SBI vs HDFC vs ICICI: Who Offers the Cheapest Personal Loan in 2025?

In 2025, the RBI made a new move. It told banks and NBFC’s to review how they check borrower credit. That includes raising the minimum CIBIL score for unsecured loans. Earlier, most banks accepted scores of 650 or 675. Many lenders won’t even look at your application unless you have at least 725.

This step is linked to reducing bad loans and helping lenders make better calls. However, it creates one thing for borrowers: your credit score is no longer a side number. It decides your interest rate, loan approval, and credit card limit.

So let’s find out what this means for you.

What Changed in CIBIL Score Rules This Year?

RBI pushed for faster credit data updates. That means banks must report credit activity every 15 days instead of monthly. It sounds technical, but here’s how it affects you.

If you pay your EMI late by 3 days, lenders will know within 2 weeks. If you clear your dues, your score can improve faster, too. But there’s no hiding room anymore.

Here is a view of the change:

These updates affect all loan types: personal, auto, education, and credit cards. Lenders now assess real-time borrower risk.

If your CIBIL score is already 750+, you’re safe. If you’re below 700, loan rejection chances go up. Those between 700 and 725 are in the grey zone. You may get a loan, but the interest will be higher.

Let’s look at an example.

Banks want more predictability. And a credit score is their fastest filter.

How does this Impact Everyday Borrowers in Real Terms?

Meet Priya. She’s a salaried IT professional with a score of 728. She applied for a ₹5,00,000 personal loan. The bank offered 13.5% interest and a 2.5% processing fee.

Now, meet Karan. His score is 763. He has the same profile and salary. He received 10.75% interest and a 1% processing fee.

That 2.75% difference adds up:

So, a higher credit score does not just give faster approval. It literally saves money. Now multiply this by home loan amounts like ₹40,00,000. The gap becomes ₹5,00,000+.

This is why the new 725 rule matters.

How to Raise Your CIBIL Score in 60 to 90 Days?

If your score is low or borderline, it’s not the end. You can improve it. But you need to move now. Since reporting is bi-monthly, any correction shows faster.

Here are five fast techniques:

1. Clear Credit Card Dues: Don’t just pay the minimum. Bring usage down to 30% or below.
2. Limit New Loan Requests: Avoid applying to multiple banks. One enquiry costs 5-10 points.
3. Use EMI Cards Smartly: If you use BNPL or EMI cards, close some accounts or consolidate.
4. Check Your Report: Visit the CIBIL site. Look for wrong entries. Raise disputes if needed.
5. Add Older Credit Cards Back: Even if unused, they add to history and limit.

What Lenders Now Expect From You Before a Loan?

Lenders now run automated underwriting. They feed your PAN, mobile, and Aadhaar. In minutes, they see your EMI record, bounced payments, and even credit card patterns.

So even if you have ₹1,00,000 in savings but a score below 725, your loan gets delayed or rejected. Worse, you may be asked to bring a guarantor.

Here’s what most banks now ask:

Keep a check on all of these. Because the score alone doesn’t seal the deal. The rest shapes how they see your profile.

Conclusion

If you earn ₹30,000 or ₹3,00,000 monthly, your CIBIL score speaks first. In 2025, that number decides everything from loan approval to interest and whether you get a pre-approved card.

So, don’t ignore it. Check it. Improve it. Protect it.

Because the new RBI norms are not temporary, lenders have already implemented them. If you plan to take any loan in the next 6-12 months, act now.

Your number matters more than you think.

FAQs

1. Can I get a loan with a 700 score in 2025?
Yes, but not all banks will accept. You may get lower amounts or higher interest. Check NBFC’s or smaller lenders who have flexible rules.

2. Does one missed EMI drop my score badly?
Yes. Even a delay beyond 30 days can reduce your score by 50+ points. And now, it shows up in 15 days instead of a month.

3. Will my CIBIL score increase if I close all credit cards?
No. Closing all cards reduces your credit history. Keep 1-2 old cards open with low use.

4. How much loan can I get with a 750 score and ₹50,000 salary?
If your fixed obligations are low, banks may offer a personal loan up to ₹12,00,000 and a home loan up to ₹35,00,000, depending on tenure.

5. Is CIBIL score same as Experian or CRIF?
Not exactly. All are credit bureaus, but lenders mostly use CIBIL as their primary reference in India. Keep your CIBIL clean.

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LoansJagat Team

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