What is a respectable CIBIL score to get a car loan approved?


What is a respectable CIBIL score to get a car loan approved?


Users having a bad credit history or a poor CIBIL score are likely to be declined a car loan. Generally a credit score of more than 700 points is considered to be a good rating before the bank approves the car loan application. This is a just a rough yardstick as banks verify financial credential as well as personal income tax statements to decide the overall loan limit to be offered for each client.

The loan to value ratio for a car loan is also flexible and depends on your credit rating and your interpersonal relationship with the bank. If you have a healthy CIBIL score you can bargain with the bank for a higher LTV or a lower rate of interest for your car loan.


How to calculate CIBIL score?


You can know your credit score by following this link: https://www.cibil.com/online/credit-score-check.do. Do fill up the form in the link with all details as required. You will also have to remit a small fee- Rs.470/- via NEFT / Credit /Debit card.You will get your cerdit score over mail.

It is good to know the score before you proceed for taking a loan, especially if you have taken any loans previously or if there has been any instances of cheque bounces in your account




My CIBIL score is low but the prime culprit was my cousin to who i was a loan guarantor. Now i
need a car loan so will banks consider my case favorably?


@Sourav banks also take into account the reasons behind your low credit score.

If your score is due to lower credit taken by you then your case is more favorable compared to if your CIBIL score is low due to loan defaults in the past. While it is best to maintain a CIBIL score above 750, if you have a slightly lower than average credit score there is still some hope.

Although you haven’t mentioned your score i would suggest you start improving your credit score slowly before applying for a loan.


Someone told me CIBIL is also looking at salary accounts for score calculation. Is this true?


Not currently but maintenance of your salary account will be a factor in the near future. You may have a zero balance salary account but if you are always keeping it empty it does not auger well for you as someone who is managing his finances well. Since CIBIL tracking tools will be keeping an eye on your account behavior in the future so maintain a good balance in your salary and current accounts.


Where can I check cibil score online?


You can download the form to request your CIBIL score online by visiting https://www.cibil.com/online/credit-score-check.do. Once you fill up the form you will need to attach your identification documents like PAN number, passport etc. After uploading the identification documents, you will be directed to a payments page where you will need to furnish the payment of Rs. 500 for
obtaining your CIBIL TransUnion Score (including CIR). You will then receive
your CIBIL scorecard in your email in 4-5 working days


How often should I keep checking my cibil?


There is no fixed timeline as to what constitutes the best time to check your cibil score. It will depend on your financial transactions, your existing loans, your current score etc. Usually people do not bother about their credit score unless they are planning to take up a loan. Now if you find out your credit score is poor at the last minute you will not have enough time to improve your credit score. Keep checking your credit score every six to eight months or so that
you can know how your financial planning is affecting your credit score.


Hi Dhyan,

If you are looking for your Credit Score, please click here to get it for free - https://www.bankbazaar.com/credit-score.html. Most of the time, a Credit Score from different credit information agencies are more or less the same as they collect the sane information from banks on the individual. A score of 700+ is good enough to get a Car Loan.

BB Expert


Thanks Dhanya Menon


Hi Sohini,

Usually, a Credit Score of over 700 is good enough to get any kind of loan. However, if you have defaulted on your Credit Card or loans in the recent past, a good Credit Score might not be enough. You might have to settle that Credit Card or loan to get your Car Loan approved. Click here to check your Credit Score for free. Also, it may be best to check your Credit report before applying for a loan. This is to ensure that all the information in the report is correct. Errors in the report can also make it tough for you to get a Car Loan or any other loan. Always check your eligibility for applying for a loan. This lowers the chances of rejection. Want to check your eligibility for a Car Loan? Click here.

BB Expert


Hi Aswani,

Credit information bureaus don’t look at your salary, income or your salary account for deciding your Credit Score. Your ‘Credit Score’ is a three digit score calculated by credit information bureaus based on your past credit history.
This score typically ranges between 300 and 850. It helps financial institutions judge your ability to repay loans and credit on time. Following are the factors that affect your Credit Score:
• Payment history – It has an impact of 35%
• Card utilization – This has an impact of 30%
• Age of portfolio – This makes up 15% of your Score
• Credit enquiries – 10% of your Score is dependent on this

Want to check your Credit Score for free? Click here.

BB Expert


Hi Sourav,

Being a guarantor will have an impact on your eligibility for a loan. Banks consider both the loans that you pay as well as the loans that you have stood guarantee for when determining the loan amount that you are eligible for. Usually, they take into account only the outstanding amount of the loan. So, if the loan granted was Rs. 40 lakhs and the outstanding is only Rs. 30 lakhs, they will consider the latter. Also, late payments or defaults by the person who took the loan you guaranteed will have an impact on your Credit Score. That is why you need to be careful when you guarantee a loan.

You can try and improve your Credit Score. There are a number of things that you can do to improve your Credit Score. If you still hold a Credit Card, start paying your bills on time. This will definitely improve your score. If you have any existing loans, repaying them on time will also help. Maintain a credit utilisation ratio of 10%-30%. This is the ratio of your credit usage to your credit limit. For instance, if your credit limit is Rs.1,00,000, use just Rs.20,000-30,000 a month of the credit available to you. This will make you look like someone who uses credit in a responsible manner. Read this post for more information - https://blog.bankbazaar.com/3-ways-to-improve-your-credit-score-quickly/.

Want to check your Credit Score for FREE? Click here. Or want a Car Loan? Click here.

BB Expert