How to get a personal loan with low CIBIL score?

Life is indeed unpredictable. Any financial expense or an event which requires you to shell out a decent sum of money can occur any time. This is where a Personal Loan can come to your rescue. However, in order to be eligible for a personal loan, you will need to satisfy a certain set of conditions laid out by your lending entity. One of those criteria is the fact that your CIBIL score should be in the range that is considered to be healthy by most lenders.

Your CIBIL score, which stays within the range of 300-900, should be equal to or above 750 for you to even stand a chance of getting approved for a personal loan by a lender. In fact, the first thing that a lender does is check your CIBIL score as soon as they receive your personal loan application. It is because your CIBIL score is indicative of your attitude towards credit and your financial management skills at large.

Also read: What are the various types of personal loan in India?

But, if your CIBIL score is below the 750-mark due to whatever reasons, there is still a chance that you can receive a personal loan for your emergency financial needs. This article will tell you about those workarounds. Read on to know more about instant loan for low CIBIL score. 

If you are looking for a personal loan for low CIBIL score holders, you can try out the following methods:

Get Personal Loan from Airtel Flexi Credit

For the Airtel users on the lookout for an instant personal loan for low CIBIL score holders, you can apply for one through the Airtel Thanks app itself. Through the same, you will be able to get an instant personal loan of up to ₹9,00,000 with the help of a few clicks on your smartphone. Keep in mind that the maximum amount you can avail will depend on your individual eligibility.

All you will need to do is verify yourself and then check your best loan offer if you are eligible. Post which, you will simply need to choose your loan amount and repayment tenure. The maximum loan repayment tenure will also depend on your individual eligibility. After which, you will need to select from one of our three lending partners, namely DMI Finance, Money View and IDFC First Bank. Once your application goes through and is verified and approved, you will receive the money in your account within 24 hours.

Pay back your credited amount with easy personal loan EMIs!

Contact Your Own Bank

If you have a long-standing relationship with a particular bank, maybe you should reach out to them first. Your bank will have your account credit and debit details going back several years, and if your relationship manager deems you to be a creditworthy person based on those records, you can still get a personal loan. Additionally, if you have taken up any loans in the past which you have repaid on a timely basis or foreclosed way ahead of time, that could also help you get a personal loan right away.

If you are, however, unable to get a loan after speaking to your relationship manager, you can perhaps try speaking to the branch manager itself. You may have to provide additional income proof to give the concerned individual the impression that you can pay off the loan.

Also Read: Personal Loans for Self-Employed in India

Get A Loan from an NBFC

Sometimes, when known banks refuse your personal loan, a Non-Banking Financial Company (NBFC) can come to your rescue. In fact, some NBFCs have been set up with the intention of making credit accessible to those who cannot easily secure a loan from a formal and more established lender. But, keep in mind that if you are securing a personal loan from such an entity, you may need to pay a higher interest rate and might be required to pay off your dues in a shorter span of time.

Get A Secured Personal Loan

If you are someone who has tried the above two methods of securing low credit score loans, you can perhaps try getting the same by either offering some form of security. One of the most popular forms of secured loan types, people go for are Loans Against Property (LAP). A Loan Against Property is basically a large personal loan that you can avail provided you submit documents of any property that you own as a collateral/security. The documents stay with the lender until you pay off your loan amount. If you are unable to pay off the same, the bank holds the right to auction off your property to recover the due amount. So, if you are going for such an option, keep in mind that if you fail to repay, you can lose your property. These loan options are best for people who want personal loan without CIBIL score. 

Get A Guarantor on board

Alternatively, you can get a guarantor with you to the bank/NBFC while applying for a personal loan if you have a low CIBIL score or if you want instant loan without CIBIL . A guarantor, as the name suggests, provides assurance to the lender that their loan money will be repaid to them irrespective of your financial condition. But, keep in mind that your credit repayment behaviour directly impacts their credit score as well, so you must be extra vigilant if you are taking a personal loan on the basis of a guarantor’s assurance.

If none of the above methods are working for you, maybe you should focus on fixing your CIBIL score. You can do so by making timely loan repayments, foreclosing them if possible, keeping your utilisation of credit low and not making multiple credit inquiries in short span of time.

FAQs

1. What is the understanding of a CIBIL score?

A CIBIL score is a 3-digit number ranging from 300 to 900 that reflects your creditworthiness. Lenders typically require a score of 750 or above to approve personal loans. It indicates your financial management skills and repayment behavior, making it a key factor in loan approval decisions. A higher CIBIL score increases your chances of getting approved for loans at favorable terms.

2. How can I get a personal loan with a low CIBIL score (excluding Airtel Flexi Credit)?

If you have a low CIBIL score, you can still get a low CIBIL loan by contacting your current bank where you have a long-standing relationship. You may also approach Non-Banking Financial Companies (NBFCs), which specialize in offering loans to individuals with lower credit scores. Alternatively, you can explore secured personal loans, such as Loans Against Property (LAP), or apply with a guarantor to strengthen your application.