New Delhi, May 21 -- Securing a personal loan with a credit score of 510 poses significant difficulties for aspirational borrowers. Generally, a credit score below 600 is considered poor and inadequate.

It indicates improper financial planning on the borrowers part and a possible history of defaults or high credit utilisation. Most of the banks and financial institutions prefer applicants with a credit score of 750 or above for personal loans, as this score reflects responsible credit behaviour and a lower risk of default.

Animesh Hardia, Senior Vice President, Quantitative Research at 1 Finance, says "With a credit score as low as 510, qualifying for a Rs.3 lakh personal loan from banks or major NBFCs is extremely unlikely. Such a low ...