A Guide to Applying for a Personal Loan with a Low CIBIL Score

Learn how to apply for a personal loan even with a low CIBIL score. Discover tips and strategies for securing a loan without a high credit score, and get the funds you need for various needs, from planned expenses to emergencies.

Finance Apr 28, 2025 45 Add to Reading List

A personal loan is a great way to fulfil a variety of requirements, from planned expenses to emergencies. However, a low CIBIL score can be a problem while applying for a personal loan. This score, ranging from 300 to 900, is a determining factor that financial companies use to evaluate a candidate’s creditworthiness. A CIBIL score below 750 is usually considered poor, making it difficult to secure a loan on favourable terms. But, it does not mean getting a personal loan is impossible without a good score. Here are some tips to apply for a personal loan without a CIBIL score.

How is Credit Score Calculated, its Importance and How to Improve it?

Show a Proof of Sufficient Income for Assured Timely Payment

Showing proof of a stable and good income source can boost your chances of getting a personal loan, even with a low or no CIBIL score. If you have any extra income source or a recent increment, highlight these factors to better persuade the financial company of your capability to make timely EMI payments.

Select Lenders Who Specialize in Low-Credit Borrowers

Go for a lender that is specialized in providing loans to applicants with low CIBIL scores. They have a more flexible approach and are ready to see other factors beyond the CIBIL score. They consider job stability, income source, and other aspects to make a decision. However, you should be careful of the loan terms and the higher interest rates imposed by the lender.

Consider a Co-Applicant

For a better chance of personal loan approval with a low CIBIL Score, consider applying with a co-applicant having a good credit history. The lender will consider the eligibility factors of both applicants to approve the loan. The monetary strength and credibility of a co-applicant can increase your chances of approval. However, the co-applicant will also be held accountable for repaying the loan amount if you can't.

By exploring different options and taking proactive approaches to improve your credit, you can boost your chances of loan approval for your needs. Reducing credit card balances, paying off outstanding debts, and ensuring timely payments can improve your CIBIL score and boost your chances of securing a loan on better terms.