A personal loan is an unsecured credit and one of the easiest loans to apply for. It does not need exhaustive documentation like home loans. Moreover, personal loans can be put to any end-use, like taking a vacation abroad, meeting a medical emergency, as a down-payment for a home loan, or even for a wedding.  The terms and conditions of a personal loan are also easier and simpler to understand.  

Being unsecured loans, the amount approved on personal loans are smaller in comparison to a secured loan like a home loan or a vehicle loan.  Also, this is the reason why lenders are quite strict that an individual meets all the criteria for availing a personal loan.  

Conditions to be fulfilled while availing a personal loan

Meet a Minimum Debt to Income Ratio: Lenders look for a comfortable debt to income ratio so that they are assured of prompt repayments. The ideal debt-to-income ratio is between 30-40%, which means that not more than 30-40% of your income can be utilized in servicing the loans/paying EMI’s. So, if you are already at levels closer to the ideal ratio, then you will be approved for a smaller personal loan amount.  

Proper Documentation: As it is an unsecured loan, the only basis on which the loan is approved is on the basis of your documents. The documents required are income/ salary proof, 3 months’ bank statement, address proof, Aadhaar, etc., to get you an approval on a personal loan.  

Good Credit Score:  A good credit score is a mandatory requirement to avail any loan, more so an unsecured loan.  Generally, lenders look for a credit score above 700 when it comes to personal loan approvals as they can be assured of prompt repayments.  Not all lenders may come forward to lend to individuals with lower credit scores, or it may not be on favorable terms. 

We have put forward a list of the best personal loans that are available to individuals with a credit score in the range of 600-700. They are: 

  1. HDFC Bank Personal Loan 

HDFC Bank is one of the premier banks in India with a wide variety of credit products to cater to all your needs. It offers personal loans to individuals with a credit score in the range of 600-700. The main features of the loan are: 

  • Easy Documentation with Door Step Service 
  • Faster processing and approvals 
  • Maximum tenure allowed is 5 years  

Documents required  

  • Application form accompanied by Cheque for Processing Fee 
  • ID Proof 
  • For Salaried Applicants: Salary Slip for 3 months with bank statement for 3 months which reflect salary credit 
  • For Self Employed Applicants:  Audited financial documents for previous 2 years, bank statement for 6 months, and proof of office address 
  • Address Proof  

The Rate of Interest and Processing Fees 

Interest Rate: 10.50% - 21.00% p.a 

Processing fee: Up to 2.50% of the loan amount subject to a maximum of Rs.25,000

  1. RBL Bank Personal Loan 

RBL Bank is one of the oldest private sector banks in India, offering a wide range of banking products and services. The main features of its Personal Loans are: 

  • Easy and quick documentation 
  • Collateral free loan amount of up to Rs.20 lakhs
  • Flexi repayment options 
  • Hassle-free approvals and disbursal 
  • Maximum Tenure of 5 years 

Documents Required  

  • PAN Card 
  • ID Proof 
  • 3 months’ bank statement and 2 months’ pay slip/income statement 
  • Current Address Proof (required if Aadhaar card doesn’t have a current address) – rent agreement, Utility bills, DL, passport, voter id 

The Rate of Interest and Processing Fee 

The rate of Interest – 14% - 23% per annum

Processing Fee – Up to 3.5% of the loan value as a one-time processing fee

  1. Opta Credit Personal Loan 

Opta Credit is a new-age company that looks at blending technology with innovative lending practices to bring credit to all those who need it and are eligible. The features of its Personal Loan are: 

  • Loan amount starting from Rs.20,000 and up to Rs.5 lakhs.  
  • No prepayment charges 
  • Loan tenure ranging between 2 to 36 months 
  • Online Application with E-sanction and E-sign feature 
  • Doorstep documents collected by their staff 
  • Pay your monthly EMI via direct debt service, cash deposit, fund transfer, or cheque

Eligibility Criteria 

  • Applicant needs to be a resident Indian citizen
  • Minimum salary of Rs.12,000 per month
  • Minimum of 6 months employment in the current job 

Documents Required 

  • Original PDF’s of Bank Statements for the past 6 months 
  • PAN Card 
  • Aadhar Card 
  • Salary slips for the last 3 months 
  • Valid email address and mobile number 

Interest Rate and Processing Fee 

  • The rate of interest- 8.8 -15.8% pa 
  • Processing fee - 2.5% 
  1. IIFL Personal Loan 

IIFL is a leading personal finance and investment services company based out of India. They offer all kinds of credit, such as home loans, personal loans, and financial advisory.  

The main features of the loan are: 

  • Loan amount up to Rs 25 lakhs 
  • An online process with instant approval 
  • Express Loan disbursal within 8 hours 
  • Minimal Documentation 


  • A Salaried Individual whose minimum income is Rs. 35,000 or more per month
  • The age of the applicant should fall between 25 to 60 
  • Applicant must be a resident of any one of these cities: Delhi and NCR, Mumbai including Thane and Vashi, Bengaluru, or Pune 
  • Applicant must have at least 6 months of work experience in the current organization 
  • Applicant must have at least 2 years of total work experience 

Documents Required 

  • Aadhar number for eKYC
  • ID Proof (Not required if KYC is done) 
  • Address proof (Not required if KYC is done) 
  • Latest Salary slip for the last 3 months 
  • Latest Bank Statement for 3 months of salary account  

The Rate of Interest and Processing Fee 

A rate of interest of upwards of 16% 

A processing fee of 3% of the loan amount plus GST is charged. 

  1. Fullerton Personal Loan 

Fullerton India is an NBFC established in the year 2007 and since then have been catering to the credit needs of individuals and small businesses alike. 

Features of Fullerton Personal Loan 

  • Amount up to Rs. 20 lakhs for salaried individuals and Rs 30 Lakh for Self-employed 
  • No security, no collaterals or guarantee needed 
  • Balance transfer of an existing personal loan possible 
  • Tenures ranging from 1 year to 4 years 

Documents Required 

  • Application form with a recent photograph 
  • ID Proof - Passport Copy/ Voter ID card/ Driving License/ PAN Card 
  • Address Proof for Age-proof -  PAN Card, Passport, any other certificate from a statutory authority 
  • Bank Statements (Bank statement / Bank Passbook for last 6 months) OR Last 3 months’ salary slip 
  • Form 16 
  • Income Tax Returns for last 3 years 
  • Processing fee cheque 
  • Previous 2 years’ experience letter without any gap (if current work experience < 1 year) 

The Rate of Interest and Other Charges 

Interest – 11.99% - 36% 

Processing Fee – 0% - 6% of the loan amount


  1. What is the average interest rate if your credit score is between 600 – 700?

With a credit score of 600-700, you can get an interest rate of 14 – 20% per annum. 

  1. What is a good credit score to get the best interest rates on my personal loan?

If you want a personal loan with low-interest rates, try and achieve a credit score of 750 and above. 

  1. Can I get a personal loan with a credit score below 600?

It may be difficult but not impossible. You may not get favourable terms on your loan. You can go for secured loans, which don’t give much weightage to your credit score. If not, you can take some time to fix your credit score before applying for a loan. 

  1. Which bank or app provides a loan with a low credit score in India?

Many banks and non-banking financial institutions in India offer loans with a low credit score. To receive the best deal, check your loan eligibility and apply with CreditMantri.

  1. Do instant loan apps provide personal loans for low credit scores?

Yes, there are many online loan apps that provide loans for individuals with a low credit score. Check out the leading instant loan lending apps on the CreditMantri website to get the best deals.