How to Get a Personal Loan with a Poor Credit Score

How to Get a Personal Loan with a Poor Credit Score

With a poor credit score, your routes to a loan are a smaller amount, a secured loan, a co-applicant or a guarantor, each with a risk. Below the lender's criterion, improve the score first.
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In summary

A poor credit score narrows your options, but it does not close them all. For a Bajaj Finance Personal Loan, a CIBIL score of 650 or higher is a listed criterion, and no collateral or guarantor is required.


  • Just above the criterion, a smaller amount can help.
  • Secured loans put an asset at risk.
  • Co-applicants and guarantors take on your risk.
  • Irfan, with a score of 657, pays an equated monthly instalment (EMI) of Rs. 5,755 on Rs. 1.35 lakh over 30 months.

Score above the criterion? Check your loan offer with your phone number and a one-time password (OTP) → apply online → receive funds within 24 hours* of approval.

What are your options with a poor credit score?

With a poor credit score, you have 4 routes, each with a trade-off. The table compares them.


RouteWhy it can helpRisk
Smaller amount, if your score meets the criterionA smaller instalment fits your incomeThe need may not be fully met
Secured loanAn asset lowers the lender's riskYou can lose the asset if you default
Co-applicant, where the lender allows oneA second income and record are assessedBoth share every EMI and both scores are affected
Guarantor, where the lender asks for oneSomeone backs your repaymentThe guarantor must repay if you default

Last updated: 22nd October, 2026


A guarantor is not a co-borrower: they repay only if you default. A co-applicant shares every EMI from the start.

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When should you improve your score first?

Improve your score first if it is below 650, since applying with a poor credit score below the criterion adds an enquiry without a likely approval. Six months of on-time payments and low card balances is a practical start. Never pay an advance fee to anyone who promises a loan whatever your score. Regulated lenders do not ask for one.


Worked example: Irfan in Rampur

Irfan is 30 and works as a salaried sugar factory supervisor in Rampur. He earns Rs. 52,000 a month. His score of 657, a poor credit score just above the criterion, follows a missed card payment in 2025. He borrows Rs. 1.35 lakh for a family medical cost despite the poor credit score, at an illustrative 20% per annum.


EMI = P × R × (1 + R)^N ÷ [(1 + R)^N − 1]. P is the loan amount in rupees, R is the annual rate divided by 12 and by 100, and N is the tenure in months. The formula spreads the principal and interest into equal monthly payments, so early EMIs carry more interest and later ones more principal. All figures are rounded to the nearest rupee.

TenureMonthly EMI (Rs.)Total interest (Rs.)EMI as share of salary (%)
18 months (1.5 years)8,74322,37516.8
30 months (2.5 years)5,75537,65011.1

Last updated: 22nd October, 2026


The 30-month option lowers the EMI by Rs. 2,988 but adds Rs. 15,275 in interest. The processing fee on Rs. 1.35 lakh is up to Rs. 5,576. Irfan picks 30 months (2.5 years), since a 16.8% EMI share would strain his budget and risk another missed payment that would deepen his poor credit score.


What can delay approval: a CIBIL score below 650 or existing EMIs that take up a large share of your income. Names or addresses that do not match across documents, and more than one loan application in the same month, can also slow it down.


Above the criterion despite a poor credit score? With a Bajaj Finance Personal Loan, you can borrow Rs. 40,000 to Rs. 75 lakh, subject to eligibility. Check your loan offer with your phone number and a one-time password (OTP) → apply online → receive funds within 24 hours* of approval.

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What are the eligibility criteria and documents required?

A poor credit score below the criterion makes approval unlikely. To be eligible for a Bajaj Finance Personal Loan, you need to meet the criteria listed below:


CriterionRequirement
NationalityIndian
Age21 years to 80 years.
Employed withPublic, private, or multinational companies (MNCs).
CIBIL Score650 or higher.
Customer profileSelf-employed or Salaried

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

Last updated: 22nd October, 2026


Meeting these criteria does not guarantee approval, which depends on eligibility, verification and credit assessment. No collateral or guarantor is required.


You may need the following documents, subject to your profile and application:


Document categoryAccepted options
KYC proofAadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register/ NREGA job card
Identity proofPAN card, Real-time image / photograph
Employment proofEmployee ID card, Letter of Allotment of Accommodation Issued by Employer
Income proofSalary slips — last 3 months, Bank account statements — last 3 months
OthersPension order, Utility bill, Phone bill, Piped gas bill, Property / Municipal tax receipt

Not every applicant needs every document. Confirm the final list of required personal loan documents during your application.

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What interest rate and charges apply?

Bajaj Finance interest rates and charges on a Personal Loan, subject to applicable terms and customer eligibility, are listed below:


ChargeAmount
Interest rate10% to 30.5% per annum, subject to applicable terms and customer eligibility
Processing feeUp to 4.13% of the loan amount, inclusive of applicable taxes
Bounce chargesRs. 700 to Rs. 1,200 per bounce
Penal chargeUp to 36% per annum on the overdue instalment
Part-prepayment (Term Loan)Up to 4.72% of the principal prepaid, inclusive of applicable taxes
Foreclosure (Term Loan)Up to 4.72% of the outstanding principal, inclusive of applicable taxes
Part-prepayment (Flexi Dropline and Flexi Hybrid Loans)No charge
Flexi facility chargeRs. 1,999 to Rs. 18,999, inclusive of applicable taxes
Annual maintenance (Flexi Dropline Loan)Up to 0.295% of the Dropline limit
Annual maintenance (Flexi Hybrid Loan)Up to 0.472% in the initial tenure; up to 0.295% in the subsequent tenure

Last updated: 22nd October, 2026

*Terms and conditions apply.


Charges are disclosed in the applicable product information and loan documents, so read your Key Fact Statement before you accept. Add the processing fee to the interest when you compare offers, and see the personal loan interest rates and charges page for details.

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When should you not borrow at all?

Do not borrow with a poor credit score if the EMI would leave no margin, or if the only lender willing to lend is not regulated by the Reserve Bank of India. The table compares the options.

SituationBetter optionTrade-off
Score below 650Improve it for 6 months firstThe need waits
Urgent small costSavings or family helpSmaller buffer
Unregulated lender offering a loanDo not borrowNone
Score above the criterion and EMI fitsSmaller personal loanInterest and a processing fee

Last updated: 22nd October, 2026


Choose an EMI you can always pay. A missed payment deepens a poor credit score, while on-time payments ease it.

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How do you apply?

You apply for a Bajaj Finance Personal Loan online in five steps:

  1. Check loan eligibility: Enter the required loan amount and repayment period, then click "CHECK LOAN OFFER".
  2. Enter personal details: Enter personal, financial and employment details to receive a personalised offer.
  3. Loan offer: Review the offer details and adjust the amount or tenure to suit the applicant's needs.
  4. KYC verification: Complete KYC and verify bank details.
  5. Talk to loan specialist: The application is submitted and an executive contacts the applicant about the next steps.

The process may differ for new and existing customers, and some customers may need to provide additional documents. At the offer step, choose a smaller amount and an EMI you can always pay.

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Key offerings: 3 loan types

  • Flexi Hybrid Loan
  • Flexi Dropline Loan
  • Term Loan

  • Withdraw and prepay – no extra charges
    You can withdraw from your limit and prepay as many times as you want, without extra charges.

  • Instalment pattern
    You can pay interest-only EMIs for up to 36 months, after which, the EMI will consist of both, the principal and the interest. EMI is applicable only on the withdrawn amount.

  • Flexi facility charges
    Flexi facility charges applicable based on your loan amount.

  • Withdraw and prepay – no extra charges
    You can withdraw from your limit and prepay as many times as you want, without extra charges.

  • Instalment pattern
    Fixed EMIs that cover both the principal and interest on the loan amount you withdraw.

  • Flexi facility charges
    Flexi facility charges applicable based on your loan amount.

  • Amount disbursed in one go
    The entire loan amount is disbursed at the start.

  • Instalment pattern
    Fixed EMIs that cover both the principal and interest.

  • Flexi facility charges
    No Flexi facility charges.

Personal loan interest rate and applicable charges

Type of fee

Applicable charges

Rate of interest per annum

10% to 30.5% p.a.

Processing fees

Up to 4.13% of the loan amount (inclusive of applicable taxes).

Flexi Facility Charge

Term Loan – Not applicable

Flexi Loans –Up To Rs 1,999 To Up To Rs 18,999/- (Inclusive Of Applicable Taxes)

Will be deducted upfront from loan amount.

Bounce charges

Rs. 700 to Rs. 1,200/- per bounce

“Bounce charges” shall mean charges for (i) dishonor of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonor of payment mandate or non-registration of the payment mandate or any other reason.

Part-prepayment charges

Full Pre-payment:

  • Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment

  • Flexi Term (Dropline) Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount, as on the date of full prepayment.

  • Flexi Hybrid Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount, as on the date of full prepayment.

Part Pre-payment

  • Up to 4.72% (Inclusive of applicable taxes) of the principal amount of Loan prepaid on the date of such part Pre-Payment.

  • Not Applicable for Flexi Term (Dropline) Loan and Flexi Hybrid Term Loan.

Penal charge

Delay in payment of instalment(s) shall attract Penal Charge at the rate of up to 36% per annum per instalment from the respective due date until the date of receipt of the full instalment(s) amount.

Stamp duty (as per respective state)

Payable as per state laws and deducted upfront from loan amount.

Annual maintenance charges

Term Loan: Not applicable

Flexi Term (Dropline) Loan:

Up to 0.295% (Inclusive of applicable taxes) of the Dropline limit (as per the repayment schedule) on the date of levy of such charges.


Flexi Hybrid Term Loan:

Up to 0.472% (Inclusive Of Applicable Taxes) Of The Dropline Limit During Initial Tenure. Up to 0.295% (Inclusive Of Applicable Taxes) Of Dropline Limit During Subsequent Tenure

Credit guarantee scheme feeUp to 1.18% p.a. (pro-rated daily till 31st March) (inclusive of all applicable taxes) of the loan amount
Credit guarantee scheme renewal feeUp to 1.18% p.a. (inclusive of all applicable taxes) on the outstanding loan amount as on April 01 of the subsequent Financial Year.
*Renewal Fee to be collected only for 3 subsequent financial years.
 
**If the Remaining Tenure is less than 12 months, the CG Fee in subsequent years shall be charged prorated.

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Frequently asked questions

Options

Risks

Can I get a personal loan with a poor credit score?

It depends on how poor and on the lender. Bajaj Finance lists a CIBIL score of 650 or higher as a criterion, so a score below it makes approval unlikely. Just above it, a smaller amount with an EMI that fits your income gives you a stronger chance with a poor credit score.

No. A guarantor repays only if you default, while a co-applicant shares responsibility for every EMI from the start, and both of their credit records are affected. A Bajaj Finance Personal Loan needs no guarantor. Ask anyone backing a loan for someone with a poor credit score to understand the full risk first.

A secured loan puts the pledged asset, such as gold or a deposit, at risk if you miss repayments, since the lender can sell it to recover dues. It can help with a poor credit score, but only if you are confident you can pay every EMI. Read the Key Fact Statement before pledging anything.

Clear overdue amounts, pay every EMI and card bill on time, keep card balances well below the limit and check your report for errors. Lenders report every 15 days since January 2025, so on-time payments show sooner. No step guarantees a set increase in a poor credit score, so start early.

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Disclaimer

Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.
For customer support, call Personal Loan IVR: 7757 000 000