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How to Get a Personal Loan Despite a Low CIBIL Score

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When you apply for a personal loan, the lender pulls up your credit report to check your credit score. If your credit score is high, the chances of your personal loan getting approved are high and vice versa.

If you are worried about your low CIBIL score, you must know that getting a personal loan with a low credit score is difficult but not impossible. In this article, we’ll talk about ways you can get personal loan approvals even with a low CIBIL score.

What is a CIBIL Score?

Your CIBIL score is a reflection of your creditworthiness. It’s a three-digit number ranging from 300 to 900 that tells lenders how responsible you are with your credit cards and loans. The CIBIL score is one of the important parameters lenders consider when making the lending decision.

How can I get a personal loan even with a low CIBIL score?

Getting low credit score loans is possible if you focus more on the positive aspects of your credit profile. Here are a few smart tips to get you started:

  • Showcase your earning potential: If you have a high income or a good future earning potential, it makes you highly capable of repaying the loan. This can get your personal loan application approved despite the low credit score.
  • Apply with a co-signer or a guarantor: If your spouse or a close family member has a high CIBIL score, you can jointly apply for a personal loan. This increases your chances of loan approval.
  • Agree for a higher interest rate: Many lenders offer loans to individuals with a low credit score. However, the catch here is that the loan amount sanctioned is less, and the interest rate is high. If your need is urgent, you can consider this option.
  • Get a secured loan:  Even with a low CIBIL score, you may get a personal loan if you pledge collateral, such as fixed deposits, property, shares, gold, and other assets against it.
  • Start improving your credit health: This cannot be done overnight, but it’s the best way to avoid loan rejections in the future. Improving your credit health is a process that requires discipline and determination. Some of the things you can do to improve your CIBIL score include: paying off your existing debt, changing your spending habits, and making timely EMI payments. These changes go a long way in restoring your credit health.
  • Request for a lower amount of loan: Applying for a low personal loan amount increases your chances of loan approval. A smaller loan amount makes it easier for you to repay it and build your credit score.

What documents are required when applying for a personal loan for a low CIBIL score?

Generally, you need to submit the following documents when applying for a personal loan:

  • Driver’s license
  • Aadhaar Card
  • Passport
  • Address Proof
  • Bank statement for 6 months
  • Salary slip for 6 months

FAQs on Personal Loan for People with Low CIBIL Score

What is the minimum CIBIL score I need to get a personal loan?

A CIBIL score of 750 and above is considered good. However, if you have a score between 600 to 750, you can consider applying for a personal loan. A credit score in this range is neither considered good nor bad. Hence the lender may consider your loan application after carrying out additional credit checks. If your loan is approved, you may be charged a higher interest rate, or you may get an amount lower than requested or

I have never taken a loan or a credit card. Do I have a CIBIL score?

If you have never borrowed and do not possess a credit card, you may not have a credit history. Hence, no CIBIL score. 

How do I check my CIBIL score?

You can check your CIBIL score for free at Fit.Credit. You can also check it on CIBIL’s official website at

What is a good CIBIL score?

A good CIBIL score is between 750 to 900. With this CIBIL score, you can get a personal loan at low-interest rate and good loan terms (discounts on processing charges and pre-closure charges).

What are the benefits of a good CIBIL score?

A good CIBIL score gives lenders the confidence to loan you the money. You can also negotiate loan terms such as interest rate and processing fees with the lender. You may also be pre-approved for a personal loan that is processed instantly with minimal documentation.

How can I secure a personal loan despite a low credit score?

Some of the best ways of securing a personal loan for bad credit are:

  • Apply with a co-signor
  • Highlight your high earnings or earning potential
  • Pledge collateral
  • Restore your credit health
  • Ask for a lower loan amount
  • Settle for a high-interest rate

Should I apply for a personal loan if I have a low credit score?

If you have a low CIBIL score, apply for a personal loan in dire circumstances or when you have exhausted all your savings. However, check the loan terms and interest rate before applying for a personal loan.

How can I restore my credit score?

Your credit score can be restored by rebuilding your credit history. Make timely EMI payments, pay your bills on time and repay your outstanding loan.

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