A low CIBIL score (typically below 650) can make securing a personal loan feel impossible. Banks hesitate to lend, interest rates seem higher, and rejections pile up—leaving you stressed. But here’s the good news: a low credit score doesn’t mean you’re out of options.
Whether you need funds for an emergency, medical bills, or debt consolidation, this guide will show you proven ways to get a personal loan even with a low CIBIL score.
Why Is a Good CIBIL Score Important for a Personal Loan?
Your CIBIL score is a 3-digit number (300-900) that reflects your creditworthiness. Lenders check it to decide:
✔ Loan approval – Higher score = Better chances
✔ Interest rates – Lower score = Higher interest
✔ Loan amount – Good credit = Bigger loans
A score below 650 is considered risky, making approval tough. But don’t lose hope—there are still ways to get a loan.
6 Smart Ways to Get a Personal Loan with a Low CIBIL Score
1. Apply with a Co-Applicant or Guarantor
If your credit score is low, adding a co-applicant with a strong credit history (like a spouse, parent, or sibling) can boost approval odds. Lenders feel more secure knowing there’s a backup payer.
Tip: Choose someone with a CIBIL score above 750 and stable income.
2. Opt for a Secured Personal Loan
No collateral? No approval. But if you pledge an asset (gold, FD, property), lenders are more flexible—even with a low score.
✅ Gold Loan – Quick approval, lower interest
✅ Loan Against FD – No credit check required
✅ Property-Backed Loan – Higher loan amounts
Related Read: Gold Loan vs Personal Loan: Which Is Better?
3. Approach NBFCs or Online Lenders
Banks have strict rules, but NBFCs (Non-Banking Financial Companies) and fintech lenders are more lenient. They often approve loans for low CIBIL scores—though at higher interest rates.
Top NBFCs for Bad Credit Loans:
- Bajaj Finserv
- Tata Capital
- MoneyTap
- EarlySalary
4. Prove Stable Income & Employment
Lenders want assurance you can repay. If you have:
✔ Regular salary slips (for salaried)
✔ ITR & bank statements (for self-employed)
…your chances improve, even with a low score.
5. Start with a Smaller Loan Amount
Big loan = Big risk for lenders. Instead, apply for a smaller amount (like ₹50,000 instead of ₹5 lakhs). Once approved, repay on time to rebuild credit.
6. Fix Errors in Your Credit Report
Sometimes, your CIBIL score is low due to errors (wrong late payments, outdated info). Check your report for free at:
- CIBIL (www.cibil.com)
- Experian (www.experian.in)
Dispute mistakes to boost your score quickly.
Related Read: How to Check CIBIL Score for Free (Coming Soon)
Alternative Options If Banks Reject Your Loan
If traditional lenders say no, try:
✅ Peer-to-Peer (P2P) Lending – Platforms like Faircent & LenDenClub
✅ Credit Unions & Small Finance Banks – More flexible policies
✅ Borrow from Friends/Family – Interest-free, but handle carefully
Final Tips to Improve Loan Approval Odds
✔ Compare lenders – Use tools like BankBazaar or Paisabazaar
✔ Avoid multiple applications – Each rejection hurts your score
✔ Negotiate interest rates – Some lenders may lower rates if you have a stable income
Bottom Line: Yes, You Can Get a Loan!
A low CIBIL score isn’t the end—it’s just a hurdle. By using co-applicants, secured loans, or NBFCs, you can still get funds when needed.
Next Step: Focus on improving your credit score so future loans come easier! Related Read: Best Tips to Rebuild a Bad Credit Score
