Well, for starters, getting a personal loan with a low credit score is difficult. In fact, some of the lending institutions will directly reject your loan application if it does not meet the minimum credit score requirement. Hence it is quite difficult to avail loan. But you cam also apply for the personal loan for low cibil score as some of the lending institutes offers such loans. What you can do is spend time on improving your credit score to reach the required benchmark? 

Steps you can take to improve a low credit score:

• Pay your installments on time – Everytime you delay an installment, you are lowering your credit score. On the other hand, every time you make the monthly installment payment on the scheduled date or before, you are increasing your credit score.

• Show that your income can cover the EMI – Some lenders might be open to a conversation if your credit score does not reflect your ability to repay the debt in full. You may have had a promotion or may have inherited money – proving an additional source of income may help.

• Apply with a co-applicant who has a good score – Your co-applicants credit score will increase your chances of getting the loan approved. Make sure that both income and credit score of the co-applicant meet the criteria of the lender.

• Let the lender know about NA or NH – The use of NA or NH in your credit report tells the lender that there has been no credit activity in your account for 36 months or more. Some lenders might take your income into account, and may approve the loan, albeit at a higher rate of interest. In such cases, you can opt for a credit card and pay the installments on time to get a good score.   

Looking for a personal loan with a low CIBIL score is tough task, and if you have the time it is better to improve the score and then submit your application form.  Please do ensure that you and your co-applicant are meeting all the personal loan eligibility criteria of the lender.

Additional Read: Smart Habits to Boost your CIBIL Score in 2020