A low score tells a lender there have been problems with repayment or credit use in the past. Many lenders have a cut-off for unsecured loans, so a low score can mean a smaller offer or a "no". But the score is not the only thing that counts.
First, find out why your score is low
Get your free credit report and look for the reason — how to read your CIBIL report. If a lender has already said no, read the common reasons a personal loan is rejected:
- Late payments (DPD) in recent months
- A written-off or settled account
- Very high credit card use
- Too many recent loan applications
- An error — a closed loan still shown as open, or an account that isn't yours
Errors can be corrected through the bureau's free dispute process.
What lenders may weigh besides the score
- Stable, verifiable income — regular salary credits or business inflows
- Low existing EMIs compared with income
- Clean recent behaviour — the last six to twelve months matter most
- Banking history shared through Account Aggregator, showing your real cash flow
Ways to improve your chances
- Ask for a smaller amount with a comfortable EMI — check with the loan eligibility calculator.
- Add a co-applicant with a good score and income, where allowed — see co-applicant vs guarantor.
- Consider a secured option such as a gold loan or loan against an FD for an urgent need.
- Repair first if you can wait — six months of on-time payments and lower card balances can lift your score. See how to improve your CIBIL score.
- Don't apply everywhere — each rejection adds an enquiry and lowers the score further.
Avoid "guaranteed loan for bad CIBIL" offers
Anyone promising approval regardless of your score, for an upfront fee, is very likely a fraud. Read how to avoid loan fraud.