The most difficult thing is getting a personal loan with a low credit score. But, 24hrLoan provides instant personal loans at a bad credit score. So, the answer is yes. You are eligibile for a loan with a low credit score. Let’s explore this in this article.
How to Understand the Impact of a Low Credit Score
CIBIL score is like a prescription. The doctor understands the patient’s health issue through prescription. Also, lenders can understand borrowers’ financial repayment conditions from credit scores. Most lenders in India consider a CIBIL score of 720+ to be good. But certain lenders offer low credit score personal loans from 650 to 700 score.
Get an Instant Personal Loan with a Low Credit Score
Explore the below tips to be eligible for an instant personal loan with a low credit score:
1. Apply with NBFCs or Digital Lenders
24hrLoan connected with multiple Banks & NBFCs companies. Some of our selected lenders provide loans with low credit scores. Lenders like Faircent, WeRize, Finnable, SMFG, and Bajaj Finserv offer low CIBIL score loans. They often evaluate factors like income stability, employment, and banking transactions rather than just credit scores.
2. Get a Secured Loan
Collateral loans such as mortgage loans, fixed deposit loans, gold loans, and loans against cars can improve your approval chances. You can opt for a secure loan with a bad credit score. Lenders feel more secure when they have an asset as a guarantee.
3. Apply for Lower Loan Amount
You can go for a smaller loan amount reduces the risk of loan cancellation. Borrow a lower loan amount to increase the loan approval chance. For example, if you apply for ₹50,000 instead of ₹5,00,000, your chances improve.
4. Get a Co-Applicant or Guarantor
Easily increase your loan approval chance by adding a co-applicant or guarantor (such as a family member). However, the co-applicant credit score must be good.
5. Use ‘Credit Builder’ Loans to Improve Score
Some lenders provide small personal loans with low scores. You can boost your credit score with the help of a small loan. But, repayment time must be on time.
Top Lender Provides Personal Loan at Low CIBIL
| Lenders | Interest Rate (p.a.) | Salary | |
| WeRize | 16% to 18% p.a. | Rs. 12,000 | Apply Now |
| MoneyView | 1.33% per month | Rs. 13,500 | Apply Now |
| InCred | 11.49% to 18% p.a. | Rs. 15,000 | Apply Now |
| Fibe | 24% to 30% p.a. | Rs. 15,000 | Apply Now |
| Prefr | 18% to 36% p.a. | Rs. 18,000 | Apply Now |
| Finnable | 16% to 22% p.a. | Rs. 15,000 | Apply Now |
| IDFC | 12.50% to 18% p.a. | Rs. 15,000 | Apply Now |
| PaySense | 1.4% to 2.3% per month | Rs. 18,000 | Apply Now |
| Upward | 9% to 32% p.a. | Rs. 18,000 | Apply Now |
How to Improve Your CIBIL Score
You can easily improve your credit score with the following hidden tips:
- Pay your credit card bills on the due date.
- Always be aware to use credit card limits within 30% of the credit utilization ratio.
- Don’t obtain a loan too much.
- Try to maintain low inquiry on your CIBIL score.
Final Thoughts
Getting an instant personal loan with a low credit score is possible, but it requires applying a hidden strategy. Consider NBFCs, secured loans, income proof, co-applicants, or alternative lenders. Before applying, compare lenders, read terms & conditions carefully, and ensure you can repay on time to avoid further credit damage.
Would you like help in identifying lenders offering such loans in India? Let me know!