New Delhi, Sept. 19 -- A Rs.3 lakh personal loan with a credit score of 650 is possible, but borrowers must clear multiple checks, face higher interest rates, and deal with stricter repayment terms. Loan approval may also take longer because lenders see a 650 score as a moderate risk.

While the Reserve Bank of India (RBI) has not set a minimum score requirement, a 650 credit score signals weaker financial management compared to applicants with 750+. This makes lenders cautious and often leads to closer scrutiny.

Most top banks prefer scores of 720 and above, with 750 considered excellent. However, many NBFCs and fintechs also approve applicants at 650 if they meet income and employment conditions.

Applicants can strengthen their case b...