Personal loans offer quick and easy financing without the need for collateral, making them a popular choice. However, to get approved, many lenders look closely at an applicant’s CIBIL score, which reflects their creditworthiness. A low CIBIL score might seem like a barrier, but there are ways to still get an instant personal loan even if your score is not ideal.
What Is the CIBIL Score, and Why Does It Matter?
The CIBIL score is a three-digit credit rating that ranges from 300 to 900. It reflects a person’s credit history and financial health, calculated by CIBIL, a leading credit bureau in India. A higher score, typically 750 and above, signals good credit behavior, which often leads to favorable loan terms, such as low-interest rates and flexible repayment options. Your score is calculated based on factors like your income, monthly expenses, debt levels, and repayment history.
Checking Your CIBIL Score Online
To increase your chances of getting a personal loan, it’s important to check your CIBIL score regularly. You can view your score for free on the official CIBIL website or through apps that provide instant access to your credit score. Knowing your score will help you plan and improve your credit profile over time.
Can You Get a Personal Loan with a Low CIBIL Score of 550?
A CIBIL score of 550 is considered low, which may restrict your loan options. However, it’s a misconception that you can’t get a personal loan with a low CIBIL score. Lenders are increasingly flexible and may still approve your loan application, though the interest rates could be higher, or the terms stricter.
Steps to Secure an Instant Personal Loan with a Low CIBIL Score
If you’re looking for an instant personal loan but have a low CIBIL score, here are some tips to enhance your eligibility:
- Apply with a co-applicant: Adding a co-applicant who has a high CIBIL score can improve your loan approval chances and might even reduce the interest rate.
- Opt for secured loans: If possible, apply for loans that accept security, like fixed deposits or insurance policies, as collateral, which can help mitigate your low score.
- Choose lenders carefully: Research lenders who are more lenient with low CIBIL scores, such as non-banking financial companies (NBFCs) or digital lenders.
- Limit multiple loan applications: Frequent loan applications
How to get Personal Loan with low CIBIL score?
- Opt for a lower personal loan amount: Availing a personal loan with low CIBIL Score is not an impossible task. Instead of applying for a loan with a high amount, choose to opt for a personal loan with a lower amount. Smaller amounts give the lender confidence regarding the repayment of the loan.
- Show income proof:To get approved for an instant loan for low CIBIL score, ensure that you give the lender proof of income. Provide your salary slip for 3 months as income proof.
- Get a joint loan:Apply with a co-applicant or guarantor. You can avail of a low CIBIL score instant loan by applying with a joint applicant. You can apply for a loan with your parents, spouse, or siblings. The co-applicant, however, needs to have a high CIBIL score at the time of application.
- Request your lender to consider your case with NA / NH in the credit score report:
NA or NH in your CIBIL score indicates Not Available or No History. If you are applying for a low CIBIL score personal loan, speak to the lender if this can be considered in your application. However, to be approved of NA or NH in credit score you will need to show high income as well as stable employment to the lender. - Resolve errors in a credit report:If you feel that your CIBIL Score is incorrect, get it rectified before applying for a personal loan. Resolving any errors after application would be wasting precious time.
Eligibility to get Personal Loan for low CIBIL score :
To be eligible for a personal loan for a low CIBIL Score, you should be able to check the below points:
- Employment:To be eligible for an instant loan with low CIBIL, you will need to be employed in a private, public, or LLP organisation.
- Income:
To avail a low CIBIL loan, you will need to show the lender that you receive high income every month. Having a high income shows the lender that you are capable of repaying the personal loan. - Employment Proof:Lenders need proof that you receive a good salary every month. Your salary slip for 3 months is proof that you will need to provide to be eligible for an instant personal loan for a low CIBIL score.
- You can apply for a personal loan with a CIBIL score as low as 550. While many NBFCs ask for a high CIBIL score, Finnable provides personal loans with low CIBIL score or no CIBIL report. However, it is important to know how to improve CIBIL score.
- You can avail a loan with low CIBIL by applying online. To be eligible for a personal loan for a low CIBIL score, you need to be employed at your current organisation for more than 3 months and have a total experience of more than 6 months. You’re also required to have a monthly salary of more than Rs 25000. You will need to show proof of salary by providing your salary slip as well as the bank statement.
- At Finnable, we aim to provide finance to those who require it and can repay it in a timely manner. A CIBIL score shouldn’t be an obstructing parameter for anyone who requires funds. This is why availing a personal loan for a low CIBIL score through Finnable is possible. You can use the funds to plan a wedding, for education, home renovation, etc.
