Getting a loan with a low CIBIL score may seem difficult, but it’s not impossible, especially if you’re looking for an unsecured loan. Unlike secured loans, unsecured loans don’t require collateral. However, lenders often use your Credit score to assess your creditworthiness.
In this blog, we’ll explore practical ways to get approved for an unsecured loan even if your credit score isn’t perfect.
An unsecured loan is a bank loan that doesn’t require you to pledge any assets or security. Most personal loans, credit card loans, and instant loans fall under this category.
Since there is no collateral, banks and NBFCs rely heavily on your credit score, income, and repayment history to approve the loan.
A CIBIL score (ranging from 300 to 900) reflects your creditworthiness. Typically, a score below 650 is considered low. If your score is under this threshold, banks may hesitate to offer you the best unsecured loans or low-rate personal loans.
However, don’t worry—there are smart ways to still secure financing.
Traditional banks may reject your loan application, but many NBFCs and digital lenders are more flexible. They often offer instant loans to individuals with low scores but consistent income.
If your salary is regular and you can prove job stability, lenders may overlook your credit history. A steady income increases your chances of loan approval significantly.
You can apply with someone who has a strong credit profile. A co-applicant or guarantor boosts the lender’s confidence and improves your chances of approval.
Asking for a smaller amount may increase your chances of getting a personal loan with a low CIBIL score. Lenders are more likely to approve smaller loans with less risk.
Sometimes, your credit score is low due to incorrect information. Always check your credit report and dispute any mistakes before applying.
Some banks and NBFCs offer pre-approved personal loans, especially if you have an existing relationship with them. These offers are less dependent on your credit score.
If you’ve been a loyal customer with a good transaction history, your bank may consider giving you a loan despite your low score.
If an unsecured personal loan seems hard to get, you can explore other finance options:
- Gold Loans – Based on the gold you pledge
- Loan against FD or Insurance – Collateral-based but easily accessible
- Salary Advance Apps – Useful for short-term needs
Having a low credit score doesn’t mean you’re out of options. With the right approach, documentation, and lenders, you can still get an unsecured loan to manage your financial needs.
Remember to pay EMIs on time and avoid taking multiple loans simultaneously to gradually rebuild your credit score. For better chances, compare options like HDFC personal loan or Bajaj Finance personal loan and check eligibility before applying.
