How to Get a Personal Loan with a Low CIBIL Score

Getting a personal loan in India is relatively easy — until your CIBIL score becomes a hurdle. A low CIBIL score can significantly reduce your chances of getting loan approval. But don’t worry. Even if your score is below 650 or even near 550–600, you still have options.

Let’s understand what a low CIBIL score means and how you can still get a personal loan with it.

What is a CIBIL Score?

Your CIBIL score is a 3-digit number ranging from 300 to 900 that reflects your creditworthiness. The higher the score, the better your chances of getting loans or credit cards. A score above 750 is generally considered good, while anything below 650 is seen as risky by lenders.

Is it Possible to Get a Loan with a Low CIBIL Score?

Yes, it is possible — but it’s not easy.

Most banks prefer customers with a strong credit history. But some NBFCs (Non-Banking Financial Companies) and private lenders offer loans even if your credit score is low. They may charge slightly higher interest or offer smaller loan amounts, but if your need is urgent, it can still help.

How to Improve Your Chances of Getting a Loan

If your CIBIL score is low (say, 550 to 650), you can still boost your chances of loan approval by following these practical steps:

1. Apply with NBFCs or Fintech Lenders

NBFCs like Bajaj Finserv, MoneyTap, Nira, and EarlySalary are more flexible compared to traditional banks. Many of them offer instant personal loans with minimal paperwork, especially to salaried individuals.

Some platforms focus more on your current income and employment rather than your past credit behavior.

2. Offer a Guarantor or Co-applicant

Adding a co-applicant with a strong credit profile increases your chances of approval. The lender gets additional assurance that the loan will be repaid, which reduces their risk.

3. Show Stable Income

If you can show stable monthly income, whether from salary or business, the lender might consider your application — even with a low score. Attach income proof like salary slips, bank statements, or ITR returns to strengthen your case.

4. Start with a Small Loan

If your credit score is poor, applying for a big amount might get rejected. Instead, apply for a small personal loan (₹10,000 to ₹50,000). Once you repay it on time, your score improves and bigger loans become easier to access later.

5. Avoid Multiple Applications at Once

Every time you apply for a loan, the lender checks your credit score. Too many such checks (called hard inquiries) can further reduce your score. Be selective — apply only where you’re likely to get approval.

Some Lenders That Offer Loans with Low Credit Scores

Here are a few NBFCs and fintech platforms known for being flexible:

• PaySense

• MoneyTap

• CASHe

• Navi

• KreditBee

Each has different eligibility criteria, but most of them require:

• Indian nationality

• Age 21–60

• Minimum income ₹12,000/month (varies)

Final Tips to Improve Your CIBIL Score

Even after you get a loan, make it a priority to improve your credit health:

• Always pay EMIs on time

• Don’t max out your credit cards

• Keep credit utilization below 30%

• Monitor your credit report for errors

Conclusion

A low CIBIL score doesn’t mean your financial journey has to stop. Yes, you may face more challenges, but with the right strategy, you can still get a personal loan — and even rebuild your credit over time.

Start small, borrow wisely, and make every payment count. Over time, your CIBIL score will improve, and better loan offers will come your way.