Loan Eligibility · 4 min read
What Credit Score Is Needed for a Business Loan?
Credit scores in India typically range from 300 to 900. For business loans, lenders look at the business's commercial credit report (where one exists) and at the personal scores of the proprietor, partners or directors.
What score do lenders look for?
Policies vary, but a personal score of 700–750 or higher generally opens up most banks and the better pricing. Below that, options narrow to lenders who weigh collateral and cash flow more heavily, usually at a higher rate. There is no single cut-off that applies to every lender.
More than the number
Lenders also read the detail: recent missed payments, settled or written-off accounts, high credit card utilisation and a large number of recent enquiries all matter, even with a reasonable score.
Compare available loan options for your profile with RateWise.
Check My RateIf your score is low
- Check your report for errors and raise disputes with the credit bureau
- Clear overdue amounts and bring card utilisation down
- Offer collateral — a secured loan can be approved where an unsecured one would not
- Avoid multiple applications in a short period
Does checking options affect my score?
Checking your own report is a soft enquiry and does not affect your score. A formal loan application results in a hard enquiry, which is recorded.
Common mistakes
- Not checking your own and partners' credit reports before applying
- Leaving old settled or disputed accounts unresolved
Frequently asked questions
What CIBIL score do banks want for a business loan?
Many banks prefer 700 or above for promoters, but the exact cut-off varies by lender and product.
Interest rates, fees, eligibility and loan terms vary by lender and borrower profile. Information on this page is for educational purposes and should not be considered a guarantee of approval or a specific rate. RateWise is a loan advisory, not a lender. Privacy Policy