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While obtaining a loan, bank eligibility criteria suggest a minimum CIBIL score or credit score. As a loan applicant, it is difficult to understand the difference between a credit score and a CIBIL score. This article explains the difference between them and also elaborates on how this score matters while obtaining a business loan.

Difference between a credit score and a CIBIL score

In order to know the difference between a credit score and a CIBIL score let’s first understand what these terms mean.

Credit score:

A credit score is a numeric representation of a borrower’s creditworthiness. This score is calculated on the basis of the borrower’s credit history such as the number of loans obtained, loan repayments, credit cards and their bill payments, credit utilisation ratio, loan approvals, loan rejections, number of loan applications, and so on. A numeric rating of credit is accompanied by an exhaustive report which comments on the creditworthiness of the borrower. This report is known as a credit report.

If you are obtaining a loan in your individual capacity for example auto loan, home loan, personal loan, etc., your personal credit score will be taken into consideration. However, if a business entity is obtaining a loan, then the credit score of the business is considered by the lending authority.

The Reserve Banks of India has authorised the following four agencies to calculate and generate the credit score:

  • Credit Information Bureau (India) Limited (CIBIL)
  • Equifax
  • CRIF Highmark
  • Experian

CIBIL score:

Credit Information Bureau (India) Limited also known as CIBIL is one of the most popular credit information companies in India. In other words, the CIBIL score is a credit score calculated by the Credit Information Bureau (India) Limited.

The agency scores applicants between 300 and 900. Usually, a score of 700 or more is considered to be a good CIBIL score for obtaining a loan. However, it depends on various aspects such as the bank’s eligibility criteria, involvement of security, type of loan and so on. For example, in the case of a collateral loan, a lesser CIBIL score is accepted by banks. This is because the bank can liquidate the promised asset in case of loan default.

You can easily find your CIBIL score on Tata nexarc. Visit the Business Loans page of Tata nexarc and click on ‘Check your CIBIL score’. Enter your details to get your CIBIL score.

CIBIL score vs. credit score

Do you know the difference between CIBIL score and credit score? Here are the key differentiating factors between a credit score and a CIBIL score.

Credit score CIBIL score
Definition A score that denotes an individual’s creditworthiness A credit score analysis done by the Credit Information Bureau (India) Limited (CIBIL)
Agency Credit scores can be evaluated by any licensed agency such as CIBIL, Equifax, CRIF Highmark and Experian


The credit score is prepared by CIBIL
Ranges Depending on the credit information firm, the score ranges between 300 to 850. The score range is 300 to 900.


What is the difference between the CIBIL score and the CIBIL report?

CIBIL score is a numeric presentation of creditworthiness while a CIBIL report is an exhaustive report that includes various details such as:

  • Personal information like name, date of birth, address, etc.
  • PAN card number
  • Contact information such as mobile number, email ID, etc.
  • Employment details along with income
  • CIBIL score
  • Total credit accounts
  • Total amount of credit available
  • Credit utilisation ratio
  • Credit details such as type of availed loans in the past, ongoing loans and their repayment timelines
  • Credit enquiries
  • Loan defaults
  • Loan rejections
  • Credit card details for all credit cards held by you
  • Credit card bill payment and defaults, if any
  • Credit card cancellations, if any

CIBIL Score vs. CIBIL report

Here is the difference between a credit score and a CIBIL report.

CIBIL Score CIBIL report
CIBIL score is a three-digit score of an individual or a business entity It is an exhaustive credit report of an individual
Denotes creditworthiness on a given date. It includes credit history including loans obtained in the past and repayment history
Does not provide information about loan rejections and defaults Includes information on loan repayments, loan default history and so on
Does not provide any information about credit cards and payments Includes information about all credit held by an individual’s credit card cancellations, payments, etc.

CIBIL score or traditional credit score: Which matters more?

Here are a few things to note about a credit score and a CIBIL score.

Business Loan
  • Different agencies have distinctive methods of calculating the credit score. For example, CIBIL’s method of calculating a credit score is different from Experian’s.
  • Similarly different lending institutes consult varied credit ranking agencies.
  • However, CIBIL is the most widely accepted credit information company in India. Leading banks and NBFCs continue to consult the organisation.
  • Due to its wide acceptance across the country, the CIBIL score matters more as compared to any other credit score.

Frequently asked questions

Is the credit score and CIBIL score the same thing?

No. A credit score is more of a generic term. It is a credit score, which can be calculated by any authorised credit rating bureau. On the other hand, the CIBIL score is prepared by CIBIL.

How to check your CIBIL score?

There are various ways to check your CIBIL score. You can log in to the CIBIL’s website and obtain the score. You may have to pay a nominal fee for doing so. Alternatively, you can also log on to Tata nexarc’s Business Loans page to get your CIBIL score.

What is the minimum CIBIL score required to obtain a business loan?

The minimum CIBIL score required for obtaining a business loan varies depending on various factors. However, a score of 700 or above is considered to be a good score for obtaining a loan.

Swati Deshpande

Swati is a passionate content writer with more than 10 years of experience crafting content for the business and manufacturing sectors, and helping MSMEs (Micro, Small and Medium Enterprises) navigate complexities in steel procurement, and business services. Her clear and informative writing empowers MSMEs to make informed decisions and thrive in the competitive landscape.