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Personal loan for low CIBIL score: What lenders really look for

Key Takeaways

A credit score measures your ability to repay the loan, with scores below 650 considered very low.
Personal loans for low CIBIL score applicants are available, although they may come with unfavourable terms.
You can get a loan with a low score by adding a co-applicant, choosing secured loans, seeking lower loan amounts, and shopping around.
It is prudent to build your credit score over time to improve your personal loan eligibility for the future and unlock better options like a FIRSTmoney personal loan.

29 Apr 2026 by Team FinFIRST

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If you have a good credit score, you can get quick loans at favourable interest rates. But what if you have a low credit score? Would you still be able to get a personal loan for your needs?

The truth is, you can. Nowadays, banks take a more holistic view of your finances and even offer personal loans for low CIBIL score applicants. However, there are some caveats involved.

Let’s unravel how your credit score impacts loan eligibility, the effects of a low score, and how to navigate the same.

CIBIL score for personal loan: What can an excellent score do for you?

How to Improve CIBIL Score from 600 to 750 Quickly

Credit score: Why and how does it matter?

A credit score is like your financial report card. It tells lenders how reliably you handle borrowed money. Your creditworthiness is evaluated based on factors that reflect how consistently you repay what you owe, including:

● Past repayment history

● Existing credit usage

● How long have you used credit

● Types of credit you have, etc.

In India, credit scores are monitored by credit bureaus such as CIBIL (TransUnion CIBIL), Equifax, Experian, and CRIF High Mark. Among these, the CIBIL score is the most widely referred to by lenders. Here’s how it's categorised and what each range means:

Score	What it means
NA/NH or -1	This means you have no credit history or have never taken a loan/credit card. Lenders may find it hard to assess your risk profile.
300 to 549	Poor. This range reflects weak credit behaviour and signals significant risk to lenders; getting a loan approved is highly improbable.
550 to 649	Average. This score suggests a somewhat unstable repayment record; lenders may still offer credit, but usually with tighter conditions, smaller limits, and higher interest charges.
650 to 699	Fair. A score in this range suggests some inconsistencies in repayment; lenders may approve loans but with caution and stricter terms.
700 to 750	Good. It shows responsible credit behaviour; you have a decent chance of securing loans at competitive rates.
750 and above	This is an excellent score that reflects strong repayment discipline and low credit risk; you’re more likely to get faster approvals, higher loan amounts, and better interest rates.

A strong credit score plays a crucial role in personal loan approval. While lenders may still consider a personal loan for low CIBIL score applicants, the process is tougher and often comes with stricter conditions. A higher score gives you more control, choice, and affordability.

Is it possible to get a personal loan for a low CIBIL score applicant?

A low CIBIL score does not have to be a dealbreaker. While your credit history plays an important part in personal loan approval, lenders consider several other factors when evaluating your application.

Some of these include:

● Income

If you have a high and stable income, you might still be eligible for a loan.

● Existing debts

Having no or limited existing debts makes it favourable to secure a personal loan with a low credit score.

● Occupation

If you are salaried with a stable job in a reputable company, you can still secure a loan, even with a low score.

● Existing relationship

Having an existing relationship with the bank also works in your favour. If you are a long-standing customer, banks may be more willing to extend the loan.

Strengthening these areas can help secure a personal loan for low CIBIL score applicants, too. However, the lender may offer higher interest rates, limited funding, or shorter repayment tenures based on your overall financial profile.

Smart tips to secure a personal loan for low CIBIL score applicants

Having a low credit score is not the end of the road, though it can be a hurdle. Here are some solutions to get a personal loan that you can try to improve your chances:

● Opt for a secured loan

A secured loan is one that is backed by collateral. In other words, you pledge an asset that you own and get a loan against its value. If there are repayment defaults, the lender can sell off the pledged asset to realise the outstanding loan.

Since a secured loan has minimal default risks for the lender, you’re more likely to get approval at a favourable interest rate.

● Add a co-applicant

A co-applicant is a joint borrower. The co-applicant’s eligibility gets added to yours, which increases your overall personal loan eligibility. If the co-applicant has a high credit score, the overall score is averaged out, and your chances of getting a personal loan as a low CIBIL score applicant increase.

● Seek a lower loan amount

If your credit score is low, it is better to limit the loan amount. Lower loan amounts carry relatively less default risk and are approved more easily.

● Prove financial stability

Show the lender that you have a stable source of income with minimal existing liabilities. This improves your financial standing, allowing you to get the loan.

● Shop around for lenders

Different lenders have different eligibility criteria and loan offers. Shop around to find a lender willing to offer you the desired funds on favourable terms.

Ways to improve credit profile over time

While there are solutions to get a personal loan for a low CIBIL score applicant, it’s important to rebuild your credit history simultaneously. This not only improves your chances of future loan approvals but also helps you access better rates and higher credit limits over time.

Some ways to build your credit score include:

Clear your credit card bills and loan EMIs in full and on time
Keep your credit usage low, preferably below 30%
Do not apply for multiple loans at the same time
Maintain a good mix of unsecured and secured debts in your portfolio
Review your credit report regularly to weed out errors and keep track of your score

When you build these financial habits over time, your credit health improves and positions you as a more reliable borrower, making it easier to secure loans on better terms in the future.

Rebuild your credit score to unlock a FIRSTmoney personal loan

Rebuilding your credit history and moving to a higher CIBIL score bracket has a lot of advantages, including unlocking convenient borrowing options like a FIRSTmoney personal loan. Offered by IDFC FIRST Bank, this is a personal loan that is designed for borrowers who want fast, flexible, and affordable credit with maximum convenience.

Here’s what makes the FIRSTmoney personal loan stand out:

Interest rates starting at 9.99% p.a.
Get up to ₹15 lakh, instantly disbursed within 10 minutes
Flexible personal loan tenure options ranging from 9 to 60 months
No documentation, only PAN and Aadhaar number for application and display of physical PAN card during video KYC
100% digital application process with quick video KYC
Zero foreclosure charges
Withdraw funds multiple times and pay interest only on what you use

Eligibility for a FIRSTmoney personal loan is simple and straightforward: you can apply whether you are salaried or self-employed, fall within the 21–60 years age bracket, and have a CIBIL score of 710 or above. While it may not be suitable as a personal loan for low CIBIL score applicants, it’s an excellent goalpost for anyone actively rebuilding their credit.

Navigating low credit scores smartly

A low CIBIL score can make borrowing challenging, but getting a personal loan for low CIBIL score applicants is still possible. Exploring options like secured loans, adding a co-applicant, or comparing lenders can improve your chances, while rebuilding your credit score will help you qualify for better rates and quicker approvals over time.

Choose the right lender for a seamless borrowing experience, apply for a FIRSTmoney personal loan and meet your financial needs without worry.

Frequently Asked Questions

How long does it take to improve your credit score?

It usually takes 6 to 12 months to improve your score if you use credit wisely and improve your credit behaviour.

What is the minimum credit score required for a personal loan?

The minimum credit score requirement varies across lenders. For instance, the FIRSTmoney personal loan is available with a minimum score of 710. You can check the eligibility criteria of different lenders to find the minimum score required.

Can I apply for multiple loans at the same time?

Yes, you can apply for multiple loans at the same time, but it’s not advisable because each application triggers a hard inquiry on your credit report. Multiple inquiries within a short period signal higher credit risk to lenders and can lower your credit score, making future approvals harder.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.