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How To Get A Personal Loan With Bad Credit?

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Created on
March 21, 2023


What’s Inside

Life's all about ups & downs. Are you struggling to surf a downward wave while in dire need of financial help? Resort to a loan. But, if your life's plagued by bad credit scores & a poor credit profile, acquiring a loan might be tough. Yet, as a last-ditch effort, you may turn to bad credit personal loans. 

Bad credit personal loans are available exclusively for borrowers with poor credit scores. They work like regular personal loans but have stricter terms & often carry a higher interest rate. 

If you take a personal loan with a bad credit score, thoroughly read the terms and conditions. Also, you need to repay the loan as per the timelines set by the lender to avoid accumulating steep interest charges. 

Should You Get a Personal Loan With a Low Credit Score?

Ideally, no. It is always a smarter idea to wait till you have improved your credit score in the first place. That said, sometimes, you may require emergency funds. For instance, someone in your family may fall ill unexpectedly; you face job-related issues, or your vehicle or home may need a significant overhaul. In such situations, you may have to look for personal loans for individuals with poor credit. In other words, you must resort to using bad credit personal loans. 

5 Tips to Avail Personal Loans with Bad Credit Scores

Borrow a Smaller Sum

Some lenders may prefer to avoid lending smaller sums of money to people with poor credit. It may be particularly true if your credit score is in the mid-range, where it’s not over 750, but it’s not extremely poor either.

Offer Proof of Sufficient Income

You may have previously had trouble repaying your debts due to low or no income. However, if you now earn sufficiently, you can offer proof of such an income to your lender & improve your loan eligibility. But you may still have to pay higher-than-average interest.

Get a Co-Applicant or a Guarantor

A co-applicant with a good credit score or a guarantor reduces the risk the lender takes — meaning easier access to personal loans even with bad credit scores.

Offer Collateral

Opt for secured loans, which require an asset to be pledged as collateral. If you have money invested in securities like a Fixed Deposit (or bonds, gold, or house property), you can take a loan against these assets.

Check if Your Credit Score is Correct

Lastly, you may simply be the victim of an error in your credit report. If that’s the case, rectify the error so you can avail of regular personal loans from registered lenders.


In conclusion, while life presents its share of challenges, including financial struggles and bad credit scores, bad credit personal loans can provide a last-resort option for individuals in dire need. These loans, although accompanied by stricter terms and higher interest rates, cater specifically to borrowers with poor credit. It is always recommended to improve credit before seeking a loan, but in emergencies, personal loans for individuals with poor credit become necessary. By following tips such as borrowing a smaller sum, proving sufficient income, involving a co-applicant or guarantor, offering collateral, or rectifying credit report errors, individuals can increase their chances of obtaining personal loans even with bad credit.

Once you’ve improved your credit profile, you may get instant access to funds with pre-approved loans via platforms like Fi Money. Check the app to see if you are eligible for instant loans up to ₹5 lakhs, offered at competitive interest rates via a 100% paperless application process. 

Frequently Asked Questions

What is the minimum CIBIL score required for a personal loan?

The minimum CIBIL score required to avail of a personal loan typically varies from one lender to another. However, in most cases, lenders require applicants to have a credit score of at least 700. If your CIBIL score is over 750, it will be even easier for you to secure a personal loan. 

Can I get a loan with bad credit without a guarantor?

Yes, getting a personal loan with a bad credit score is possible, even if you do not have a guarantor. You could bring in a co-applicant with a better credit profile. Alternatively, you could offer collateral to reduce the lender's risk. Also, depending on the lender's terms and conditions, you can get a small personal loan with bad credit.

What is the minimum credit score for a personal loan?

The minimum credit score required for a personal loan can vary depending on the lender and their specific criteria. Generally, a credit score of 600 or above is considered satisfactory for qualifying for a personal loan. However, some lenders may have stricter requirements and may prefer borrowers with higher credit scores, such as 700 or more, to offer more favorable loan terms. It is advisable to check with individual lenders to understand their specific credit score requirements.


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 Bad Credit?


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