CIBIL Score Required for HDFC Personal Loan

Eligibility Criteria to Borrow an HDFC Bank Personal Loan

You need to fulfill the following eligibility criteria to borrow an HDFC Bank personal loan:

1. Credit Score: The HDFC Bank has not specified a a particular credit score requirement, but a high credit score generally ranging between 650 to 700 is preferred by the bank.

1. Credit History: The bank also checks your credit history to understand your repayment behaviour. This includes track record of on-time payments, defaulters, number of active accounts, etc.

1. Age Criteria: The applicant should be at least 21 years old and not more than 60 years old to be eligible for an HDFC Bank personal loan.

1. Employment Criteria: You should either be an employee of a private limited company or an employee of private sector undertaking (state, central, and local bodies).

1. Work Experience: You should have minimum work experience of at least one year in your current organisation, and a total work experience of at least to years.

1. Employment Proof: If you are a salaried applicant, you must submit an employment certificate or a letter from their employer. If you are a self-employed individual, you are required to provide business registration documents, professional licenses, and other relevant proof of their occupation.

Ways to Improve CIBIL Score

If you have a low CIBIL score, you can improve it gradually by taking small positive steps. They are as follows:

1. Pay your credit card bills on time: Timely credit card bill payments is one of the simplest ways to boost your credit score. You may not see the improvement overnight, but it will gradually boost your credit score.

1. Maintain a low credit utilisation: Credit utilisation ratio indicates the amount of credit you have used from the total available credit. A high credit utilisation ratio projects you as credit hungry, which has a negative impact on your credit score. It is advisable to keep your credit utilisation ratio below 30% of your total credit limit.

1. Avoid frequent loan applications: Applying for multiple loans or credit cards within a short period creates hard inquiry on your credit report, which can lower your score.

1. Avoid closing old credit cards: Old credit card accounts, especially the one with good credit history, contribute positively to your credit score. It is advisable to avoid closing old credit cards unless necessary.

1. Regularly check your credit report: Review your credit report periodically to ensure there are no errors or frauds. Dispute any incorrect entries with the credit bureau.

1. Maintain a healthy mix of credit: A balanced mix of secured (home loan, auto loan) and unsecured credit (personal loan, credit card) can improve your score, provided you manage repayments well.

HDFC Bank Personal Loan information

1. Personal Loans can be approved up to Rs. 25,00,000.

1. Flexible EMI and repayment options from 12 to 48 months.

1. HDFC Bank personal loans require no security, collateral or guarantor.

1. Loans generally approved within 72 hours of applying.

1. Free Personal Accident Cover.

1. Credit shield.

1. Customizable loans for corporate employees and working women professionals.

1. Interest rates that are among the best in the market.

What are HDFC Bank's requirements for CIBIL TransUnion Score?

Most banks in India require you to have a CIBIL TransUnion Score of above 700 to be eligible for personal loans. Since these loans are unsecured, your CIBIL score is a big factor in getting your loan approved. HDFC and other banks are approving loans for those with a scores of 700-750, or higher, with 700 being the absolute lowest limit. You should ideally aim for a score >750.

Apart from the numerical CIBIL TransUnion Score, are there any other reasons my loan may get rejected?

CIBIL Credit Reports have sections for comments against your borrowing history. Bank representatives sometimes give you the option to reach a 'settlement' with the bank if you are unable to repay the full amount. This means that your loan has not been repaid in full and is considered a negative remark. Even a score above 750 but with negative comments like settlement, defaulter, etc. that imply that you did not repay the full amount on the terms on which you borrowed it are factors that go a long way in getting your loan approved/rejected.

Your loan could also be rejected if:

1. You are overleveraged - meaning your DTI (debt-to-income) ratio is unfavourable. If you already spend a lot of your income on clearing existing debt, you will be deemed overleveraged and unable to assign more of your income towards repaying your new loan.
2. You have inadequate Tax-paying history - Banks usually need for you to have been filing income tax for at least two years prior to your loan request, to view your application favourably.
3. You are credit hungry - This is the term used to describe borrowers who have borrowed too much in the last year itself. Banks have a tendency to reject these loan applications.
4. You are matching with someone on the defaulter list -  banks maintain defaulter lists containing the names, addresses and other details of defaulters. If you move into a house that was formerly occupied by a defaulter, the banks internal defaulter list will match your loan application with a red-flagged address, making an investigation necessary.
5. You guaranteed a defaulted loan - The person who is equally responsible for repaying a loan as the borrower, is the guarantor. If there is any default on a guaranteed loan, or it has been 'settled' or paid off late, it will count as a negative rating for you.