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How to Get a Personal Loan with Low Credit Score?

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Created on
September 22, 2022


What’s Inside

Personal loans are a god-sent during emergencies. While such loans can help you meet immediate cash requirements without worrying about collateral, they have a stringent requirement - a high credit score. Thus, applicants with good credit scores get easy approvals, while lenders may reject those with poor scores.

However, a poor credit score does not outright disqualify you from securing a personal loan if you know some handy measures to secure a low credit score loan.

What’s a Low Credit Score?

Your credit score is a three-digit number used to map out your credibility and eligibility for credit. It is generated by CIBIL - an RBI-authorised credit agency - by considering factors like your credit utilisation, repayment history, and existing debts. Your CIBIL score can be between 300 and 900, with scores under 750 being pegged as low credit scores.

Ways to Get a Personal Loan with Low Credit Score

You can use the following ways to secure low credit score loans with ease:

1. Submit Sufficient Income Proof

Lenders may approve personal loans for those with a low credit score if they have enough income to make the payments. Showing proof of a raise or extra income can help convince the lender to consider your application, even with a poor credit score. However, you may need to pay slightly higher interest rates on these loans.

2. Borrow a Smaller Loan Amount

Lenders avoid high loan amounts for applicants with poor credit scores due to the risk of default. Borrowing a smaller loan increases the chances of securing a low credit score loan by demonstrating the ability to repay the loan.

3. Get a Joint Loan or List a Guarantor

Adding a co-applicant with good credit and stable income or listing a guarantor can improve your eligibility and reduce the risk of default for the lender, making it easier to get low credit score loans.

4. Request the Lender to Consider an NA/NH in Your Credit Report

If you're a first-time borrower or haven't had any credit activity in the last 36 months, your credit report may show NH (No History) or NA (Not Available) respectively. To secure a loan, you can discuss the credit inactivity with the lender and expect a slightly higher interest rate.

5. Resolve Errors in Your Credit Report

Your computer-generated credit report may include errors, such as delayed updates or faulty repayment information, that can harm your credit score. To prevent this, check your report regularly and fix any mistakes before applying for a personal loan.

Alternatives to Personal Loans

  • Opt for a secured loan against your FD or gold assets
  • Check out quick loan apps that don’t consider your credit score
  • Consider peer-to-peer lending platforms
  • Try NBFCs and Fintechs for instant loans
  • Opt for Payday loans

Summing It Up

A low credit score can impede your chances of securing a loan, but doesn’t disqualify you from acquiring credit. However, improving your credit score first and then applying for loans is always prudent to prevent your score from dipping further.

Instant Personal Loans at Your Fingertips with Fi Money

Once you’ve improved your score, you can rely on Fi Money. Fi Money provides instant loans that arrive directly in your savings account. These are pre-approved personal loans made available to select users with good credit scores. On Fi, this process is 100% paperless, and the loans are provided at competitive interest rates — where each user remains in control with complete visibility of all details. Plus, you can avoid EMI late fees by setting up automatic in-app payments. Our licensed partner bank assigns an eligible loan amount to each user (up to ₹5 lakhs).

Frequently Asked Questions

1. What are low credit score loans?

Low credit score loans are tailor-made for applicants with credit scores below 750 or first-time borrowers without a credit score.

2. Can I get a home loan with a low credit score?

Yes. Some banks and NBFCs offer home loans to applicants with a credit score of 685. Moreover, you can apply for a joint home loan with a spouse, parent, or sibling with a good credit score to enjoy instant approvals.

3. What is the lowest CIBIL score for a personal loan?

Different lenders have different CIBIL score requirements for a personal loan. However, generally, this minimum requirement can vary from 720-750.

4. Can a co-signer help me secure a personal loan with a low credit score?

Yes. Applying for a personal loan with a co-signer can improve your chances of securing a loan since the co-signers credit score helps boost your eligibility and hedges default risks for the lender.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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How to Get a Personal Loan with Low Credit Score?


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