An applicant should typically have a high credit (CIBIL) score of over 700, however, different lenders have different criteria and conditions before they approve a personal loan application

If you don’t meet personal loan eligibility criteria, start by understanding the reason—low credit score, income issues, or high debts. Improve your credit score by paying off debts on time and reducing credit utilization.

Personal loans can have a positive or negative impact on your credit score, depending on how responsibly you manage your debt after you borrow one.

Personal loans are favoured for their ease of use and no collateral requirement. Rejections may occur for several reasons, but maintaining a strong credit profile can improve future eligibility, essential for emergencies even when not actively seeking a loan.