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Good CIBIL Score and Personal loan – 5 ways to get a personal loan with a low CIBIL score

A good CIBIL score is crucial if you plan to take a personal loan but are worried about a low CIBIL score. Here you are with all the information you need before applying for a Personal loan.

Where to get a personal loan: better online or in a branch?

The loan is the money borrowed with a promise to return it in a specific period. So, whenever you need a loan, you mostly head towards banks because everyone considers it a trustworthy source. But the question arises how does a bank will consider you as a trustworthy person to lend money to?

So, banks check your ability to pay loans through your CIBIL score or credit score. This score reflects your credit history and gives an idea to the banks or lenders whether you are capable of repayment of the loan or not.

What is a good CIBIL score, and why it is important?


What is good  CIBIL Score or Credit Score
cibil score ranges from 300-900

CIBIL Score and credit score are often used as synonyms, whereas CIBIL stands for TransUnion CBIL ltd. It is an Indian company that has the information of all your financial transactions. This company is considered one of the most trusted sources for credit information that is called a credit source. However, other companies also find credit scores. It is a three-digit numeric indicator of your credit history. It shows your credit and credit handling behaviour like whether you pay your loans or not, repaying credit card dues, etc.

CIBIL score ranges from 300 to 900. A good CIBIL score Reflects that repayment of your previous loans and EMIs have been paid on time. When you have a good CIBIL score, the chances of the bank approving your loan increase considerably. In contrast, lower CIBIL scores impact your loan approval chances significantly.

Banks provide different kinds of loans for various purposes like educational loans, vehicle loans, collateral loans, home loans, Personal loans, etc. These are divided into Secured and Unsecured loans.

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Secured loans are those where we keep collateral and pledge an asset as security for the money we borrow from the banks or lenders, so if we cannot pay the loan back, they have some means to get back their money. Even interest rates for secured loans are lower than Unsecured ones.

Examples of secured loans are: –

  •    Home Loans
  •    Loan against Property
  •    Loan against Insurance Policies
  •    Gold Loan
  •    Loan against mutual funds or shares
  •    Loan against fixed deposits

Unsecured loans are those where we don’t require collateral, and loans are provided on our past credit scores. Even the interest rate of unsecured loans is higher due to the lack of collateral. Here good CIBIL score plays a crucial role and is one of the essential factors to receive this loan.

Examples of unsecured loans are: –

  •    Personal loan
  •    Flexi loan
  •    Education loans
  •    Vehicle loan

Personal loans are the most common unsecured loans that give you instant money. Since it is an unsecured form of loan and lacks any collateral, it charges high interest. It also requires a good CIBIL score and secure income to avail this loan. The problem arises when you need a loan urgently but have a low CIBIL score.

What a personal loan costs youHere are ways to apply for a loan from the bank despite having a lower CIBIL score and decreasing your chance of rejection of the filled application.

1. Show regular income or reliable sources

Banks or lenders want to ensure their repayment of loans. Show a regular income, whether you are a regular salaried professional or a self-employed person. If you have a consistent source of finance can negotiate with the Banks or lenders about the repayment of the loan amount. Stable income can convince banks to consider your application.

2. Demand for a lower personal loan amount

Demanding a higher amount increases the risk involved with the repayment to the bank, and this may indicate to the bank that you may default during repayment. When you demand a lower personal loan amount, banks are more comfortable due to low risk and high probability of repayment, so the chances of your loan approval increase.

3. Apply with a co-applicant or a secure guarantor

In cases where you have a low CIBIL Score but has a co-applicant or a guarantor with a good CIBIL score or a regular income, banks are more likely to grant loans relying on your guarantor

4. Ask your bank to consider your case with NA or NH in your CIBIL score.

NA or NH in your CIBIL score shows no credit activity or lack of credit in the past 36 months. You may not have enough credit scores in your CIBIL report in such cases. You can talk to the banks and convince them to lend the loan amount here. In such conditions, loans are considered with high interest. It is always asked to compare the interest with different banks for the safer side and save yourself from paying high interest.

5. Know The Relation Between your Employer and Lender

Good research before applying for a personal loan can save you from the hustle you would face during the application process. For example, if you work in a reputed firm and have connections, banks may consider your loan application despite having a lower CIBIL score.

6. CIBIL/credit score of your spouse/children

Same as co appellant or guarantor, you can ask the bank for a loan showing your spouse or children’s CIBIL score, which is higher or satisfactory to give a loan. This can be processed by making your spouse or children stand as a combined loan holder. 

Despite all these tries, if your loan application gets rejected, you can apply for a secured form of loan by keeping collateral. E.g., loans against property, fixed deposits, etc. Even if you don’t have a good CIBIL score with a lower interest rate, these loans can be availed.


However, these measures can help you avail of the personal loan but make sure you have the amount to pay back the loan. You can take the help of various EMI calculators that helps you to calculate your loan +interest value which is the amount you pay back to the loan. Else your CIBIL score will suffer again. As a last resort, you can always pledge assets, e.g., jewellery, property, etc., to avail a personal loan.

Edited by Prakriti Arora





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