Can I Get a Personal Loan With 650 Credit Score?
4 September, 2024
Synopsis
Lenders typically ask you to show your CIBIL or credit score when you apply for Personal Loans.
You need to show a credit score of 650+ points to be deemed eligible for Personal Loans.
A good credit score gives you more negotiation power, enabling you to get low interest loans
Whether you need money to pay for medical or financial emergencies; whether you need funds for planned events like holidays and weddings, or simply to purchase high-ticket products, you can obtain it easily through Personal Loans. When you send you Personal Loan application, lenders typically ask for your credit score. A good credit score enhances your loan approval chances significantly. If you are wondering, ‘my credit score is 650 – can I get a Personal Loan’, you can find your answer in this article.
What is Credit Score and Why Is It Important?
Credit score is a 3 digit figure that gives lenders a glimpse in your credit worthiness. If you have been paying off your loans and debts on time, your credit score will automatically be high, exceeding the 650 mark. A high credit score makes it easy for you to obtain loans at attractive interest rates, whereas a low credit score impedes your potential to get the funds. It tells lenders that you are a risky borrower, making them levy higher interest rates or seek collateral, among other things.
Can I Get a Personal Loan for Credit Score of 650?
A credit score of 650 just about makes you eligible for a Personal Loan. Such a score is usually considered moderate, but not exactly excellent. Lenders may consider your Personal Loan application, so long as you meet the other necessary eligibility criteria. Essentially, you should be able to show a stable net monthly income of at least ₹25,000 and should be salaried or self-employed, with at least one year of experience. If you fulfil these criteria, you can get Personal Loan for 650 credit score.
What Happens If Your Credit Score is lower than 650 Points?
A credit score lower than 650, leads to the following hurdles while applying for Personal Loans:
Lenders may consider you a risky borrower and not approve your loan application.
If an offer is made, the loan terms may be stringent, including significant interest rates.
You may be forced to provide collateral, over and above the high interest rates charged.
You may have to accept loans from private/small-time lenders making irrational demands.
You stand to lose your pledged collateral if you are unable to repay your loan EMIs on time.
What Happens If Your Credit Score Exceeds the 650 Points Mark?
While applying for Personal Loans for 650 credit score or above, you can several advantages, such as these listed below:
Lenders may quote lower interest rates, thus reducing your total loan costs significantly.
A healthy credit score makes it possible for you to negotiate better loan terms, such as lower interest rates, preferred repayment tenures, etc.
Lenders may also be willing to sanction high-value loans, giving you access to substantial funds.
You can enjoy quick loan approval and swift disbursals, and get the loan amount within hours.
Besides simplifying the loan process, a high credit score also makes it easy for you to apply for Credit Cards.
Have a Good Credit Score? Consider HDFC Bank for Your Personal Loan Needs
HDFC Bank Xpress Personal Loans are designed to be versatile, allowing you to pay for urgent and planned expenses with utmost comfort. We provide high-value Personal Loans of up to ₹40 lakhs, which you can repay in pocket-friendly EMIs over tenures of up to 5 years. You can apply for our paperless Xpress Personal Loans online and enjoy disbursals.
*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Personal Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank’s requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
