How to Get Personal Loan with Low CIBIL Score?

How to Get Personal Loan with Low CIBIL Score?

Have a low CIBIL Score and need a Personal Loan urgently? Good news is you can avail a bank loan to meet your credit eligibility despite a low score or no credit history. The bad news however is it might not be as straightforward, and you would first require proving your repayment capacity to the lender.

Your credit score is a first point-of-check for assessing your creditworthiness. A good score is often considered as a measure of good financial prudence, ability of repaying loans in time, low risk profile, and thus suitable measure for lending unsecured loans. Almost all banks and NBFCs list a minimum Credit Score guideline under Personal Loan Eligibility.

Whether your credit score dipped recently or your report is flagged due to past credit karma or for that matter for no fault of yours: but, due to a friend or an acquaintance who misused your card or defaulted on a joint loan, your credit report is flagged and you should take charge to improve it.

Let’s find out some of the easiest ways to get a Personal Loan with low CIBIL score:

Show income capability: Prove you can support EMIs

A lender wants a quality borrower. They want to lend to those who can repay. A low score is always not because of repayment issues. So, establishing a stable income source is one of the best ways to prove your repayment capacity to the bank.


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You must have all income related documents handy. You should communicate salary appraisal, additional sources of income such as rental income, freelancing etc to the lender and you may be accepted as an eligible prospect for the loan. The only demerit in this case could be a bit higher Rate of Interest for Personal Loan.

Alternatively, you can opt for a secured loan such as loan against pre owned car or your bank FD or credit card. The rate of interest offered will be lower for a secured loan. Another option is Home Loan Overdraft and Top Up to existing loan. There are several loan products and it is always recommended to use a professional service to find the best suitable product. Always choose the most affordable credit option.

Add a shied: Welcome a co-applicant or guarantor

Another seamless way to get a hassle free Personal Loan with low score is adding up a co-applicant or a guarantor to the loan application. In this case, good credit history and employment/income status of the co applicants/guarantor will reduce risk for lender and thus your application will be accepted despite low score or poor credit history. However the rate of interest could still be higher than a person who has high credit score.

Take a step back & borrow less

Another effective way to get an approval for a loan is by reducing the amount of loan. It is always easier to get approval for smaller amounts than big ticket loans, when you have poor or no credit history. Gradually you build a trust. Once you begin the repayment cycle and show your credit worthiness by serving EMIs in time, you may soon qualify for a top up or additional loan within next 6 months. Thus, go slow but go steady to build your credit rating again.

Raise dispute with credit bureau

There are times when you score is low for no fault of yours. The score is low because of misreporting or error in report. The worst part is, you get to know about the same only when you needed the loan and lender had rejected the application due to low score. It might come as a shock but the fact of the matter is, you need to get this rectified to avail the loan at the best terms and rate.

So without a further adieu, raise a dispute with CIBIL. This can be done online or offline. The same may take 30-40 days to reflect in your report. Once the error is rectified your score will be restored and you will be able to borrow the desired loan at desired rate. Also, do make it a regular habit to keep a check on your credit report on a regular basis.

Communicate & Negotiate with lender

After you have prepared your case with a guarantor and required income documents it’s time to negotiate with the lender. Though negotiation will not improve your eligibility, but will ensure that you get the best rate for the loan of your choice.

Ask questions and understand the terms & conditions. Opt for prepayment and repayment ease. Know about processing fee, penal charges and more.

Keeping tab on all these points will ensure that you get the best Personal Loan despite a fair credit score. You may use Personal Loan EMI Calculator before talking to the lender. Know how different loan, rate & tenor combinations impact on the overall cost of the loan.


✅ Can I get Personal Loan with low CIBIL score?

To avail of a Personal Loan, lenders want you to support a CIBIL score of 700 or above. However this is the criteria for obtaining the best rate of interest. You can certainly avail a loan at a lower than this level, however the rate of interest will be higher. The bank may also ask for collateral or guarantor for the same. Other eligibility factors for Personal Loan are Age, Income & other credit accounts.

✅ Is it possible to remove my name from CIBIL settlement?

Yes. However, you should contact the lender and negotiate in return of repayment of the amount due. The case can be settled out of the court but the lender should agree to report the settlement to the court and withdraw the lawsuit. As the lender reports the same to court, the same will be reported to the Bureau and your report will soon be updated.

✅ Why my Personal Loan application was rejected despite a fair credit score?

Credit score is only one of the factors for approving Personal Loan application. Other factors such as age, monthly income, credit utilisation ratio and debt burden ratio also impact the lender’s decision. So make sure, other factors are also supportive if you need a loan. It is recommended to use a professional help such as of a loan aggregator like MyMoneyMantra to help you find a suitable lender.

✅ Do I need additional documents for Personals Loan with low score?

With poor credit score you may be required to submit additional documents like proof of stable employment or an employment certificate from the employer. However not all applicants are required to submit the same. Generally you need to submit regular documents that will include KYC documents viz identity proof, income proof and address proof. Thus, Aadhar, Pan, Utility bills, & last three months’ salary slips, bank statement for past 6 months, Form 16, ITR, etc are documents that you will require for Personal Loan.

✅ How to apply for Personal Loan without a credit score?

The bank asks for credit score to assess your past credit history and creditworthiness. However, those who do not have a credit score may still be eligible for Short Term Personal Loans Or Secured Loans. Kindly use professional advice for finding a suitable Personal Loan without any hassle.

✅ Can I get Personal Loan with 600 Credit Score?

You can get Personal Loan from bank, NBFC and various financial institutions. Different lenders have different eligibility criteria. A public bank will have more rigid eligibility requirements than an NBFC. Use a loan aggregator’s service to compare different Personal Loans and choose the perfect match available in the market.


Also Read: Which Is Better for Emergency: Credit Card Loan Or Personal Loan?


To apply online for Best Home Loan in India, Secured Loans and Unsecured Loans, visit MyMoneyMantra, the leading online lending marketplace that offers financial products from 100+ Banks and NBFCs. We have served 7 million+ happy customers since 1989.


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Category: Personal Loan