Car Loan for a 650 CIBIL Score: Exploring Your Options

Car Loan for 650 CIBIL Score

Your credit score plays a significant role in determining your eligibility for a car loan. A credit score of 650, while considered fair, may pose some challenges when seeking a car loan. However, it doesn’t mean you won’t be able to secure financing for your vehicle purchase. In this article, we’ll explore the options available to individuals with a CIBIL score of 650 and discuss strategies to improve your chances of getting a car loan.

Understanding the Impact of a 650 CIBIL Score

A credit score of 650 falls within the fair range. While it may not be the ideal score for obtaining the most favorable loan terms, it doesn’t automatically disqualify you from getting a car loan. Lenders consider multiple factors when evaluating loan applications, including your income, employment stability, debt-to-income ratio, and the specific policies of the lending institution.

Options for Getting a Car Loan with a 650 CIBIL Score

1. Banks and Financial Institutions: Start by approaching traditional banks and financial institutions to explore your car loan options. While they may have stricter lending criteria, some banks are willing to work with individuals with fair credit scores. Be prepared to provide additional documentation such as income proof, bank statements, and employment stability records to strengthen your application.

2. Non-Banking Financial Companies (NBFCs): NBFCs are alternative lending institutions that often have more flexible lending criteria compared to banks. They may be more open to considering your car loan application despite a fair credit score. Research and reach out to reputable NBFCs to inquire about their eligibility requirements and loan terms.

3. Credit Unions: Credit unions are member-owned financial cooperatives that offer banking services to their members. They often have more lenient lending criteria and may be more willing to work with individuals with fair credit scores. If you are a member of a credit union or eligible to become one, consider approaching them for a car loan.

4. Online Lenders: Online lending platforms have gained popularity in recent years, offering convenience and flexibility in loan applications. Some online lenders specialize in providing loans to individuals with fair credit scores. Explore reputable online lenders and compare their interest rates, terms, and fees to find the best option for your car loan needs.

Tips for Getting a Car Loan with a 650 CIBIL Score

1. Improve Your Credit Score: While it may not provide an immediate solution, working on improving your credit score can increase your chances of getting better loan terms in the future. Make timely payments on existing debts, keep credit card balances low, and avoid new credit applications that may negatively impact your score.

2. Save for a Higher Down Payment: A larger down payment can help offset the impact of a fair credit score. Saving for a substantial down payment demonstrates your commitment to the purchase and reduces the loan amount required. It may also help lower the interest rate offered by lenders.

3. Consider a Co-Signer: If possible, find a co-signer with a stronger credit profile to increase your chances of loan approval. A co-signer is equally responsible for loan repayment and can provide the lender with more confidence in extending credit to you.

4. Compare Loan Offers: Shop around and compare loan offers from different lenders to find the best interest rates and terms available to you. Each lender has its own underwriting criteria, so exploring multiple options allows you to make an informed decision.


Securing a car loan with a 650 CIBIL score may present some challenges, but it’s not impossible. Explore options with banks, NBFCs, credit unions, and online lenders that are willing to work with individuals with fair credit scores. Focus on improving your credit score, save for a higher down payment,

consider a co-signer, and compare loan offers to find the best terms available to you. Remember to approach reputable lenders and be prepared with the necessary documentation to strengthen your loan application. With the right approach and persistence, you can still obtain a car loan and drive away in the vehicle you desire. As you make timely payments on your car loan, you can also work towards improving your credit score for future financial opportunities.

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