<figure class="wp-block-image size-large hts-content-image"><img src="https://images.unsplash.com/photo-1651129518942-21b21bd497e9" alt="Understanding Credit Score Requirements for a â¹1 Lakh Personal Loan"/></figure>
<h2>What is a Personal Loan?</h2><p>A personal loan is an unsecured loan that allows individuals to borrow a set amount of money from a financial institution, typically for various personal expenses. In India, loans of up to â¹1 lakh are common and can be utilized for anything from medical emergencies to home renovations.</p><h2>Minimum Credit Score Needed</h2><p>When applying for a â¹1 lakh personal loan, one of the primary factors lenders consider is the applicant&#8217;s credit score. Most financial institutions require a minimum credit score of around 650 to 750. A higher credit score improves the chances of loan approval and may even result in better interest rates.</p><h2>Impact of Your Credit History</h2><p>Your credit history plays a significant role in determining your eligibility for a personal loan. If your credit score falls below the minimum threshold, lenders may view you as a high-risk borrower, which could lead to denial of your application. It is crucial to check your credit report regularly and rectify any inaccuracies. Building a good credit history by making timely payments on existing debts can also bolster your score.</p><p>In conclusion, ensuring you meet the minimum credit score requirements is vital when applying for a â¹1 lakh personal loan. Always strive to maintain a healthy credit score to improve your loan prospects and secure better financial opportunities.</p>
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