Minimum CIBIL score for a car loan: our guidance and what else counts

Minimum CIBIL Score for a Car Loan

No lender has a universal minimum CIBIL score for a car loan. A strong credit profile can improve your chances of approval and may help you access better interest rates. As general educational guidance, CIBIL considers a score above 700 good.

The final decision, however, rests with the lender’s policy. Your score is a key marker, but lenders also check your income, existing debt, and the car’s age and value before approving a loan.

Piramal Finance Used Car Loan: Key Details

Here are key points you need to know to apply for a used car loan with us.

• Loan amount: Up to ₹25 lakh, with financing of up to 90% of the car’s value.
• Tenure: 12 to 60 months.
• Security: The car acts as collateral; no guarantor or additional collateral is required.
• Salaried applicants: Age 21–60, minimum annual income of ₹2.5 lakh and at least one year of continuous employment.
• Self-employed applicants: Age 23–65, minimum annual income of ₹3 lakh and at least two years of business continuity.
• Credit assessment: We consider your credit score alongside your documented income and existing debt obligations.
• Interest rates: As this is a secured loan, rates may be lower than those for an unsecured personal loan. Your applicable rate depends on our assessment.

See the full details of the Piramal Finance used car loan.

Disclaimer: These details are indicative and do not constitute a loan offer. Published terms and eligibility criteria are subject to change at Piramal Finance’s discretion, in accordance with applicable regulations. Your sanctioned amount, rate and repayment terms will be confirmed in your loan documents.

New Car or Used Car: Does the score requirement differ?

We offer two options: a used car loan and a personal loan that can finance a new or used car. The used car loan uses the vehicle as security, which typically results in a lower interest rate compared to an unsecured personal loan.

Your CIBIL score and income matter for both. For a used car loan, we also assess the car’s age and value. Eligibility and terms differ by product and your overall credit profile.

Can I get a Used Car loan with a low CIBIL Score?

Here are some practical tips to increase your chances of getting a used car loan approved with us.

• Co-applicant with a strong credit profile: A stronger score may help you access a better rate. The co-applicant shares repayment liability, so both parties must understand the commitment. A co-applicant with a stronger credit score may be perceived as a low-risk borrower, making used car loan approval easier.
• Larger down payment: If you have a lower credit score, making a larger down payment may strengthen your application. We finance up to 90% of a used car’s value. A larger down payment reduces how much you need to borrow, but it doesn’t guarantee approval or resolve every credit concern.
• Meeting income criteria: Meeting the published income rules may aid approval. Salaried applicants need a minimum annual income of ₹2,50,000 and one year of continuous employment. Self-employed applicants need ₹3,00,000 and two years of business continuity. These are fixed requirements, along with your credit score.
• Current debt-to-income ratio: Manage your existing debt. Lenders assess your Debt-to-Income Ratio (DTI), which is the portion of your income already committed to monthly loan repayments. A lower ratio may strengthen your application.

Your final rate and approval depend on your CIBIL report, repayment history, and financial stability.

To lift your score first, see how to increase your CIBIL score from 600 to 750.

What to Fix Before You Apply?

A used car loan applicant can use this checklist to identify what needs sorting before starting the formal application.

These actions take time to reflect. Our guidance explains that good credit behaviour typically shows measurable improvement within a few refresh cycles.

Check Your CIBIL Score Before Applying for a Used Car Loan

Planning to finance a used car? Check your CIBIL Score for free with us before you apply. It helps you review your credit profile and ensure your report reflects the latest information. Check your score on our website or app and approach your used car loan application with a clearer picture of your credit profile.

Here are 4 simple steps to check your CIBIL score with Piramal Finance

Note: Checking your CIBIL score is a soft inquiry and does not impact your credit score.