"Bad CIBIL score? No problem! Find out how to secure a personal loan with bad credit and the minimum CIBIL score you need to qualify. Read how My Mudra helps you get instant personal loans from different partners."
Published: 29 August 2023
Updated: 20 March 2025
Suppose you are in urgent need of funds to settle the medical bills and decide to apply for a personal loan. However, you are worried that your low CIBIL score will become a hurdle. Well, you are not alone in this. Today, many people experience challenges due to low credit scores, making it difficult to secure a loan. The good news? A bad CIBIL score does not mean you are out of options.
While banks may be reluctant to approve your loan application, there are several lenders that will give you funds. With the advancement of financial services, NBFCs (Non-Banking Financial Companies) and peer-to-peer lending platforms have made it easy to avail a loan with a low credit score. You only need to know where to look for it.
So, if you are still wondering how to get personal loan with bad CIBIL score, read this blog. We have listed down the reasons why a low CIBIL score is a problem and a few lenders that will provide you with financial support during tough times. So, ready to find an ideal solution?
Need personal loan with bad CIBIL score? First, understand why low credit scores make banks turn away. Here are a few reasons:
1. Higher Risk, Lower Approval Chances: CIBIL score is like a report card, highlighting the financial behaviour of an individual to lenders. A low score indicates excessive debts, late payments, and defaults. Banks and NBFCs consider such borrowers a high risk, making them sceptical about approving loans.
2. Limited Loan Amount: Beyond impacting the loan approvals, a low score also affects the loan amount. For example, if you need ₹7 lakh to cover home renovation but due to a minimum CIBIL score for personal loan, you get approval for ₹3 lakh.
3. More Documentation and Collateral Requests: A low CIBIL score often comes with strict terms and conditions. Lenders may demand proof of income, employment details (past and present), and even a guarantor to evaluate the risk. Sometimes, they may ask you to put up collateral to secure the loan.
4. Skyrocketing Interest Rates: If banks or NBFCs approve your personal loan with bad CIBIL, they may charge a hefty interest. A borrower with a credit score of 750 might get approval at a 10% interest rate, while a borrower with 620 scores might be charged 20%.
All the above factors turn personal loans into an uphill battle.
Rejected by banks because of a poor credit history? Do not lose hope! Let us explore which bank gives personal loans with bad credit in India and fix your cash crunch.
Known to offer credit to salaried professionals, CASHe is a digital financial service platform with minimal paperwork. This lending company evaluates the social loan quotient (SLQ) rather than just relying on credit scores. With CASHe user-friendly, you can apply for personal between ₹7,000 to ₹4,00,000 at an interest rate ranging from 15% to 30%.
Online process, hassle-free documentation, and quick disbursal - CASHe makes the loan process a breeze.
When it comes to applying for a personal loan with bad CIBIL score, PaySense is suitable for small and large financial needs. It offers credit from ₹5,000 to ₹5,00,000 at an interest rate of 16% to 24% with easy EMI options and less documentation. The good part? Beyond creditworthiness, PaySense also evaluates the income stability of low CIBIL profile applicants.
From digital processes to monitoring repayment features, it always keeps your financial behaviour in check.
What if you get to know there is a financial lending platform that offers need-based credit? Yes, MoneyTap provides personal credit lines instead of conventional loans. People with low CIBIL scores can avail loans of up to ₹5,00,000 at an interest rate between 13% and 24%, making it a go-to choice for many. Plus, it gives access to instant pre-approved offers, allowing you to withdraw as much need and pay interest only on the used amount.
Interesting, Right?
If you are in need of urgent funds but a low credit score is becoming a hurdle, LazyPay can save your day. Popular as the "Buy Now, Pay Later" platform, it provides personal loans of up to ₹1,00,000 at an interest rate of 18% to 30% with minimal paperwork and quick approval. LazyPay determines spending patterns and income stability beyond the CIBIL score. All you need to do is download the app, fill in your details, and enjoy the instant loan disbursement.
Need personal loan with bad CIBIL score to restock the seasonal demand for raincoats or how to pay for unexpected medical bills? Look no further than Fullerton India. It is a prominent NBFC that offers loans of up to ₹10,00,000 at an interest rate ranging between 12% and 24%. Available to both salaried and self-employed people, Fullerton understands financial emergencies and ensures less documentation and an instant approval process.
Keep your income stable and financial behaviour in check; you are good to get the loan.
Everyone might have heard about Bajaj Finserv, and when it is about availing loans with low CIBIL scores, this company is a go-to choice for all good reasons. This NBFC offers personal loans and credit lines of up to ₹40,00,000 at an interest rate of 14% to 26%. With their Flexi Loan feature, you only pay for interest on the used amount instead of the full credit amount. The result? It reduces the overall burden of monthly EMIs, delivering financial stability. Plus, quick disbursal and minimal documentation is a bonus.
Getting a personal loan with bad CIBIL score might feel like a tough climb, but it is not impossible. With the right approach - exploring alternative lenders, improving your financial habits, and considering secured or co-signed loans, you can boost your chances. Remember, every small step toward better credit health opens new financial doors. So, do not let a low score hold you back; instead, strategise on how to build a stronger financial future and look for the right options to cover the financial crunch. Start your journey today!
