Posted on: May 16, 2020 Posted by: Arthayana Editorial Comments: 0
Get Low CIBIL Score Loan

Even if you are unable to self repair credit score or improve CIBIL score, do not be discouraged because there are banks and NBFCs that are interested to give a low CIBIL score loan to meet your financial needs. 

Not everyone has the perfect CIBIL score and financial institutions understand this. Less than half of the working population between 20 and 65 years of age has a 750+ CIBIL score. There is an immense credit opportunity which is why financial institutions are eager to give credit facilities to people even with less than desirable credit score.

Yes, the loan application review time and the rate of interest will be higher but it is worth trying.

Ways to Get Low CIBIL Score Loan

Remember that there is no guarantee that you will get a low CIBIL score loan and every hard inquiry will reflect on the credit information report; therefore, proceed with caution. 

Here are few ways to get low CIBIL score loan:

Low CIBIL Score Loan
Source: YouTube

#1 Have a co-applicant 

It gets easier to get a low CIBIL score loan if the application is made in partnership with someone with a better credit score (750+). The person could be anyone – your parents, spouse, adult kids, friends, and relatives. The other person becomes a co-applicant in the loan application and chances of approval drastically improve because the other applicant has an outstanding CIBIL score. The co-applicant has to submit KYC documents, sign the loan deed, and pay the EMI’s on time. Remember than if there is a delay in repayment, the credit score of the co-applicant will be spoiled. 

#2 Have a guarantor

Unlike the above process, a guarantor is not a co-applicant. The low CIBIL score loan is approved solely in your name but in case you fail to return the loan, the guarantor will become legally liable to pay the outstanding loan. The guarantor has to deposit their documents and sign the guarantor deed. Guarantors with fixed income such as a government employee are preferred by financial institutions for this arrangement. 

#3 Convince the lender of income stability 

A poor credit score is the result of past repayment mistakes. If in the present, you have a better salaried job and stability, you can use the employment history with the current company and salary pay slips to convince a potential lender to consider a low CIBIL score loan. Of course, the interest will be higher but nothing can be done about it. Giving the unsecured loan will be a credit risk for the lender; hence, the higher interest rate. The lender might even want a letter from the HR of the company as a proof of your submitted employment history.

#4 Company tie-ups 

If you are working with a reputed corporate or a multinational, chances are they already have partnerships with leading banks and NBFCs to meet the financial needs of its employees. Inquire with the HR of any such facility. The benefit is that since you are already working with the company and have been background verified, getting a low CIBIL score loan becomes far easier. 

#5 Collateral loans

You can get a low CIBIL score loan against existing collateral such as a gold deposit, term deposits, insurance policies, recurring deposits or fixed deposits. These days most banks offer 80% to 90% loan availability against existing recurring deposits and fixed deposits. All you need to do is approach the bank or apply via their banking websites. If approved, the money is in your savings account within 24 hours. 


Do not get discouraged if you have a low CIBIL score. It is not impossible to get a low CIBIL score loan with the right method.

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