Does a Low CIBIL Score Prevent You from Getting a Personal Loan?

A common concern is whether a low CIBIL score makes them ineligible for a personal loan. The answer to this is quite tricky. Multiple factors can affect your chances of obtaining a personal loan with a low CIBIL score. Although getting any loan with a low CIBIL score is challenging, it is not impossible. A few strategies can help applicants avail of personal loans with a not-so-good score on their CIBIL report.

So, let’s first understand the framework of CIBIL score for personal loan and get the loan without worrying about the CIBIL score.

Understanding CIBIL scores

CIBIL score refers to a 3-digit number that ranges from 300 (lowest) to 900 (highest). Your CIBIL score is in the credit information report (CIR). Having a CIBIL score of at least 750 or above is considered good and increases your personal loan approval chances at lower interest rates. When you pay all your loan EMIs and credit card bills on time and maintain a long-standing history of loan accounts, your CIBIL score will likely increase over time.

What happens when you apply for a personal loan with a low CIBIL score?

When you approach a lender for a loan, the first thing they check is your CIBIL report and score. You will be considered a high-risk candidate if you have a low CIBIL score. It is difficult for you to avail of an easy personal loan with a low CIBIL score in such a scenario, or even if it gets approved, you’ll be charged a higher interest rate. The lender also looks into your credit history, including repayments, loan defaults, and previously closed loans. Also, the percentage of your income that goes into repayments will be considered. All these factors decide whether your CIBIL score for a personal loan is adequate to get you the loan approval.

You’ll also find lenders that offer easy personal loans online with low CIBIL scores but very high-interest rates. That may seem tempting initially, but it can derail your budget in the longer run.

Factors that affect your CIBIL score

Many factors can affect your CIBIL score; a few important ones are:

  • Irresponsible Payment Behaviour
  • High Credit Utilisation Ratio
  • Outstanding Debt
  • Paying only the Minimum Amount Due
  • Making Multiple Credit Applications
  • Errors in your CIBIL Report
  • Not Having a Credit Mix
  • Length of the Credit History

How to get a personal loan with a low CIBIL score?

In case you fail to maintain an adequate CIBIL score for personal loan borrowing, here are a few strategies to get a personal loan even with a low CIBIL score: 

If you have a stable monthly income source, state that in your loan application. You can attach your monthly salary slip, employer’s details, etc. It helps lenders verify whether you can return your repayment amount on time. In this scenario, the lender might not consider a low CIBIL score as a deal-breaker. But note that this type of loan usually comes with higher interest rates.

Another effective way is to apply for a lower personal loan amount. This way, lenders can also stay on the safe side if a borrower defaults. Getting loan approval with a low CIBIL score and a lower personal loan amount is easier.

Apply for a personal loan along with a reliable guarantor or co-applicant. Ensure your guarantor has a credit score of 750 and above.


A high CIBIL score is required to obtain personal loan approval at affordable interest rates. It is preferable to be consistent and timely in your payments. However, if you have a low CIBIL score and are time-strapped to improve it, you can use the abovementioned strategies. It’s important to remember that you must make all of your repayments on time once you’ve received the loan amount. It will help you improve your CIBIL score to get personal loan approval quickly.

If you have a personal loan requirement and have a low CIBIL score, turn to an NBFC like EarlySalary to get a quick instant loan approval at competitive interest rates and the option to choose a flexible repayment tenure. Apply now!

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