Minimum Credit Score Required for Personal Loan in 2026

Getting a personal loan in 2026 is easier than ever—but approval still depends heavily on one factor: your credit score. Many borrowers apply confidently, only to face rejection or high interest rates because they don’t meet the minimum score requirement. The good news? Knowing the exact credit score range lenders expect—and how to improve it—can significantly increase your chances of approval. This guide explains the minimum credit score required for a personal loan in 2026, how lenders evaluate applicants, and what you can do if your score is low.

What Is a Credit Score and Why It Matters for Personal Loans

A credit score is a numerical representation of your creditworthiness, based on your borrowing and repayment history. In India, most banks and NBFCs rely on CIBIL, Experian, or Equifax scores.

For personal loans, lenders use your credit score to assess:

• Repayment reliability

• Default risk

• Interest rate eligibility

• Loan amount limits

A higher score means lower risk, which translates into better loan terms.

Minimum Credit Score Required for Personal Loan in 2026

In 2026, lenders have tightened risk controls due to rising unsecured loan defaults. While criteria vary, here’s the general benchmark followed by most Indian lenders:

Credit Score Ranges and Approval Chances

750 and Above – Excellent

• High approval probability

• Lowest interest rates

• Faster disbursal

• Higher loan amount

700–749 – Good

• Approval likely

• Competitive interest rates

• Standard documentation

650–699 – Fair

• Conditional approval

• Higher interest rates

• Income stability becomes critical

Below 650 – Poor

• High rejection risk

• Approval only via select NBFCs or fintech lenders

• Often requires higher income or co-applicant

Most banks in 2026 prefer a minimum score of 700+ for personal loans.

Credit Score Requirements by Lender Type

Banks

Public and private banks usually require:

• Minimum score: 700–750

• Stable income and employment history

• Lower debt-to-income ratio

NBFCs

NBFCs are more flexible:

• Minimum score: 650+

• Slightly higher interest rates

• Faster approvals

Fintech & Digital Lenders

App-based lenders may approve loans with:

• Scores as low as 600

• Shorter tenure

• Higher processing fees

Can You Get a Personal Loan with a Low Credit Score?

Yes—but with conditions.

If your credit score is below 700, lenders focus more on:

• Monthly income

• Employment stability

• Existing EMIs

• Banking behavior

Many borrowers also explore alternative documentation-based loans, such as personal loans on Aadhaar, which verify identity faster but still consider credit risk. You can read this detailed guide on personal loan on Aadhaar card eligibility for deeper insights.

How to Improve Your Credit Score Before Applying

Improving your score even by 50–70 points can unlock better loan options.

1. Pay EMIs and Credit Card Bills on Time

Payment history carries the highest weight. Even one missed payment hurts.

2. Reduce Credit Utilization

Keep credit card usage below 30% of the limit.

3. Avoid Multiple Loan Applications

Too many hard inquiries reduce your score temporarily.

4. Check Credit Report Errors

Incorrect defaults or closed loans can drag your score down.

You can also plan repayments better using an online EMI calculator to ensure affordability and prevent missed payments.

Factors Lenders Consider Beyond Credit Score

Even with a good score, approval isn’t guaranteed. Lenders also check:

• Net monthly income

• Job or business stability

• Age and residence stability

• Existing loan obligations

A balanced profile improves approval odds significantly.

FAQ: Minimum Credit Score for Personal Loan in 2026

What is the minimum credit score required for a personal loan in 2026?

Most banks require 700 or higher, while NBFCs may approve loans starting from 650.

Can I get a personal loan with a 600 credit score?

Yes, but usually from fintech lenders or NBFCs at higher interest rates.

Does Aadhaar-based personal loan need a credit score?

Yes. Aadhaar simplifies KYC, but credit score is still checked.

How long does it take to improve a credit score?

Visible improvement usually takes 3–6 months with disciplined repayment.

Will checking my credit score reduce it?

No. Soft checks do not affect your credit score.

Conclusion: Plan Smart Before Applying in 2026

In 2026, a credit score of 700+ is the safest benchmark for securing a personal loan at favorable terms. If your score is lower, don’t rush into high-interest offers. Take time to improve your credit health, plan EMIs carefully, and choose lenders wisely. A well-prepared application not only boosts approval chances but also saves money over the long term.

If you’re planning a loan soon, start by reviewing your finances and repayment capacity—smart preparation always pays off.