GUIDESPERSONAL LOANS
How to Get a Personal Loan with a Low CIBIL Score?
6 MIN • 
LAST EDITED BY ANOOP MENON ON FEBRUARY 20, 2026.
LAST EDITED BY ANOOP MENON ON FEBRUARY 20, 2026.
GUIDES LAST EDITED BY ANOOP MENON ON FEBRUARY 20, 2026.
If your CIBIL score is low, the main issue isn’t that no one will lend to you. In fact, it can be surprisingly easy to borrow more than you actually need, which is where the real problem starts. Lenders who do approve loans often make them costly and hard to understand.
You can get a personal loan in India even with a low CIBIL score. But just because it’s possible doesn’t always mean it’s a good idea.
What matters most is how the lender evaluates you, the true cost of the loan after adding all fees and interest, and whether the EMI is manageable even if you have an unexpected expense one month.
Let’s look at the ways you can actually get approved, and the trade-offs people often notice once they receive the loan.
CIBIL ranges from 300–900, and while the labels vary, lenders generally tend to think like this:
A score of 700 is often the psychological cut-off for traditional banks. Below that, many banks get conservative, especially for unsecured loans like personal loans, because they have no collateral to fall back on.
Yes. But you’re rarely approved despite your credit score. You’re being approved because the lender believes they have other signals that matter more.
What lenders & NBFCs typically look at (sometimes more than the score itself):
This is why NBFCs approve more loans for people with low scores. Their approval process is usually more flexible than traditional banks, but they also charge higher rates to cover the risk. All of which leads to an important question. Read on.
A loan for someone with a low score is usually not rejected because you seem like a bad choice. It’s rejected because the lender isn’t sure you can repay.
If they approve you, they protect themselves by charging higher interest rates, offering shorter loan terms (which means higher monthly payments), giving smaller loan amounts at first, and imposing stricter penalties for missed payments.
Before you apply for a loan, figure out an EMI amount you can afford even in a tough month, like if you have unexpected medical bills, a delayed payment, or sudden travel costs.
If you’re thinking, “I’ll take the loan now and worry about the EMI later,” it’s better to reconsider. This approach often turns a short-term money problem into a much longer one.
This is the most common option when traditional banks decline your application. An NBFC personal loan for a low CIBIL score can work if you have a steady income and clear cash inflows.
Advantages of taking a loan via an NBFC: Faster decision-making or approvals, flexible loan eligibility checks, and often minimal documentation required.
Disadvantages of using an NBFC: Higher interest rates, shorter repayment periods, and sometimes complicated fees or terms if you don’t read the details carefully.
If you choose this option, carefully review all terms and ensure you understand the total cost, including the interest rate, processing fees, late fees, bounce charges, and any prepayment penalties.
An instant personal loan for a low CIBIL score is designed for fast disbursement. The best-case scenario: you need money today for something genuinely time-sensitive; be it a hospital deposit, urgent repair, or a short-term gap.
The trap: convenience can override judgment. “Hassle-free” borrowing is great until you realise the EMI schedule assumes your month will behave a certain way.
If you’re considering an instant personal loan online for a low CIBIL score, watch for:
If you’re salaried, lenders often treat you more predictably, especially if your bank statements show consistent salary credits and stable spending.
Lenders will check:
This is why a personal loan for a salaried person with a low CIBIL score is usually easier to obtain than for someone with irregular income, even at the same credit score.
Self-employed people can also get approved, but lenders focus more on the quality of your income proof instead of salary stability.
What helps here would be regular bank inflows that look like business revenue, clean transaction trails (not cash-heavy ambiguity) & realistic requested loan amount.
If your income is real but irregular, don’t expect a lender to “understand your business.” Make it legible through your statements and filings. That’s the difference between rejection and approval for a personal loan for self-employed people with a low CIBIL score.
If you have collateral, a secured loan is often the most rational move. A few examples of this: gold loan, loan against Fixed Deposits or loan with a family member as co-applicant (not collateral, but risk-sharing).
This isn’t about pride; it’s about saving money. Secured loans usually have lower interest rates than high-risk unsecured personal loans. If you’re facing very high rates, a secured loan can be the best available choice.
Every extra application can create additional enquiries, and too many enquiries can drag your credit score down further.
A better approach:
This is how to get a personal loan with a low CIBIL score without accidentally harming your profile.
If your bank statement shows large unexplained deposits, frequent bounced payments, or irregular inflows, be prepared for more questions from lenders. A low score combined with messy cash flow is something lenders really dislike.
Most low-score approvals still depend on basics being in order. Typically, documents required include:
The amount you can borrow depends on your income, current financial obligations, existing EMIs, and the lender’s own policies. Many lenders will start you with a small loan. If you make your payments on time for a few months, you may qualify for better rates or higher limits later.
Some platforms (including fintech platforms that partner with NBFCs, such as Fi Money, which positions itself as a loan referral partner) let you check eligibility digitally and submit documents online. That can reduce friction.
Just don’t outsource judgment to the interface; make your own calls. If you’re applying for a personal loan with a low CIBIL, here’s a checklist to help you:
Check your credit report for wrong entries
A loan taken with a low score can improve your credit profile, but only if you treat it as a way to rebuild your finances. Remember, there’s no such thing as free money.
Here’s what moves the needle: if you’re consistent, improvement over the next 6–9 months is common.
Getting a personal loan with a low CIBIL score is now common. What’s less common is for borrowers to see it as a risk, not just a quick fix.
If you can’t get a decent rate, borrow less and repay faster. If the EMI only works in a perfect month, don’t take the loan. And if you have a secured alternative, consider it seriously; it’s often the most financially adult choice in the room.
Yes. Many NBFCs and loan apps offer loans for bad CIBIL scores, though loan amounts may be lower and interest rates higher.
Trusted apps working with NBFC partners are generally safe. Always read loan terms carefully before accepting.
Multiple applications can reduce your score. Always check eligibility first.
Yes. Timely EMI payments are one of the fastest ways to rebuild your credit profile.
For low-CIBIL borrowers, instant loans and NBFC loans typically have much higher approval rates than traditional bank loans.
