How to get a personal loan with low CIBIL score

When applying for credit in India, lenders assess your CIBIL score to understand repayment history and financial behaviour. A personal loan for low CIBIL score may be considered for individuals with limited or weaker credit profiles who need financial support. A low score can result from missed payments, high credit usage, or multiple loan enquiries. Approval is not guaranteed and depends on lender assessment. In some cases, loan terms may vary, such as loan amount or interest rate. Maintaining good financial discipline and reducing dues may help improve credit profile over time. Borrowers can check eligibility online using mobile number and OTP through a simple process before applying.

You can also check your loan eligibility using just your mobile number and OTP through a 100% online process, helping you understand available options before applying.

Your CIBIL score is a key factor that influences your personal loan eligibility and approval chances. Generally, a score of 650or above reflects good creditworthiness, making it easier to get loans with competitive interest rates. A low CIBIL Score loan may still be available, but approval depends on overall financial factors such as income, job stability, and existing liabilities. Applicants looking for a low CIBIL Score personal loan may face stricter conditions like higher interest rates or lower loan amounts. While options exist for lower credit profiles, improving repayment behaviour and reducing debts can help secure better loan offers in the future.

• Can I get a personal loan with low CIBIL Score?

  
  Lenders look at your credit score to determine how likely you are to repay a loan. Additionally, if your CIBIL score is low, it could be difficult for you to secure a personal loan. As a result, it is recommended to maintain a CIBIL Score of 650 or above in order to get a personal loan.

  
   

• Prove that your income can support EMI payments

  
  If you have received an increase in your salary or have an additional source of income, a lender may consider your application for a personal loan even if you have a low credit score. If you can communicate to the lender that you have a stable job and steady income, they are more likely to grant you the loan despite a poor CIBIL score. However, you may have to pay a higher personal loan interest rate when you prove your eligibility in this manner.

  
   

• Ask for a lower personal loan amount

  
  Asking for a high amount with a low credit score only indicates more risk to the lender. From a lender’s point of view, these are indicators that you may default on repayment. Suppose you apply for a lower amount of a personal loan. In that case, a lender may feel more comfortable granting the loan to you, as a lower amount is easier to repay.

  
   

• Apply with a co-applicant or secure a guarantor

  
  In case your CIBIL credit score is low, you can avail of a personal loan by involving a co-applicant or a guarantor. Of course, you will need to ask the other applicant beforehand, as they will have to complete KYC formalities and provide signatures too. The key benefit here is that if your lender finds the co-applicant or guarantor to have a steady income and a better credit score, they are certainly more likely to grant you a personal loan.

• Pay pending dues on time – Clear outstanding credit card bills and EMIs to boost your score.
• Limit new credit applications – Avoid multiple loan requests, which can negatively impact your score.
• Check your credit report – Identify and correct errors before applying for a personal loan for low CIBIL score.
• Reduce credit utilisation – Keep your card utilisation below 30% of the available limit.
• Opt for a secured loan or low CIBIL personal loan – Choosing lenders who cater to low CIBIL borrowers can improve approval chances.

Your CIBIL report may sometimes contain errors, usually when recent information has not been updated correctly. Such mistakes can affect your credit score through no fault of your own. This is why it is important to check your CIBIL report for free on a regular basis and raise a correction request if needed. Doing so can help improve your credit score and strengthen your chances of getting a personal loan.

Your CIBIL score is calculated based on four key factors, each carrying a specific weightage:

‘NA’ or ‘NH’ on your credit report indicates that there has been no credit activity in your name, either because you have never taken credit or because there has been no activity in the last 36 months. In such cases, your CIBIL report may not show a credit score. You can speak to the lender about this credit inactivity, as some lenders may still consider your application, usually at a slightly higher rate of interest.

• Nationality: Indian
• Age: 21 years to 80 years*.
• Employed with: Public, private, or MNC.
• CIBIL Score: 650 or higher.
• Customer profile: Self-employed or Salaried

*You should be 80 years* or younger, at the end of the loan tenure.

When you apply for a personal loan, lenders first check your CIBIL Score to determine your creditworthiness. For those who do not have any credit history, or in simpler terms have never borrowed from any lending institute and do not have a credit card, may not have a CIBIL Score. This kind of a borrower can still get a personal loan by submitting income statements, employment proof and several such documents. Alternatively, borrowers can also opt for a joint loan, find a guarantor or considering putting up a collateral like a car or a house.

These measures will help you avail of a personal loan despite a poor CIBIL score. However, make sure that you have sufficient funds for repayment. If not, your credit score will plummet further. For this, you can use the personal loan EMI calculator to know your EMI well in advance and plan your repayment accordingly. As a last resort, you can check to see if you can pledge assets such as jewellery or property to get a personal loan.

A personal loan with low CIBIL score is considered by some lenders in India based on factors such as income stability, repayment capacity, and overall financial profile. This type of personal loan is designed for individuals with limited or weaker credit history who may need financial support in urgent situations. Options such as Emergency loans can help address short-term financial requirements depending on eligibility and lender assessment. Loan terms, including interest rates and approved amount, may vary. Maintaining regular repayments and improving credit discipline over time can support better financial planning and borrowing opportunities.

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