Over the years, a personal loan has become one of the most accessible and quick financial solutions, especially for obtaining funds for emergencies. From covering medical expenses to urgent home renovation or debt consolidation, this loan helps manage all expenditures without going out of pocket or breaking the bank. Since these loans are unsecured and don’t require collateral, many lenders consider the credit score of an applicant to determine their creditworthiness.
Many individuals with low credit scores (potentially less than 700) face challenges when applying for loans, but this doesn’t mean there aren’t other ways to secure loan approvals. In this article, we’ll explore some of the pro tips for getting a personal loan at a low CIBIL score and understand how you can improve the same.
Understanding CIBIL Score
A CIBIL or credit score is a three-digit number, ranging from 300 to 900, used mainly by lenders to understand and summarise the credit history of the loan applicant. This helps the lenders analyse whether the borrower will be able to repay the loan and indicates their financial stability. A score of more than 700 is considered ideal for users to apply for credit via an online loan app at flexible terms and better rates.
Can You Get a Personal Loan at a Low CIBIL Score?
Indeed! Many platforms offer loans to those with lower scores. Borrowers can increase their chances of getting a loan, even at a low CIBIL score. Here’s how:
- Research and Compare: Take the time to do your research and look for lenders that offer credit to those with low credit scores. Many financial institutions and low CIBIL score app provide an opportunity to borrowers with a score of less than 700 to apply for funds.
- Lower Loan Amount: Applying for a smaller loan amount increases your chances of approval, even when you have a lower credit score. Lenders frequently provide credit with a manageable limit, as this lowers the risk of default.
- Show Stable Income Proof: Showing a stable income and a low debt-income ratio assures the lender that you can repay the loan in a timely manner. Ensure that you attach your latest salary slips or bank statements when applying for credit via an online application.
- Consider a Co-Applicant or a Guarantor: If you know someone who has the best CIBIL score, consider adding them as a co-applicant, as it improves the chances of getting a loan at better interest rates and even flexible terms. A co-applicant or guarantor guarantees the lender that the loan will be repaid in case of default.
- Maintain a Good Relationship and Negotiate with Your Lender: Borrowers who have established a long-term relationship with their lender or financial institution are seen as loyal customers and have the ability to negotiate, even with a low CIBIL score.
Also Read: How Personal Loan Apps Are Becoming Financial Lifesavers in 2025
Tips to Improve Your Credit Score
Make sure that you are familiar with the following practices to improve your CIBIL score and increase your chances of getting quick personal loan approvals at better terms:
- Pay all your previous loan EMIs and credit card bills, as they can significantly impact your credit score.
- It's recommended to use no more than 30% of your approved credit limit.
- Avoid making multiple loan applications, as it negatively influences the score.
- Review your credit report regularly to see if any discrepancies or errors can be fixed right away.
Final Thoughts
Having a low credit score doesn’t mean you have run out of opportunities and can’t get a loan. If you have a stable income, take a lower loan amount, maintain a good relationship with the lender, or have a strong co-applicant, you can increase your chances of getting a loan.
Look for trusted online loan app like Stashfin, which offer a 100% digital loan application, approval, and quick disbursement and allow borrowers to check their credit reports and get detailed insights to manage them.