Can You Get a Personal Loan with a Low CIBIL Score?

Getting a Instant Personal Loan with a low CIBIL score may seem tough — but it’s not impossible. Many NBFCs and fintech lenders specialise in helping borrowers with imperfect credit histories. Read on to learn how CIBIL affects approval, who’s eligible, and practical steps to improve your chances.

What is a CIBIL Score?

A CIBIL score is a three-digit number (300–900) that reflects your creditworthiness. TransUnion CIBIL calculates it from your credit history and repayment behaviour. Generally:

1. 750+ - Good (best chances for approval)
2. 650–749 - Average
3. <650 - Low (may face higher interest or stricter checks)

How a Low CIBIL Score Affects Loan Approval

A low score signals higher risk to lenders. Consequences often include:

1. Higher interest rates and harsher terms.
2. Lower approved loan amounts than requested.
3. Additional documentation or requests for guarantors/collateral.
4. Higher probability of rejection by traditional banks.

Still — many NBFCs, fintechs, and digital lenders are flexible. If you can show stable income, employer verification, or offer collateral/guarantor support, you can get approved.

Eligibility Criteria (Even with Low CIBIL)

Lenders typically look for Basic eligibility markers. Meeting these increases your chance even with a lower score:

1. Age between 21–58 years. Stable monthly income (often ₹15,000+).
2. Salaried or self-employed with regular bank transactions.
3. Valid identity & address documents and an active bank account.
4. Indian citizenship.

Strategies to Improve Approval Chances with a Low Score

Try one or more of these approaches:

Tips to Improve Your CIBIL Score for Future Loans

1. Pay EMIs and credit card bills on time - consistency matters most. 2. Maintain low credit utilisation - don't max out your cards. 3. Avoid multiple loan/card applications in a short period. 4. Monitor your credit report regularly; dispute and correct any errors. 5. Keep a balanced mix of secured and unsecured credit over time.

Borrow Responsibly — A Quick Checklist

1. Only borrow what you can repay comfortably. 2. Compare rates across lenders - small differences add up. 3. Understand all fees: processing, prepayment, late penalties. 4. Ask Fundcera for help in document preparation and lender selection.

How Fundcera Can Help

At Fundcera, our consultants specialise in helping applicants with low CIBIL scores:

1. Compare lender options suited to your profile.
2. Prepare and verify documents to reduce rejection risk.
3. Suggest co-applicant or collateral strategies where relevant.
4. Negotiate terms and guide you through the application-to-disbursal process.