Ways in which you can avail a Personal Loan even if you have a low CIBIL Score


A personal loan is an unsecured form of credit that can be used to fulfil a wide range of needs and requirements. Since such a loan is unsecured in nature, many banks and financial institutions that offer personal loans usually require the applicant to possess a CIBIL score of at least 650 or 700. But what if you have a low score? Can you still avail a personal loan under  such circumstances? Let’s take a look. 

Availing a Personal Loan with a Low CIBIL Score 

Thankfully, there are quite a few ways through which an individual can avail a personal loan despite having a low credit score. Here are a few of the most common ones. 

1.Apply with a co-applicant or a guarantor

The best shot that you have at getting a personal loan for low CIBIL score is by applying for it along with another individual as a co-applicant or guarantor. When there are more than one applicant for a loan, financial institutions are more likely to approve it, especially if the co-applicant or a guarantor has a stellar credit score. 

2.Opt for an online lender 

There are many fintech lending platforms in India with a fully digital footprint. They not only allow you to apply for a personal loan online but are also very lenient with their eligibility criteria as well. Quite a few of them don’t even take the credit score into consideration at all, making it easy for individuals to avail a personal loan with a low CIBIL score.  But one should always thoroughly check the authenticity of such lenders. 

3.Prove your repayment capability 

Some financial institutions may still be willing to offer you a personal loan in spite of possessing a low CIBIL score if you’re able to prove your repayment capability. You may be asked to provide necessary documents such as your Income Tax Returns (ITRs) and your salary slips to back up the claim. If you’re able to prove that you have a favourable Fixed Obligations to Income Ratio (FOIR), you may still be able to land a personal loan.

4.Secure a collateral loan

If you possess any valuable asset, such as gold or property, you can choose to use that as a collateral for a loan. Since providing a collateral reduces the risk of default and gives way for financial institutions to recover their loan in the case of a default, the chances of you getting a personal loan becomes higher. 

5.Improve your credit score 

And finally, if you’re not in a hurry to get a personal loan, then you can simply choose to improve your credit score before applying for one. This can drastically increase your chances of availing a loan. There are several ways through which you can enhance your score, here’s a quick look at a few of them.

  • By reducing your credit utilisation percentage
  • Paying your credit card bills on time 
  • Checking your credit report periodically to ensure no faulty information 


With this, you must now be aware of the ways through which you can avail a personal loan with a low CIBIL score. That said, since it is extremely easy to get a personal loan online these days, many individuals tend to make multiple applications for a personal loan online. However, this can have a huge negative effect as it can degrade your CIBIL score even further. So, ensure to give a healthy gap of a few months before making an application for a personal loan once again. 

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