Personal Loan for a Low CIBIL Score Applicant: A Guide

Let’s start with the proverb, “Every cloud has a silver lining.” If we relate this to personal loans, a low CIBIL score may get your application rejected, but there may still be borrowing options available to you. So, a low CIBIL score makes it difficult to get a loan, but it doesn’t mean you can’t get one.

In this blog, you’ll learn about eligibility criteria, suitable loan options, lenders, disadvantages of a low CIBIL score, and more.

Quick Navigation:

What Is Considered a Low CIBIL Score for a Personal Loan?

A low CIBIL score is a three-digit number that ranges from 300 to 650, which indicates that a person has a poor repayment history, such as not repaying EMIs, loans, or credit card bills.

This creates a bad impression, and lenders consider the applicant a lending risk, which may lead to the rejection of the loan application.

Let’s see the CIBIL score ranges and their effects on getting a loan from commercial banks.

CIBIL Score range	Loan Approval Likelihood
650-600	Fair score; there is a chance of getting a loan from NBFCs and digital lenders
599-550	Unsure about getting a loan
549-300	No chance of getting a loan

More to know:

0 or N/A in CIBIL Score – It means CIBIL doesn’t have any record or history, or you have never taken a loan.

What Are the Reasons for Having a Low CIBIL Score?

Based on our research and customer interactions, these are the reasons why people end up with a low CIBIL score.

Payday and Mobile App Loans – People are often unaware of the interest rates charged and end up taking multiple payday loans, pushing themselves into financial difficulties and making them unable to repay their loans.
Unpaid EMIs and other dues – Due to financial difficulties, people may fail to pay their EMIs and credit card payments on time. These missed payments get reflected in their CIBIL reports, making it difficult to get new loans, as lenders consider them high-risk borrowers.
Loan Account Mistakes – Sometimes, your CIBIL report may show loan accounts or outstanding amounts that you never borrowed. These incorrect entries can negatively affect your CIBIL score. You can resolve this issue by raising a dispute through CIBIL’s dispute resolution process.

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

Yes, you can get a personal loan with a low CIBIL score (below 650). Here’s a real applicant who got a loan with the help of HelloCredit lenders.

Details of the applicant:

CIBIL Score: 620
Monthly Salary: ₹30,000
Overdue Status: No Overdue
Loan Amount: ₹5,00,000
Loan Tenure: 5 Years
Interest Rate: 16% Per Annum

In the end, he got a loan from one of our lenders. So, this proves that it is still possible for a person with a low CIBIL score to get a loan, as long as they have no overdue payments.

Will I be able to get a loan if my CIBIL score is above 650?

For this question, the answer is yes and no.

Several factors are checked beyond your CIBIL score. We will explain these factors.

See these real-life examples to help you understand whether you can get a loan with a CIBIL score above 650.

CIBIL score – 700
Loan amount required – 5lakh
Salary – 30,000
Overdue – 20,000

The loan was rejected because he had a high debt-to-income ratio and overdue amounts, which prevented him from getting a loan despite having a high CIBIL score.

So, this proves that a CIBIL score alone doesn’t prevent you from getting a loan; check the factors below to improve your chances of approval for availing a loan.

Guide: How to get a personal loan with a CIBIL score of 650

Factors checked beyond CIBIL score

1. No Overdue Amount

You should not have any pending EMIs or other repayments. For example, if you have an EMI, you should pay the amount on or before the due date. If you fail to pay it on time, it is considered overdue.

Lower Debt-to-Income Ratio

It is the percentage of your salary that you are already paying towards your loans, and it should be a lower percentage. For example, if you earn ₹60,000 and repay ₹40,000 in debt, your percentage would be 66.67%. Try to keep it within 30–40% for a higher chance of loan approval.

2. Age

Every lender has specific age eligibility criteria. If your age is below or above the required limit, your loan application may be rejected. Before applying, check your eligibility.

3. Meet the salary eligibility criteria

Your salary determines the loan amount you get. If you want a ₹2 lakh personal loan or a ₹5 lakh personal loan, salary eligibility may vary based on the loan amount. So, before applying, check whether you are eligible for the loan.

4. Not Marked as Settled in Your CIBIL Report

While applying for a loan, lenders will check your CIBIL score to see whether any of your loans are marked as “Settled.” A settled account means you have negotiated with the lender to reduce the outstanding loan amount and paid the agreed reduced amount. This will create a bad impression on lenders who lend money to you.

If you meet the above criteria, you can get a personal loan easily.

Personal Loans Based on Employment Type for Low CIBIL Scores

Here, I have given the eligibility requirements for both salaried and self-employed individuals.

Personal Loans Eligibility for Salaried Employees with Low CIBIL Scores

Here are the key eligibility requirements and documents required for a personal loan for salaried employees.

The applicant must be between 21 and 57 years old.
Income may vary based on the loan amount required, but a person with a salary of ₹15,000 can apply
There should be no overdue amounts or accounts marked as “settled” in the CIBIL report.
You should have a debt-to-income ratio (FOIR) of 30–40% of your salary.
Documents such as Aadhaar card, PAN, electricity bill (which lenders may ask for), and recent salary slips for the last 3–6 months are required.

Personal Loans Eligibility for Self-Employed Individuals with Low CIBIL Scores

Check the eligibility and document requirements if you are self-employed, such as a freelancer, business owner, or any other professional.

The age requirement is 21–55 years.
You should have three years of Income proof, business proof, Income Tax Return (ITR) documents, or a bank balance of ₹3,000.
You need to submit documents such as your Aadhaar card, PAN card, electricity bill (if required by the lender), and bank statements for the last 3–6 months.

Hello Credit Lenders for Low CIBIL Scores

Hello Credit lists RBI-registered lenders such as NBFCs and digital apps, especially for people with low CIBIL scores; see the table below.

Loan for Low CIBIL Score	Loan Amount Range	Lender Name
650	₹1000 – ₹1,00,000	Payme
650	₹50,000 – ₹2,00,000	Brahma Finance
650	₹5,000 – ₹2,00,000	Zype
650	₹5,000 – ₹30,000	My Money Bazaar India Pvt. Ltd
650	₹6,000 – ₹1,00,000	Creditlab
650	₹10,000 – ₹1,00,000	Emergency Paisa
650	₹10,000 – ₹15,00,000	Buddyloan
650	₹10,000 – ₹5,00,000	Fatakpay
650	₹50,000 – ₹15,00,000	Incred Financial Services
600	₹1,000 – ₹50,000	Pocket Mitra
600	₹2,500 – ₹45,000	Trustpaisa
600	₹5,000 – ₹30,000	Creditsea
550	₹3,000 – ₹35,000	Digi Credit
550	₹1,000 – ₹15,000	mpokket
550	₹1,000 – ₹25,00,000	Paisa247

How to increase the chances of approval for a low CIBIL score

Co-applicant – Many lenders may ask for a co-applicant if you have a low CIBIL score; adding a co-applicant will help you get the loan.
Closing Overdue Loans – If you are able to clear your overdue EMIs or outstanding amounts by borrowing from friends or family, make sure to repay them as soon as possible.
Collateral – Get a secured personal loan with gold or any other property to obtain a loan.
Go with a lower amount – Sometimes, you won’t get the higher amount due to a low CIBIL score, so go with a lower amount to get loan approval.
Don’t Apply for a Loan with a Low CIBIL Score – Applying for a loan with commercial banks when you have a low CIBIL score may result in rejection and further damage to your CIBIL score. Instead, check your eligibility and document requirements before applying to avoid negatively impacting your CIBIL score.

Disadvantages of Getting a Personal Loan with a Low CIBIL Score

Higher Interest Rate-You cannot get a loan from commercial banks such as IDFC, SBI, Union Bank, and more; instead, you have to go with an NBFC or any other digital lender, which may offer loans at higher interest rates compared with banks.
Loan Rejection – Due to a low CIBIL score, your loan application may get rejected, and repeated loan applications may show future lenders your urgency in getting a loan, which could affect your chances of approval.
Delays in Getting a Loan – A low CIBIL score may push your loan application through additional checks, which can delay the loan approval and disbursement process.
Lower Loan Amount – You may not get the requested loan amount because lenders consider you a high-risk borrower, especially if you already have multiple overdue payments or existing loans.

How to Apply for a Personal Loan with a Low CIBIL Score?

Apply by clicking on our personal loan contact form and filling in the requested details.
Our team will reach out to you through a phone call or WhatsApp.
The team will check your eligibility and the personal documents required for the loan.
Based on your profile, the applicant will be informed about the available lenders, interest rates, loan tenure, EMI, and more.

Frequently Asked Questions

1. Can I get a personal loan with a low CIBIL score?

Yes, you can get a personal loan with a low CIBIL score by checking with Hello Credit lenders that match your profile.

2. What is the minimum CIBIL score required to get a personal loan?

There is no fixed minimum CIBIL score required to get a loan. It depends on the loan amount required and other factors, such as the debt-to-income ratio, overdue amounts, eligibility criteria, and documentation requirements.

3. Can I Get a Personal Loan with a CIBIL Score Below 600?

Yes, you can get a loan from Hello Credit Lending Partners, such as Pocket Mitra, Trustpaisa, Creditsea, Digi Credit, mpokket, and Paisa247.

4. Can I get a loan if I have a payday or mobile app loan?

Yes, you can get a personal loan even if you have an existing payday loan or mobile app loan, but lenders will check other factors as well.

5. Which banks offer personal loans for low CIBIL scores?

If your CIBIL score is less than 650, some banks may decline applications based on their credit policies. and ask you to improve your CIBIL score or clear the overdue amount to get a loan. But you can get one from an NBFC and other private lenders

6. How much personal loan can I get with a low CIBIL score?

You can get up to ₹25 lakh, depending on lenders’ factors such as your salary, debt-to-income ratio, repayment capacity, and other eligibility criteria.

7. Can I get a personal loan if my previous loan is settled?

Yes, some lenders may provide loans, but they may charge higher interest rates or ask for collateral.

8. Can self-employed individuals get personal loans with low CIBIL scores?

Yes, you need to meet the eligibility criteria and provide the required documents to get the loan.

9. Can I get a personal loan if I have multiple loan enquiries on my CIBIL report?

You can still apply for a loan, but avoid applying multiple times if your applications are getting rejected. Instead, try to identify and resolve the reasons for rejection before applying again.

10. Will I have any additional charges for a loan for a low CIBIL score?

Yes, there are processing fees and pre-closure charges that may change from lender to lender.

11. Will Clearing Overdue EMIs Improve My CIBIL Score?

Yes, it can improve your CIBIL score, but it may take some time for the changes to reflect in your CIBIL report.