By Thelowinterest 18 Nov, 2025
Getting a personal loan with a low CIBIL score can be challenging, but it’s not impossible. Many individuals face loan rejections because of late payments, high credit card usage, or no credit history. The good news is that several banks, NBFCs, and digital lenders in 2025 offer personal loans even to people with low or bad credit scores.
This guide explains how you can still get approved, what documents you need, and how to improve your chances.
A CIBIL score ranges between 300 and 900, and lenders use it to understand your repayment behaviour.
Here’s how it’s classified:
750–900: Excellent
700–749: Good
650–699: Average
550–649: Low
300–549: Very Low
Yes.
Banks may hesitate, but NBFCs and online lending apps provide loans even to low-score customers. They focus more on income, job stability, and repayment capacity rather than just CIBIL.
Banks prefer high-score borrowers, but NBFCs are more flexible. They approve loans based on income and bank statement behaviour.
Examples:
Bajaj Finserv, Tata Capital, KreditBee, Paysense, MoneyView, Fibe, CASHe.
These lenders provide quick disbursal and simple documentation.
A strong monthly income can balance your low CIBIL score.
Submit:
Last 3 months’ salary slips
Last 6 months’ bank statements
ITR (if self-employed)
Higher income = lower risk = higher approval chances.
Lenders check how much of your income is already going into EMIs.
Try to keep your DTI below 40%.
Clear small dues like:
✔ Credit card minimum dues
✔ Old EMIs
✔ Short-term loans
This immediately improves your loan eligibility.
If someone with a good credit score becomes a co-applicant, lenders approve loans faster and at better interest rates.
Best co-applicants include:
Spouse
Parents
Siblings
This reduces the lender’s overall risk.
If your unsecured personal loan is getting rejected, choose a secured loan such as:
Gold Loan
Loan Against Property
Loan Against Fixed Deposit
Loan Against Insurance Policy
These loans do not require a high CIBIL score and offer lower interest rates.
Many borrowers have low scores due to reporting mistakes like:
Closed loan shown as active
Incorrect overdue amount
Wrong personal details
You can correct these via CIBIL’s dispute section.
A small correction can increase your score by 20–50 points instantly.
Every loan application creates a hard inquiry, which lowers your CIBIL even more.
Apply only with 1–2 lenders at a time.
Websites like TheLowInterest.com help you compare lenders who approve loans even with low CIBIL scores.
This helps you avoid repeated rejections and get the best rate for your profile.
Even with a low score, lenders still check:
Age: 21–60 years
Minimum income: ₹15,000 to ₹25,000 per month
Stable job (at least 6–12 months)
Clean bank statement
Low existing EMI burden
Minimum documentation includes:
Aadhaar card
PAN card
Bank statement (6 months)
Salary slips (3 months)
Passport-size photo
Self-employed individuals may also need ITR and business proof.
⛔ Applying to too many lenders
⛔ Not checking the credit report before applying
⛔ Using unverified loan apps
⛔ Taking more loan amount than needed
⛔ Ignoring hidden charges like processing fees
Avoiding these mistakes increases your approval chances.
You don’t need years to improve your score — even 60–90 days of good credit behaviour can make a big difference.
Try these steps:
✔ Pay credit card bills on time
✔ Keep card usage below 30% of limit
✔ Pay old overdue EMIs
✔ Do not close older credit accounts (they help score)
✔ Avoid loan applications for a few months
Consistent behaviour can raise your score by 50–100 points.
A low CIBIL score does make borrowing difficult, but you still have options.
If you choose the right lender, show strong income, and avoid multiple applications, you can easily get a personal loan approved even with a low credit score. At the same time, focus on improving your score to get better interest rates and higher loan amounts in the future. thelowinterest.com
Yes, NBFCs and digital lenders may approve your loan if you have strong income and clean bank statements.
MoneyView, KreditBee, Bajaj Finserv, Fibe, Tata Capital, and Paysense are known to approve low-score loans.
Yes, every application creates a hard inquiry which lowers your score.
Yes. Options like gold loans or loans against FD do not require a high CIBIL score.
Most lenders require a minimum monthly income of ₹15,000 to ₹25,000.
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