Struggling with Low CIBIL Score? Here’s How to Still Get a Personal Loan in 2025
Personal Loan with Low CIBIL Score: Getting a personal loan in India with a low CIBIL score can feel like a big headache, but don’t worry. In 2025, there are still ways to get the personal loans, even if your CIBIL score is low. Below, we’ve provided complete information to guide you.
What Is a CIBIL Score and Why Does It Matter in 2025?
First, let’s get this straight: Your CIBIL score is like your financial report card. It’s a three-digit number, from 300 to 900, that shows how well you’ve handled money in the past. A higher score, especially 750 or more, means banks and lenders trust you more.
A low score, usually below 600 or 650, makes them a bit hesitant because it signals higher risk. Based on Recent Updates, the Reserve Bank of India (RBI) has made it even more important, with some banks now preferring scores of 725 and above for unsecured loans.
Can I really get a personal loan with low CIBIL score in 2025?
Yes, it’s possible! While traditional banks might be a bit strict, there are other options. You might not get the absolute lowest interest rates, but getting a loan is still on the cards. Your CIBIL score is not the only factor that lenders consider. They also check your income, job stability, and whether you have other loans.
Where to Get a Personal Loan with Low CIBIL Score
If banks are saying no, don’t lose hope. There are some places that might say yes:
Non-Banking Financial Companies (NBFCs) and Digital Lenders
NBFCs are like financial companies that are not banks. They are often more flexible when it comes to lending money, even if your CIBIL score is low.
They look at things like your regular income and how stable your job is. Many NBFCs and new Loan apps offer quick loans with less paperwork. Some popular ones that are known to be more lenient include
- Fairassets Technologies India (i2i Funding)
- NDX Financial Services (LiquiLoans)
- Bajaj Finserv
- StashFin
- Faircent
- KreditBee
- Navi
- MoneyTap
- Dhani Loans
- Money View
- CASHe, EarlySalary, PaySense.
These apps can give you loans ranging from a few thousand rupees up to ₹5 lakh or even more, with quick disbursal, sometimes within 24 hours. They often have fully digital application processes, which means less hassle for you to getting Personal Loans.
Try Secured Loans (Gold, Property, FD
If you have something valuable like gold or property, you can get a “secured loan.” This means you put up your asset as security.
Since the lender has something to fall back on if you can’t repay, they are more willing to lend, even with a low CIBIL score. The interest rates for secured loans are usually lower compared to unsecured ones.
Getting a co-applicant or guarantor
If you have a family member or friend with a good CIBIL score who is willing to co-sign your loan, it can really help your chances. When someone with a good credit history backs your loan, the lender feels more secure.
Key Tips to Improve Loan Approval Chances with Low Credit
Even if you have a low CIBIL, There are some things that can make your application stronger:
- Stable Income: Lenders love seeing a steady job and a regular income. It shows you can repay the loan.
- Less Debt: If you already have a lot of loans, try to pay some off before applying for a new one. A lower debt-to-income ratio is always better.
- Proof of Income: Be ready with your salary slips, bank statements, and income tax returns (ITR) to show your earning capacity.
- Avoid Multiple Applications: Don’t apply for loans everywhere at once. Each time you apply, it creates a “hard inquiry” on your CIBIL report, which can temporarily lower your score further. Be smart and apply only where you think you have the best chance.
How to Improve Your CIBIL Score for Future Loans
While you can get a loan with a low CIBIL, it’s always best to work on improving your CIBIL score. A good CIBIL score means lower interest rates and better loan options in the long run. Here’s how you can improve your Cibil score:
- Pay Your Bills on Time: The most crucial thing is to pay your bills on time. Pay your credit card bills and EMIs on time or ahead of schedule. Your score might be severely impacted by even one late payment.
- Keep Credit Card Use Low: Try to use less than 30% of your total credit card limit. For example, if your limit is ₹1 lakh, don’t spend more than ₹30,000.
- Check Your CIBIL Report: Look at your CIBIL report regularly for any mistakes. If you find any, report them to CIBIL immediately to get them corrected.
- Don’t Close Old Accounts: If you have old credit cards or loans with a good payment history, try to keep them active. A longer credit history helps your score.
In conclusion, having a low CIBIL score doesn’t mean you’re stuck. While it might take a bit more effort and slightly higher interest, there are still options for getting a personal loan with a low CIBIL score in India in 2025.
