How to Get a Personal Loan with Low CIBIL Score in India

A low CIBIL score can feel like a dead end when you are in urgent need of money. But the truth is, getting a personal loan with a low CIBIL score in India is possible — if you know where to look and how to prepare.

In this article, we will explore practical ways to get a personal loan even with a poor credit score, the documents you need, and which lenders are most flexible in approving low-CIBIL applicants.

What is a CIBIL Score and Why It Matters

CIBIL (Credit Information Bureau India Limited) score is a 3-digit number ranging from 300 to 900 that represents your creditworthiness. Most banks and NBFCs prefer a score of 750 or above to approve a personal loan.

A low score (below 650) usually means:

• You have missed EMI payments
• You have overused credit cards
• You have multiple loan applications

But many financial institutions now offer personal loans for CIBIL defaulters or borrowers with low scores.

Can You Get a Personal Loan with a Low CIBIL Score?

Yes, while traditional banks may reject your application, many NBFCs (Non-Banking Financial Companies) and digital lenders in India consider other factors like:

1. Your monthly income

2. Current employment status

3. Guarantor or collateral availability

4. Past repayment history (beyond CIBIL)

Tips to Get a Personal Loan with a Low CIBIL Score

1. Apply with NBFCs or Online Lenders: NBFCs like Bajaj Finserv, Tata Capital, and online apps like KreditBee, Nira, or EarlySalary are more flexible in offering loans to people with poor credit.

2. Show Proof of Stable Income: Provide salary slips, bank statements, and ITRs to prove that you can repay the loan despite a low credit score.

3. Choose a Lower Loan Amount: Smaller loan amounts (₹10,000 – ₹50,000) are easier to approve and come with lower risk for the lender.

4. Offer Collateral or a Guarantor: You can apply for a secured personal loan using assets like gold, fixed deposits, or property. Alternatively, applying with a guarantor who has a strong CIBIL score increases approval chances.

5. Improve Your Credit Before Applying: If the loan isn’t urgent, try improving your CIBIL score by:

• Paying off outstanding debts
• Reducing credit card usage
• Avoiding multiple loan applications at once

Best Lenders Offering Personal Loans with Low CIBIL Score

Here are some NBFCs and platforms in India that may approve your loan even with a low credit score:

Documents Required

To apply for a personal loan with a low CIBIL score, you will typically need:

• PAN Card and Aadhaar Card
• Passport-size photograph
• Salary slips (last 3 months)
• Bank statements (last 6 months)
• Address proof (utility bills, rent agreement, etc.)

FAQs

Q1. What is the minimum CIBIL score required for a personal loan?

Ans. Most banks require 750+, but NBFCs and fintech platforms may offer loans with scores as low as 600.

Q2. Can I get a loan if I have a CIBIL score below 500?

Ans. Yes, but you'll likely need a guarantor, collateral, or steady income proof. Interest rates may be higher.

Q3. Will applying for multiple loans reduce my CIBIL score?

Ans. Yes. Each application is a “hard inquiry” that can temporarily reduce your score.

Q4. What’s the difference between secured and unsecured personal loans?

Ans. Secured loans require collateral (like gold or FDs), while unsecured loans do not. Secured loans are easier to get with a low CIBIL score.

Conclusion