How to Get Personal Loan with Low CIBIL Score in 2024

Getting a personal loan with a low CIBIL score can be challenging, but it's not impossible. In this comprehensive guide, we'll explore proven strategies to improve your chances of loan approval even with a poor credit score.

Understanding CIBIL Score Requirements

Most banks prefer a CIBIL score of 750 or above for personal loans. However, several lenders offer loans to applicants with scores as low as 550-650. Here's what you need to know:

Excellent (750+): Best interest rates and loan terms
Good (700-749): Competitive rates with good approval chances
Fair (650-699): Higher interest rates but decent approval odds
Poor (550-649): Limited options with higher costs
Very Poor (<550): Very few lenders, mostly NBFCs

Banks Offering Loans to Low CIBIL Score Applicants

Top Lenders for Low CIBIL Score:

BANK
HDFC Bank: Minimum 650 CIBIL score, interest rates from 11% onwards
NBFC
Bajaj Finserv: Accepts 600+ score, quick approval process
FINTECH
MoneyTap: Considers 550+ score with additional verification

Strategies to Improve Approval Chances

1. Add a Co-applicant or Guarantor

Having a co-applicant with a good credit score significantly improves your chances. The co-applicant becomes equally liable for the loan, reducing the lender's risk.

2. Show Stable Income

Demonstrate consistent income through:

6-12 months of salary slips
Bank statements showing regular credits
Income tax returns for the last 2-3 years

3. Opt for Secured Personal Loans

Consider loans against fixed deposits, gold, or other securities. These have higher approval rates and lower interest rates even with poor credit scores.

💡 Pro Tip:

Start with a smaller loan amount (₹50,000-₹1,00,000) to build trust with the lender. Regular repayments will improve your credit score for future larger loans.

Documents Required

Prepare these documents for faster processing:

Identity proof (Aadhaar, PAN, Passport)
Address proof (Utility bills, rental agreement)
Income proof (Salary slips, ITR, bank statements)
Employment proof (Appointment letter, ID card)
CIBIL report (free copy from official website)

Quick Tips to Improve CIBIL Score

Pay all existing EMIs and credit card bills on time
Keep credit utilization below 30% of your limit
Don't close old credit cards (longer credit history is better)
Check and dispute any errors in your credit report
Avoid multiple loan applications in a short period

Ready to Compare Loan Options?

Use our loan comparison tool to find the best personal loan deals from top banks, even with a low CIBIL score.