How to get a personal loan with low CIBIL score

When applying for a loan, lenders closely review your CIBIL score, as it reflects your credit history, repayment behaviour, and overall credit usage. Since a personal loan is unsecured, lenders rely heavily on this score to assess your repayment capacity.

A low score often indicates irregular repayments, high credit utilisation, or multiple recent loan applications. While a CIBIL score above 650 is generally considered favourable for personal loan approval, a lower score does not necessarily rule out your chances. Several lenders now offer options designed for borrowers looking for a personal loan with a low CIBIL score.

In such cases, you may receive a smaller loan amount or face a higher interest rate. However, by improving financial discipline, reducing outstanding dues, and choosing lenders that cater to low CIBIL score profiles, you can still access funds when needed. 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. However, if your credit score is low, you might face loan rejections or higher rates. Despite this, it is possible to find lenders who offer personal loans for applicants with a low CIBIL score by considering additional factors like your income stability, employment status, and existing liabilities. For those wondering how to get a loan with low CIBIL score or seeking an online loan without CIBIL checks, some lenders provide flexible options tailored to such needs. If you need a personal loan with bad CIBIL score, it’s advisable to explore these alternatives while working on improving your credit profile for better terms 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.

Your CIBIL score plays a vital role in determining your eligibility for a personal loan and the interest rates you may receive. While a high credit score helps you access better loan offers, those with a poor credit history can still find options like a personal loan for bad CIBIL. Many lenders now offer instant loans with low CIBIL scores, catering to urgent financial needs. Emergency loans for bad credit are designed to provide quick relief even if your credit report isn’t perfect. However, maintaining financial discipline and working on improving your credit profile over time can help you qualify for better loan terms and lower interest rates in the future.

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