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What is the CIBIL Score Requirement for Car Loan?

What is the Importance of Credit Score for Car Loans?

What is a Good Credit Score for a Car Loan?

While the four credit bureaus (TransUnion CIBIL, Experian, CRIF High Mark, and Equifax) use slightly different scoring models, a credit score above 700-750 is generally considered good.

Here is how your credit score or CIBIL score can affect your loan approval:

Credit Score

Effect on Your Loan

750 – 900

High chances of your requests for a car loan being approved. Additionally, the car loan approval process will be quicker, and you will also be able to negotiate the best interest rates and loan amount.

600 – 749

With average or middling scores, you can still get approved for a car loan, but lenders will also look closely at other factors like income, number of existing loans, employment stability, etc. Thus, the approval process will take longer and you will likely not get the best interest rates.

300 – 599

Scores less than 600 will adversely affect your chances of getting your car loan approved, and you might get rejected. However, those lenders who do offer you car loans, will offer low loan amounts and high interest rate, or request collaterals like assets, fixed deposits, etc.

Can you get a Car Loan with a Low Credit Score?

How to Improve your Credit Score for a Car Loan?

Frequently Asked Questions