personal loan for low cibil score

Few Ways to Boost You CIBIL Score

Improve-Credit-Score

Borrowers might face situations where an application for an instant personal loan will be rejected because of low CIBIL score. It is unfortunate and can happen with anyone if they have been a careless borrower. Hence, at that moment you have the knowledge how to increase Your CIBIL Score quickly.

CIBIL score is an outstanding score that tells financial institutions how responsible you are with your money. It is a parameter between a score of 300 and 900, formed with the summary of your credit history and repayment behaviour. Whenever you apply for a loan with a lender, they usually check this score to decide for giving you a personal loan. If your CIBIL score is more than 700, you are more likely to get an instant personal loan at a low-interest rate. But in case if your credit score is low it is  quite difficult to get approval on your loan.

  • Review your credit report- Credit history and CIBIL score play such an essential role in a loan application; it is wise to review your credit score before applying. Experts suggest checking the credit report regularly. By doing this, you can see where you went wrong and right your wrong. For example, if your credit score is low because of late payments, you can be careful and make timely repayments in future. 
  • Pay dues on time- Repayment on time can be an essential factor for determining the CIBIL score. It is unlikely to get a low-interest personal loan for a low CIBIL score. So, if late payments are keeping your CIBIL score low, work to ensure that you pay EMIs on time. Doing so will also reduce the cost of borrowing as you will no longer pay the penalty by the lender on late payments.

These were a few expert tips to boost your credit score. Small things go along the way in building an impressive score. So, avoiding late payments and multiple loans will keep your CIBIL score high. A high CIBIL score will ensure easy instant personal loans at a meagre interest rate!

Additional Read: Know the Importance of CIBIL Score for a Personal Loan

Top 3 Myths Related To CIBIL Score

In the current digital era, it is quite easy to spread misinformation about anything, and the CIBIL score is no exception. Let’s look at some of the widely believed myths related to CIBIL score.

Myths Associated with CIBIL Score

Everybody knows the fact that a good CIBIL score is significant to avail a personal loan. It reflects the past borrowing record of the borrower and ensures timely repayment. However, there are some myths related to the CIBIL score. Here, in this article, we’ve busted the top two myths that you should know about before applying for a personal loan.

Low Credit Score Means No Loan

It is widely believed that your loan application will not be approved if you have a low CIBIL score. But, the same is not the case as you can still avail of a loan even if you have a relatively low credit score. Several NBFCs provide a personal loan for low CIBIL score. Therefore, during an emergency, you can choose such an NBFC and get the funding you require.

Zero Credit is Beneficial

Most borrowers make the mistake of assuming that zero credit history is beneficial for them for getting a loan. However, the truth is that lenders look for someone who has a reasonably responsible credit behavior. Even if you have not taken a loan, it is advisable to buy some products through EMI to maintain a decent CIBIL score. 

Wrapping it up

Keep in mind that the CIBIL score is not the sole factor a lender considers to sanction a loan. In addition to the CIBIL score, you also need to present proper documents and meet the eligibility criteria to get a loan.

Must Read: How to Avail of a Personal Loan with Low CIBIL Score?

What Should I Do To Get A Personal Loan With A Low Credit Score?

CIBIL-Score (1)


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