When you apply for a personal loan, the lender or the bank evaluates your loan application based on various factors. CIBIL ™ score is one of the most important aspects. Since a personal loan is an unsecured loan and no collateral is required, a low CIBIL ™ score will put you at the risk of getting rejected. But, you can obtain a personal loan with a low CIBIL ™ score as well. 

What Is A CIBIL™Score? 

A CIBIL TM score is a 3 digit number that summarizes your credit history. This score falls in the range of 300 to 900. The CIBIL ™ score is computed using the information in your credit report. Payment history related to various loans, credit institutions, credit card bill payments etc. is taken into account. 

What Is An Ideal CIBIL ™ Score? 

An ideal CIBIL ™ score should be above 700. You can get a personal loan conveniently with this score.  But, a score above 750 is excellent and you will get instant loan approval with this score. You can also get the best deals from lenders with this credit score in addition to negotiating for the best interest rates. 

7 Ways To Get A Personal Loan With A Low CIBIL ™ Score. 

Check CIBIL ™ Report For Errors 

You will not get a personal loan with a low CIBIL ™ score. But, it is possible that your report has errors, which pull down your score. So, if you check your report regularly, you can correct any discrepancies that arise immediately. You can raise it with the required authorities and get it rectified. This will ultimately help in raising your credit score. 

Prove your repaying capacity:

Even if your CIBIL ™ score is low, you can still get a personal loan by proving that you will repay your EMIs on time. You can show proof of any recent hike or any additional income source when you apply for a loan. Your credit report will not have details of your savings account, fixed deposits, and investments. So, show these to the lender to give him confidence that you can repay the loan. You may be charged a higher rate of interest though.

Also Read: CIBIL™ Score for Personal Loan

Apply for a Joint Loan:

You can apply for a personal loan jointly with an individual who has a good CIBIL ™ score. It can be your spouse, relative, sibling, children, or even a friend. This individual is called the co-applicant. The lender can approve your loan based on your ability to pay the EMIs. 

Apply with a guarantor:

You can apply for a loan with a guarantor who will be responsible for paying your EMIs if you cannot pay. If the guarantor’s CIBIL ™ score is high, then the lender will sanction the loan based on this. The guarantor can be anybody including a spouse, relative, friend, sibling, or children. However, the guarantor must be at least 18 years of age, must be in the same country and should have enough funds to pay the loan in case you default. 

Apply For a Smaller Loan Amount:

if your loan amount is smaller, then you can get a personal loan with ease. Lenders perceive sanctioning higher loan amounts as risk for those with a lower CIBIL ™ score. So, take a smaller amount of loan, repay it on time, and improve your CIBIL ™ score.

Request the Lender to consider an NA or NH in your CIBIL ™ Report:

If you have been inactive to credit for the past 36 months or if you are new to credit, then ask the lender to consider your case as an NA or NH. This means that you will not have a credit score at all in your credit report. You can speak to your lender and explain why there has been a period of credit inactivity. You may then get approved for a personal loan but with higher interest rates. 

Choose New-age NBFCs and Fintech Lenders -

Your last resort would be to apply for a loan with new-age NBFCs or digital Fintech lenders. They will approve your loan for a higher interest rate even though your CIBIL ™ score is low. 

Also Read: What is the minimum CIBIL™ score to get a personal loan

To Get A Personal Loan Without A CIBIL ™ Score 

If you want to get a personal loan, then you should take steps to improve your CIBIL ™ score. But, this is a long-drawn process. So, what are the other ways to get a personal loan? 

Collateral-based loan:

You can take a collateral-based loan as these are secured loans which do not require CIBIL ™ score. You can pledge your shares, gold, deposits, or home to get a collateral-based loan. You can then repay this loan and build your credit profile. 

Peer-to-peer lending:

If you want to take a smaller loan amount, then you can look for peer-to-peer lending. Here, you can obtain a loan directly from another individual, eliminating the need for a financial institution. 

Utilizing your parent’s or spouse’s CIBIL™ score:

You can apply for a personal loan by joining with your parent or spouse who has a  good CIBIL ™ score. The lender will sanction the loan based on your spouse’s or parent’s CIBIL™ score. 

Obtain a Credit Card:

You can get a credit card if you are salaried and have a bank account. You can also apply for a credit card jointly with a family member who has a good CIBIL ™ score. Alternatively, you can apply for an overdraft facility with a fixed deposit as collateral. Timely payment of credit card dues and bills will help in improving your credit score.


Thus, even if you have a low CIBIL™score, you can get a personal loan. But, the interest rates will be high and you may not get the best terms for the loan. You can also get a personal loan without a CIBIL™score through the ways specified above. But, they are all cumbersome processes. So, the best thing will be to boost your CIBIL™score and then apply for the personal loan although it is a long drawn process. 

  FAQS of 7 Ways To Get A Personal Loan With A Low CIBIL ™ Score

1:What is a credit builder loan? 

A credit builder loan varies from a traditional loan. For a traditional loan, you can get the money you are borrowing upfront and pay it back over time. But, you can make fixed payments to a lender and then get access to the loan amount at the end of the loan term. 

2:How can I get instant money without a CIBIL™ score? 

If you need instant cash without a CIBIL ™ score, then you can go in for a secured loan, such as a jewelery loan, gold loan, fixed deposits, and so on. But, if you do not pay the loan on time, then the lender will seize the asset.