A credit score of 650 in India is considered a fair or average score, which means you may face some challenges but can still secure loans, including personal loans, with certain conditions. Here is a detailed, easy-to-understand guide on getting a loan with a 650 CIBIL score, covering eligibility, challenges, tips to improve chances, and what to expect in terms of loan terms.
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Being a CIBIL defaulter doesn’t mean your loan journey ends. Kreditbazar helps you find lenders who still say YES.
Understanding a 650 CIBIL Score
- The CIBIL score ranges from 300 to 900, with 650 falling in the “fair” or “average” category.
- A 650 score indicates moderate credit risk; you may have had some missed payments or high credit utilisation in the past.
- Most banks prefer a score above 700 or 750 for easy loan approval with favourable terms 1.
People also read: How to Check Your CIBIL Score Online
Can You Get a Loan with a 650 CIBIL Score?
Yes, it is possible to get a loan with a 650 credit score, but:
- Approval chances are lower compared to higher scores.
- Lenders may offer smaller loan amounts.
- Interest rates tend to be higher, sometimes 5% or more above the rates for borrowers with excellent scores.
- Some prominent banks may reject applications below 700-750, but many NBFCs and digital lenders cater to this segment.
Types of Loans Available
- Personal Loans: Many NBFCs and digital lenders like Moneyview provide personal loans starting from ₹5,000 up to ₹10 lakh for applicants with a 650 score without needing a co-signer 3.
- Home Loans: A 650 score is considered decent for home loans, but may affect personal loan eligibility 4.
- Gold Loans, Vehicle Loans: These secured loans are easier to get with a 650 score due to collateral 4.
Challenges When Applying for Loans with a 650 CIBIL Score
- Higher interest rates and processing fees.
- Limited loan amount and shorter repayment tenure.
- Stricter scrutiny of income and employment stability.
- Some banks may outright reject applications or require a co-applicant/co-signer 1 2 4 5 7.
Pre-Approved Loans for Low CIBIL Holders – Check Now!
Being a CIBIL defaulter doesn’t mean your loan journey ends. Kreditbazar helps you find lenders who still say YES.
Tips to Improve Your Chances of Loan Approval
- Maintain Proof of Stable and Sufficient Income: Lenders look favorably on steady income (e.g., ₹25,000+ monthly) and job stability 5 7.
- Apply with a Co-Borrower or Co-Signer: This reduces lender risk and improves approval odds7.
- Explain NA/NH in Credit Report: If your report shows no credit activity or history, clarify this to lenders as a new borrower 7.
- Choose NBFCs and Digital Lenders: They often have flexible criteria and consider additional factors beyond CIBIL score 3 6.
- Use a Personal Loan Calculator: To understand how higher interest rates impact your EMIs and budget 1.
People also read: How to Get a Personal Loan When You Have a Poor CIBIL Score
How to Improve Your Credit Score
- Pay EMIs and credit card bills on time.
- Reduce outstanding debts and credit utilisation.
- Avoid multiple loan or credit card applications in a short period.
- Regularly check your credit report for errors and dispute inaccuracies.
What Interest Rates to Expect?
- Borrowers with 650 scores may face interest rates 5% or more higher than those with scores above 750.
- Rates can vary widely depending on the lender, loan amount, and tenure.
- Expect rates generally in the range of 15%-20% or higher for personal loans with a 650 score 1 4 5.
Summary Table: Loan Eligibility with 650 CIBIL Score
| Aspect | Details |
| Loan Types | Personal loans, home loans, gold loans, vehicle loans |
| Loan Amount | ₹5,000 to ₹10 lakh (varies by lender) |
| Interest Rate | Higher than prime borrowers (approx. +5%) |
| Approval Chances | Moderate; better with co-borrower or NBFCs |
| Required Income | Stable monthly income (₹25,000+) preferred |
| Collateral Needed | Usually no for personal loans; yes for secured loans |
| Repayment Tenure | Up to 5 years (varies) |
Pre-Approved Loans for Low CIBIL Holders – Check Now!
Being a CIBIL defaulter doesn’t mean your loan journey ends. Kreditbazar helps you find lenders who still say YES.
Conclusion
While a 650 CIBIL score is not ideal, you can still secure loans in India, especially personal loans, by choosing the right lenders like NBFCs and digital platforms, providing proof of income, and possibly applying with a co-borrower. Be prepared for higher interest rates and stricter terms. Improving your credit score over time will open up better loan options and terms.
Sources
- IndusInd Bank: Can I Get a Personal Loan with a 650 Credit Score? (2025)1
- Home Credit India: Can You Get a Loan with a CIBIL Score of 650? (2024)2
- Moneyview: Personal Loan for Low CIBIL Score (2025)3
- Shriram Finance: Can I Get a Loan with a Credit Score of 650? (2024)4
- HDFC Bank: Can I Get a Personal Loan With a 650 Credit Score? (2024)5
- DBS Bank: How to Secure a Personal Loan with a 650 CIBIL Score (2021)6
- Fibe: Get a Personal Loan with a CIBIL Score of 650 (2025)
