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Ways to Get a Personal Loan With a Low Cibil Score

Personal Finance

Do you want a personal loan? Before giving any loan, banks check the creditworthiness of the customer. The credit score is used to assess its worthiness. The credit score helps banks predict your credit behavior. And if your credit score is low, it is highly unlikely that banks will lend you any money.

A personal loan is the most common type of loan distributed by banks. As the loan is unsecured, banks mainly focus on credit scores. Moreover, there are no assets or mortgages to fall back on if the customers default on the loan. 

The Reserve Bank of India has licensed four companies to operate as credit information companies. CIBIL, or Credit Information Bureau (India) Limited, is the most reputed and oldest company among them. 

The CIBIL score starts at 300 and goes up to 900. And if your CIBIL score is low, you will face some difficulties getting a personal loan. 

So, let’s see the required CIBIL score for a personal loan. 

Required CIBIL for Personal Loan: 

As per the leading lenders in the financial domain, your CIBIL score for a personal loan should be at least 720. With this score, you can easily get a personal loan from any bank or NBFC. 

Some banks and lenders also provide personal loans to users with a CIBIL score of 600 to 700. However, the lower your score is, the less money will be approved. Moreover, the bank may also charge a high interest rate on the personal loan for a low CIBIL score.

If your credit score is less than or around 600, the chances are you won’t get a personal loan. So, let’s see the ways to get a personal loan with a low CIBIL score. 

Ways to get a personal loan with a low CIBIL score:

A low CIBIL score for a personal loan is the last thing any bank or NBFC would like to see. Luckily, there are many new fintech platforms and NBFCs that offer loans in the case of a low CIBIL score for a personal loan. However, these platforms charge a high interest rate. 

These are some ways that can help you if you have a low CIBIL score for a personal loan. Let’s see: 

Show income proof to the bank: 

If your credit score is really low, the bank will not be willing to give you a personal loan. But, you can provide some evidence suggesting you can repay the loan on time. And if the bank sees any merit in your claims, they will be more likely to grant the loan. 

For example, the bank may consider your application if you recently received a salary hike or have another income source. So visit the branch personally and talk with the loan manager along with this evidence. While the interest rate may be a little higher, you may receive a personal loan with a CIBIL score of 550. 

Apply for a lower loan amount: 

Applying for a loan of a higher amount with a poor CIBIL score is always rejected. On the other hand, a low CIBIL score for a personal loan means there is an increased risk for lenders. And they won’t be willing to take the risk unless convinced otherwise. 

However, the bank may take the risk if you are applying for a lower amount. Because a lower amount will be easier to pay and timely repayment can increase the CIBIL score. 

Apply with a co-applicant: 

Applying with a co-applicant or guarantor with a high CIBIL score can improve your chances. So, if you want a personal loan but don’t have the required CIBIL score, then, get a co-applicant or guarantor for the loan. 

However, you will need to talk with the other person beforehand. It’s because there are formalities like KYC and other documentation. The benefit of this approach is that if the bank finds the co-applicant or guarantor worthy, your loan will be approved in no time. 

Correct the mistakes in your credit report: 

Banks and other financial institutions sometimes send the wrong information to credit bureaus. Or, the latest information isn’t updated in the credit report. These mistakes can take a toll on your credit health. 

So, it’s important to check your credit score and credit report from time to time. You can check your credit score for free. 

Four factors determine the CIBIL score, each of which holds some weight. 

Payment history30%
Credit Exposure25%
Type of credit and credit duration25%
Other factors20%

Alternatively, check your credit report for any mistakes, like missing details on earlier paid loans. If there is any, report it directly to the credit bureau with proper evidence.

Request the bank to treat your case as NA or NH in the credit report: 

The NA or NH in your credit report means there hasn’t been any credit activity in the last 36 months. So, if your credit report doesn’t show any credit history, talk to the bank and explain the reasons for it. Chances are the bank will give you the loan at a little high-interest rate. 

How to improve your credit score: 

The last and ultimate option to get a personal loan is improving your credit score. Because none of the above methods can guarantee your loan application will get approved with a low CIBIL score. So, ultimately, you will need to increase your credit score anyhow. 

To improve your credit score, start by paying down your previous debts. You can also avoid making late payments and using credit cards to the limit. By keeping great credit habits, your CIBIL score will increase gradually. Till then, you will have to adjust to high-interest lenders. 


A personal loan is the easiest to get, and the borrowers need not offer any collateral. While it is quite tough to get a personal loan with a CIBIL score of 550, it’s not impossible. 

Many lenders like Piramal Finance approve a personal loan with a CIBIL score of 550. All you need are some documents, proof of your eligibility, and the required CIBIL score for a personal loan.