What is the minimum CIBIL score required for a car loan? MintGenie answers
The minimum CIBIL score required for a car loan can vary based on the lender’s policies and several other factors such as income, current debt, job stability and amount of down payment.
Although it is not a rule of thumb, but most lenders like to have borrowers with a CIBIL score of over 700 to qualify for a car loan.
Having a higher credit score may also help you secure a lower interest rate on your car loan, thus saving you money over the loan term.
But one should bear in mind that while a higher credit score is preferred, it’s not the sole factor which lenders consider when they evaluate loan applications.
They will also assess your income, employment stability, debt-to-income ratio, and other factors to determine your creditworthiness.
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If your credit score is lower than 700, you may still be able to qualify for a car loan, but you will in that case face higher interest rates or stricter loan terms.
In such cases, you can work on improving your credit score by making timely payments, reducing outstanding debt, and maintaining a healthy credit utilisation ratio before applying for a car loan.
The minimum CIBIL score required for a car loan can vary based on the lender’s policies and a number of other factors such as income, current debt, job stability and amount of down payment.
A CIBIL score over 700 shows a good credit history and demonstrates to the lender that you are likely to repay the loan on time.
Yes, it is possible to raise the objection by following the right procedure.
A short answer is, it does not. In fact, it is advisable to keep checking the score from time to time for accuracy.
Maintaining low credit card balances
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