New Delhi, April 8 -- CIBIL score represents your creditworthiness. When you apply for a personal loan from any bank or other financial institution, the company will first check your CIBIL score. Therefore, it is important to understand the minimum CIBIL score for a personal loan to avoid rejection.

CIBIL score ranges between 300 and 900 and plays a significant role in helping lenders decide whether to give you credit or not. A personal loan is an unsecured loan, which means that you don't have to pledge any collateral. Thus, the lender must bear the full risk when extending credit. Your CIBIL score helps them evaluate this risk and determine if you can repay them.

A higher credit score indicates a higher chance of timely repayment. On ...