# What Credit Score Do You Need for a Home Loan or Personal Loan? > What CIBIL score lenders look for on home, car and personal loans, how your score changes your interest rate, and what else lenders check. With a simple example of what a better score saves. - **Published**: 2026-11-05 - **Modified**: 2026-11-05 - **Category**: loans - **URL**: https://www.tldr.money/articles/loans/credit-score-for-loan --- New to loans? Start with the [loans guide](/loans). This page answers one question: **what credit score do you need to get a loan, and how much does a better score save you?** ## The short answer | Loan | Score most lenders look for | For the best rates | |---|---|---| | **Home loan** | About 700+ | 750 to 800+ | | **Car loan** | About 700+ | 750+ | | **Personal loan** | About 725 to 750+ | 750 to 800+ | | **Credit card** | About 700+ | 750+ for premium cards | There is no single RBI cut-off. Each lender sets its own, so treat these as a guide. Do not know your score? [Check it free](/articles/loans/check-cibil-score-free). It does not lower your score. ## Why personal loans are stricter A **home loan** or **car loan** is secured: the house or car is pledged. If you stop paying, the lender can recover it. A **personal loan** is unsecured. Nothing is pledged. So lenders rely much more on your credit score, and charge more if it is low. ## How your score changes your rate Many banks price home loans by **score band**. A better score gets a smaller spread above the benchmark, which means a lower rate. (New to spreads? See [how home loan interest rates work](/articles/loans/home-loan-interest-rates-explained).) **Example: a INR 50 lakh home loan for 20 years** | | Strong score | Average score | |---|---|---| | Rate | 8.00% | 8.75% | | EMI | INR 41,822 | INR 44,186 | | Extra each month | | **INR 2,364** | | Extra interest over 20 years | | **about INR 5.7 lakh** | **What this means:** a better score can save you more than INR 5 lakh on one home loan. Raising your score before you apply is often the best-paid work you will ever do. See [how to improve your credit score](/articles/loans/improve-credit-score). *How we worked this out: standard reducing-balance EMI formula. The rate gap is an example; actual gaps depend on the lender.* Try your own numbers in the [home loan EMI calculator](/tools/home-loan-calculator). ## What else lenders check Your score gets you in the door. These decide how much you can borrow: ### 1. Your income Lenders want steady income: salary slips, Form 16 and bank statements, or ITRs and business records if you are self-employed. Freelancers often need 2 to 3 years of ITRs. ### 2. Your existing EMIs Lenders add up all your EMIs, including the new one, and compare them with your income. Many want this under **about 40 to 50% of your monthly income**. > **Example:** take-home pay INR 1,00,000. Existing car EMI INR 12,000. If the lender's limit is 50%, your new home loan EMI can be at most about INR 38,000. Check your take-home with the [in-hand salary calculator](/tools/in-hand-salary-calculator). ### 3. Your down payment (home loans) RBI caps how much of a home's value a bank can lend: | Loan amount | Bank can lend up to | |---|---| | Up to INR 30 lakh | 90% of the property value | | INR 30 lakh to INR 75 lakh | 80% | | Above INR 75 lakh | 75% | So you need to pay the rest yourself. A bigger down payment also makes lenders more comfortable. ### 4. Your job and age Lenders look at how long you have been in your job and how many working years you have left. That decides the longest tenure they will offer. ## Low score? Five ways to still get a fair deal 1. **Add a co-applicant** with a strong score and income, such as a spouse or parent. 2. **Borrow less** or put down more money. 3. **Pick a secured loan.** A loan against an FD or gold is easier than a personal loan. 4. **Fix errors first.** A wrong late payment can drag your score down. [Dispute it free](/articles/loans/check-cibil-score-free). 5. **Wait 3 to 6 months** while you pay everything on time and bring card use under 30%. Then apply.
Apps or agents that promise a loan "with any score" often charge very high rates and fees. Check the lender is registered with RBI, read the Key Fact Statement, and compare the APR. See [your rights as a borrower](/articles/loans/home-loan-borrower-rights-rbi).
## Before you apply: a quick checklist - [ ] Check your score and report for errors - [ ] Pay down card balances to under 30% of the limit - [ ] Clear any overdue amount, even a small one - [ ] Work out an EMI you can afford - [ ] Compare 2 or 3 lenders, then apply to just one or two ## Read next - [How to improve your credit score](/articles/loans/improve-credit-score) - [How to check your CIBIL score for free](/articles/loans/check-cibil-score-free) - [Personal loan vs credit card loan](/articles/loans/personal-loan-vs-credit-card-loan) - [Home loan balance transfer](/articles/loans/home-loan-balance-transfer) ## Sources - RBI, Master Circular on Housing Finance (loan-to-value limits) - RBI, Key Facts Statement for Loans & Advances, circular dated 15 Apr 2024 - Lender score ranges: tldr.money summary of typical lender practice; each lender sets its own criteria - EMI and interest figures: tldr.money calculation using the standard reducing-balance EMI formula --- - [More loans articles](https://www.tldr.money/articles/category/loans) - [All articles](https://www.tldr.money/articles)