Personal Loan with Low CIBIL Score
19 Nov 2021

Personal Loan with Low CIBIL Score

How to get personal loan with low CIBIL score

Key Takeaways

  • Personal Loans are unsecured loans that require no collateral.
  • Lenders verify your credit history when you apply for Personal Loan.
  • A low credit score reduces your chances of securing a Personal Loan.
  • You can get a Personal Loan with a low CIBIL score by showing regular income sources.
  • Your loan application may be considered if your fund requirements are low or if a guarantor co-signs your loan.

A Personal Loan gives you access to large sums of money. Lender offer loans after assessing your repayment abilities and your credit repayment behaviour. Today, lenders can evaluate your creditworthiness through your credit score. While you need to provide security or collateral for secured loans, Personal Loans are unsecured loans. Here, your credit score serves as a source of security for the lender. But what happens when your credit score is low? Keep reading to find out how to get Personal Loan with low CIBIL score.

Personal Loan and CIBIL Score

Ranging from 300 to 900, the CIBIL or credit score is a 3-digit numeric indicator of your credit history. It reflects your credit handling behaviour like loan repayment, repaying credit card dues, etc. A high credit score indicates that you have been repaying debts on time. When you have a higher CIBIL score, the chances of the lender approving your loan increase considerably. However, lower CIBIL scores can impact your loan approval chances significantly.

Personal Loan with Low CIBIL Score

A low credit score can reduce your Personal Loan or other debt securing chances. A credit score greater than 600 is usually a good credit score. A CIBIL score below 600 puts your loan application in jeopardy. A bad credit score reflects discrepancies in debt repayments, and lenders typically reject urgent loans for bad credit. However, it is not impossible to obtain Personal Loans with low CIBIL score. That said, the Personal Loan interest rates offered on loans with low credit scores, may be higher.

How to Get Personal Loan with Low CIBIL Score?

Besides the CIBIL score, the lender considers your age, employment status, and net monthly income. Here are some ways to obtain a low CIBIL Score Personal Loan.

Show reliable income sources

Lenders essentially want assurance that they will get their money back. Whether you are a salaried professional or a self-employed individual, if you receive a regular income, you may be able to negotiate with lenders to prove your ability to repay the loan. A reliable income source may convince lenders to consider your loan application.

Apply with a guarantor

Lenders are more likely to approve Personal Loans with low CIBIL scores for applicants who can get a guarantor to co-sign the loan. A guarantor with an excellent credit score and a stable income source helps improve your chances of loan approval.

Apply for low-value loans

Some online lenders would consider approving Personal loans of smaller amounts. If your fund requirements are low, you may be deemed eligible despite your low credit score.


Personal Loans are versatile unsecured and collateral-free loans with no restrictions on the end usage of the loan amount. Your CIBIL scores provide lenders assurance of your loan repayment capabilities. Ensure you show a good credit score or take measures to improve your score instead of applying for a Personal Loan with low CIBIL score.

Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page. Also, you can open savings account with us.

*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.