How to Get a Personal Loan
Getting a personal loan in India is one of the easiest ways to manage urgent financial needs — whether it’s for education, medical expenses, travel, or home renovation. However, if you have a low CIBIL score, the process becomes tricky. A low score usually indicates poor credit behavior, making lenders hesitant.
But don’t worry! In 2025, several banks, NBFCs, and fintech platforms in India now offer personal loans even to borrowers with a low credit score, provided you follow the right approach. Let’s understand how you can get approved despite having a low CIBIL score.
What is a CIBIL Score and Why It Matters
A CIBIL score (Credit Information Bureau India Limited score) is a 3-digit number ranging from 300 to 900 that represents your creditworthiness.
- 750 & above: Excellent — easy loan approval
- 650–749: Average — moderate chances of approval
- 550–649: Low — limited options
- Below 550: Poor — high rejection risk
Most banks in India prefer borrowers with a CIBIL score above 700, as it assures them of lower credit risk. But if your score is below that, don’t panic — you still have options.
Reasons for Low CIBIL Score
Before applying for a loan, it’s important to know why your CIBIL score is low:
- Missed or delayed EMI payments
- High credit card utilization
- Multiple loan applications in a short time
- Defaulted loans
- No credit history (new to credit system)
Understanding the cause helps you plan corrective actions and choose the right lender.
How to Get a Personal Loan with a Low CIBIL Score in India
1. Apply with a Co-Applicant or Guarantor
One of the simplest ways to get approved is by adding a co-applicant (such as a family member with a good CIBIL score). The lender considers their score for risk assessment, which increases your chances of approval.
Tip: Choose a co-applicant with a stable income and a credit score above 750.
2. Show Strong Income Proof
If your monthly income is high and stable, many lenders may overlook your low CIBIL score. Providing salary slips, ITR, and employment proof can strengthen your case.
Lenders see you as capable of repaying on time — even if your past record wasn’t perfect.
3. Opt for NBFCs or Fintech Lenders
Traditional banks like SBI or HDFC are strict with CIBIL requirements. But NBFCs (Non-Banking Financial Companies) and digital lending platforms like:
- MoneyTap
- PaySense
- Navi
- KreditBee
- CASHe
often offer loans for low CIBIL borrowers, sometimes even without hard credit checks.
These platforms rely on income, job stability, and transaction history instead of only credit score.
4. Apply for a Smaller Loan Amount
If your credit score is low, applying for a small personal loan (₹25,000–₹1 lakh) increases the chance of approval. Once you repay it successfully, your credit history improves — helping you qualify for larger loans in the future.
5. Offer Collateral or Security
Though personal loans are typically unsecured, some lenders might approve your loan if you pledge collateral, like:
- Fixed deposit (FD)
- Gold
- Life insurance policy
This turns your loan into a secured personal loan, reducing the lender’s risk and improving your approval chances.
6. Check Your CIBIL Report for Errors
Sometimes, a low CIBIL score happens due to incorrect reporting — like outdated accounts, wrongly marked defaults, or closed loans shown as active.
You can get your free CIBIL report from www.cibil.com and file a dispute to correct errors. Once updated, your score may rise quickly.
7. Maintain a Good Relationship with Your Bank
If you’ve had a long-term savings account or salary account with a bank, approach them first. Banks often give preferential treatment to existing customers with stable transaction records — even if your credit score isn’t great.
Improve Your Credit Score for Future Loans
Even if you get a loan with a low score, you should start improving it immediately.
Here’s how:
- Pay EMIs and credit card dues on time
- Avoid multiple loan inquiries
- Keep your credit utilization below 30%
- Maintain a healthy mix of credit (secured + unsecured)
- Review your CIBIL report every 6 months
Within 6–12 months, consistent efforts can increase your score by 100–150 points.
Documents Required for Personal Loan
Even for low CIBIL loans, you must provide:
- Aadhaar Card / PAN Card
- Address Proof (Utility Bill, Rent Agreement)
- Latest 3–6 Months Salary Slips
- Bank Statements
- Passport-size Photographs
Some lenders may also ask for employment ID or collateral proof (if applicable).
Example: Personal Loan for Low CIBIL from NBFCs
| Lender Name | Minimum CIBIL Score | Loan Amount | Interest Rate (Approx.) | Tenure |
|---|---|---|---|---|
| KreditBee | 600 | ₹10,000 – ₹2 lakh | 16% – 30% | 3–24 months |
| PaySense | 580 | ₹5,000 – ₹5 lakh | 15% – 26% | 3–60 months |
| MoneyTap | 620 | ₹3,000 – ₹5 lakh | 13% – 24% | Flexible |
| Navi | 650 | ₹10,000 – ₹20 lakh | 9.9% onwards | Up to 72 months |
(Rates vary based on income, location, and profile.)
Final Thoughts
Having a low CIBIL score doesn’t mean the end of your financial options. With the rise of digital lending and fintech innovations in India, many platforms now focus more on your income and repayment ability rather than just credit score.
By choosing the right lender, applying strategically, and improving your credit habits, you can easily get a personal loan with a low CIBIL score in 2025 — and also build a stronger financial profile for the future.
Shree
Founder & Content Research Analyst – FreeJobAlertt.com
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