How to Get a Personal Loan with Low CIBIL Score

Low CIBIL Score

Discover ways to get a personal loan with a low CIBIL score in India, with expert tips for improving your creditworthiness and accessing financial assistance.

Life is a rollercoaster of unpredictability, often throwing unexpected financial challenges our way. Whether it’s an unforeseen expense or a sudden event demanding a substantial sum of money, the need for quick financial solutions is ever-present. In such moments, a personal loan emerges as a lifeline, providing a bridge to navigate through turbulent times. However, securing a personal loan is not a one-size-fits-all scenario; it involves meeting specific conditions set by lending institutions. Among these conditions, maintaining a healthy CIBIL score stands out as a crucial determinant of eligibility.

Understanding the Importance of CIBIL Score:

The CIBIL score, ranging from 300 to 900, acts as a key indicator of an individual’s creditworthiness. Lenders rely on this score to assess an applicant’s credit attitude and overall financial management skills. To even be considered for approval, a CIBIL score must typically be equal to or exceed 750, a threshold set by most lending entities. This score becomes the initial focal point for lenders as soon as they receive a personal loan application.

Factors Lowering Your CIBIL Score:

Before delving into strategies to improve a low CIBIL score, it’s crucial to understand the factors that can contribute to its decline. Several elements can negatively impact a credit score, including:

  1. Poor Credit Utilization Ratio: Going beyond the credit limit on credit cards.
  2. Multiple Loans in a Short Period: Increases the number of hard inquiries, potentially reducing the credit score.
  3. Missed or Late Payments: Delayed or missed installment payments, non-payment of other financial obligations.
  4. Unhealthy Credit Mix: Having a higher number of unsecured loans compared to secured loans.
  5. Errors in the Credit Report: Inaccuracies in the credit report should be corrected promptly to improve the credit score.

While a higher credit score undoubtedly opens doors, there are financial lenders, such as ZapMoney, that extend their services to individuals with lower credit scores.

Strategies for Secure a Personal Loan with Low CIBIL Score:

For those grappling with a less-than-ideal credit score, there are alternative approaches to secure a personal loan. Here’s a comprehensive guide:

  • Prove a Good Income for Timely EMI Payments:

   Demonstrating a recent pay increase or an additional income source can persuade lenders to approve a personal loan application, even with a poor CIBIL score. Highlighting a steady income and job security enhances the chances of approval, although it might come with a higher interest rate.

  • Choose Fintech Digital Lenders and NBFCs:

   Traditional banks and major non-bank financial institutions (NBFCs) may be hesitant to approve personal loan applications with a low credit score. However, modern NBFCs and Fintech lenders specialize in offering high-interest personal loans to borrowers with less-than-perfect credit histories.

  • Secure a Guarantor or Apply with a Co-Applicant:

 Involving a co-applicant or having a guarantor with a respectable CIBIL score significantly boosts eligibility for a personal loan. The co-applicant’s financial stability and credibility contribute to an increased likelihood of approval. However, it’s essential to remember that the co-applicant becomes responsible for loan repayment if the primary borrower is unable to meet the obligations.

  • Examine the Credit Report for Inaccuracies:

 Regularly checking the credit report for errors related to identification, financial information, or repayments is crucial. Rectifying these mistakes can lead to an improvement in the credit score, increasing the chances of approval for a personal loan without a CIBIL check.

Documentation Requirements for Personal Loan with Low CIBIL Score:

The documentation process for obtaining a personal loan with a low CIBIL score is streamlined. The required documents include:

  • Verified PAN number.
  •  Ensuring that the phone number is linked to the Aadhar card for KYC verification.
  • Submission of a well-lit, crisp selfie.

Depending on the individual’s profile, additional documentation may be necessary, such as proof of address and bank statements.

Valid documents for proof of address include:

  • Aadhaar Card
  • Valid Indian Passport
  • Voter ID
  • Valid Driver’s License
  • Utility bills (electricity, water, gas) dated within the last 60 days

Proof of income, if required, involves providing the last three months’ bank statements, highlighting salary credits.

Points to consider before getting a Loan with Bad Credit:

While exploring the various risks associated with personal loans, there are additional factors to consider when dealing with bad credit:

  • Higher Costs with Low Credit Score:

   The unfortunate reality is that applying for a loan with a low credit score results in higher interest rates compared to those with better credit. Lenders factor in the credit score to assess creditworthiness, offsetting perceived risk with increased costs.

  • Beware of Predatory Lenders:

   Individuals with poor credit scores are often targeted by predatory or unlawful lending practices. These can manifest as aggressive communication, promises of guaranteed approval, and loans with exorbitant interest rates. Borrowers with poor credit and significant high-interest debt are particularly susceptible, necessitating caution and due diligence.

  • Add-On Costs in the Fine Print:

 Before applying for a loan, thoroughly review the terms and conditions to understand every cost associated with the loan. Hidden fees or add-on costs can substantially increase the overall expense. Reading the entire loan agreement is essential, paying close attention to the interest rate structure and ensuring clarity in the annual percentage rate (APR).

Can I get a personal loan without a CIBIL Score?

When applying for a personal loan, lenders typically rely on the CIBIL score to determine creditworthiness. However, individuals with no credit history, or those who have never borrowed from a lending institution and lack a credit card, may not have a CIBIL score. In such cases, obtaining a personal loan is still possible by providing alternative documents such as income statements, employment proof, or opting for a joint loan. Additionally, finding a guarantor or offering collateral, such as a car or property, are viable options.

Ensuring Adequate Finances for Repayment:

While alternative approaches make it feasible to obtain a personal loan despite a low CIBIL score, it’s imperative to ensure there are sufficient funds for repayment. Utilizing tools like the Personal Loan EMI Calculator allows individuals to determine their equated monthly installment (EMI) well in advance, facilitating effective repayment planning.

As a last resort, individuals can explore pledging assets like gold or real estate to secure a personal loan. However, a thorough understanding of the associated terms and conditions is crucial to make an informed decision.


In the dynamic landscape of personal finance, a low CIBIL score doesn’t have to be a roadblock to obtaining a personal loan. By adopting strategic approaches, individuals can navigate through financial challenges, secure the funds they need, and work towards rebuilding their creditworthiness. From proving a steady income to exploring alternative lenders and meticulous documentation, the journey to securing a personal loan with a less-than-ideal credit score is paved with possibilities. As borrowers embark on this journey, it’s essential to weigh the associated costs, be wary of predatory lending practices, and ensure a comprehensive understanding of the loan terms. With diligence and informed decision



The ZapMoney app makes personal finance easy, accessible, and affordable. The App is available on Google Play Store and App Store for download, allowing you to sign up and access easy personal loans. ZapMoney is powered by Monexo Fintech Private Limited which is a registered NBFC-P2P.
Toggle Content
Toggle Content
Toggle Content
Toggle Content

No Credit History?
No Problem

We are here to help you Build and improve your credit score

We are here to help you
Build and improve
your credit score