Before a lender approves your loan — or decides what interest rate to offer you — they check one number closely: your credit score. Here's what it means, and what you can actually do about it.
Your credit score (commonly called your CIBIL score in India) is a three-digit number, typically ranging from 300 to 900, that summarises how reliably you've repaid debt in the past. It's calculated by credit bureaus based on your credit card and loan repayment history, current outstanding debt, and credit history length.
| Score Range | What it generally means |
|---|---|
| 750–900 | Excellent — best interest rates, fast approval |
| 700–749 | Good — approval likely, decent rates |
| 650–699 | Fair — approval possible, higher rates or stricter terms |
| Below 650 | Poor — approval difficult, may need a co-applicant or collateral |
Lenders use your score to estimate risk. A higher score signals lower risk of default, so lenders compete for your business with better rates. A lower score signals higher risk, so lenders charge more to offset that risk — sometimes 1–2% higher interest, which adds up significantly over a long tenure.
Once you know roughly what rate your credit profile qualifies for, it's worth checking exactly how that translates to your monthly payment.
Open the EMI Calculator