The short answer
Most lenders want 700 or above for an unsecured business loan, and 750 or above gets you the better rates. Between 650 and 700 the options narrow and the pricing rises. Below 650, secured lending against property is usually the realistic route.
The bands, and what actually happens at each
| Score | What to expect |
|---|---|
| 750+ | Most lenders will look at the file, and you are in the better half of the pricing range. |
| 700 – 750 | The normal working range. Approvals are common; the rate is average rather than best. |
| 650 – 700 | Fewer lenders, higher pricing, more questions. The reason for the score matters a lot here. |
| Below 650 | Unsecured lending is very difficult. Property-backed lending is the practical route. |
| -1 or NA | No credit history. Not the same as bad — but lenders have nothing to assess, so expect a conservative first loan. |
Whose score is checked?
For a proprietorship, yours — you and the business are the same legal person. For a partnership or LLP, the partners’. For a private limited company, the directors’ personal scores and, where it exists, the company’s commercial credit report. There is no version of business borrowing in India where the promoter’s personal credit record does not matter.
Why the reason matters more than the number
A 690 caused by a single missed EMI three years ago during a genuine cash crunch is a different conversation from a 690 caused by an ongoing pattern of 60-day delays. Lenders will listen to the first. Have the explanation ready and, where possible, evidenced.
What is hardest to argue past is a settlement. If you settled a loan or card for less than the full amount, that entry does real damage and it persists. If you can afford to convert it to “closed” by paying the difference, it is often worth doing before you apply for anything significant.
If your score is low right now
- Clear every overdue balance, however small, and get the report updated.
- Bring credit card usage below 30% of the limit and keep it there for three months.
- Stop applying. Every enquiry makes the next one harder.
- Do not close old cards. Age of credit helps you.
- Look at secured lending. Against property, the score matters less because the lender has recourse.
Realistically, meaningful improvement takes six to twelve months of clean behaviour. There is no legitimate shortcut, and anyone offering to fix a score for a fee should be avoided.
Free, and it does not ask for your phone number.
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