How To Get A Personal Loan Fast With A Poor CIBIL Score In 2022?

personal loan with poor credit score

personal loan with poor credit score


When you apply for a personal loan online, Bank executives will look at your CIBIL score apart from regular monthly income, expenses, creditworthiness, and existing debt burden. CIBIL( Credit Information Bureau India Limited) records and maintains individuals’ credit scores who take loans frequently. An excellent CIBIL score indicates the stable financial condition of borrowers. On the other hand, a poor CIBIL score means you have defaulted on loan repayments in the past, are going through financial difficulties, your income is insufficient, or have a bad habit of overspending. As a result, banks often reject the loan applications of bad credit people and block their profiles for future consideration.

CIBIL Score Status
750-900 Excellent
650-749 Better
550-649 Fair
350-549 Bad
NA/NH The person has not taken any loan so far.

As mentioned earlier, banks will not approve your application if you happen to be a bad credit borrower. They don’t trust your current financial condition and ability to pay back the borrowed money. They fear losing the loan amount if they issue a personal loan to such borrowers. Is it possible to get a personal loan without CIBIL verification? Let’s analyze now.

Note: Check Credit Score for Free

  • Get A Job With An Excellent Salary Package.

Excellent Salary Package.

Banks have a look at your overall monthly income and expenses before determining a loan amount for you. Most Bank executives expect loan borrowers must have at least 40% savings every month after meeting all essential costs. In today’s ultra-modern world, inflation continues to increase by leaps and bounds every month. People with unlimited monthly income always find it highly challenging to keep their expenses under control and save money.

Therefore you must look for a job that promises a handsome salary package somewhere around Rs.5- Rs10 lakh per annum. This will help you lead a comfortable financial life and build a solid cash reserve. You must also try to increase your income from other resources like renting your house, revenue from the sale of agricultural products, etc. The more income sources you have, the easier it becomes for bank executives to process your application for personal loans despite poor CIBIL scores. Sufficient income and a healthy cash reserve strengthen your chances of getting the requested loan money.

Also Read : Timely Repayment of Loan EMIs: Important Benefits At A Glance!

  • Take All Possible Measures To Repair Your Credit Score ASAP.

Being a bad credit borrower is nothing less than a bane for anyone. Society boycotts such people because of irregular income and undisciplined financial life. Banks and financial organizations will not consider their applications for loan products even if they struggle with some financial problems and need funds on short notice. Therefore you must take all possible steps to improve your credit score as soon as possible. Use the earned money carefully and exercise financial discipline as much as possible.

Avoid overspending and keep a close eye on the incoming and outgoing money every month. Optimize your monthly budget and save money up to 40% of your overall income. Try to pay off all the existing loans as soon as possible, as it will help you get your name out of the list of bad credit people. Consider using the debt consolidation process if you have already taken different loans. This allows you to combine different loans into one and repay the debt burden with reasonable interest fees. When there is no pending loan against your name, it helps to restore a good credit score once again.

  • Look For A Personal Loan With Flexible Terms And Conditions.

Personal Loan With Flexible Terms And Conditions.

A plethora of banks, NBFCs, traditional financial organizations, and peer-to-peer lending websites offer personal loans to many credit borrowers in India with simple terms and conditions. So it is safe to say that there are multiple options when you have to take an instant personal loan online for emergency expenses. You must explore the market and communicate with different credit lenders regarding their offers. Please go through the various deals and determine how they are suitable for your needs. Extensive research and comparing multiple offers will help you choose a personal loan with simple terms and conditions and the eligibility criteria. If you don’t know how to compare different loans, seek help from financial experts.

Also Check: Things to Consider While You Are Checking  Credit Score

  • Request For A Moderate Amount As A Loan

Many times, personal loans are called people’s favorite financial product. Eligible candidates can borrow Rs. 50,000 to Rs. 40,00000 for all emergency financial needs. Such expenses include medical bills, monthly grocery bills, home renovation requirements, foreign trips, education bills, buying much-needed electronics and appliances, etc. When your profile is tagged with a poor cibil score, it’s prudent to downgrade your expectations in terms of the loan amount. If you ask for a loan under your budget and repayment potential, the Bank will happily consider your application and respond to your calls positively.

  • Can You Arrange A Co-borrower With A Good Credit Score?

Good Credit Score

All those individuals who take loans regularly are familiar with the term co-borrower. He is often called the secondary borrower of the loan who is responsible for all the terms and conditions mentioned in the loan contract. In simple words, a co-borrower is the guarantor of the loan. If the primary borrower fails to pay back the borrowed money,  the secondary borrower must abide by the repayment terms and conditions.

When you are a person with a poor cibil score, the presence of a Co-borrower ensures the Bank about the compliance with the loan repayment terms and conditions. But finding a Co-borrower these days is not an easy task as nobody quickly gets ready to put his profile and financials at risk while acting as a guarantor for a loan. You can ask your trusted relative, coworker, and neighbors to work as a guarantor for your loan. You need to pay back the borrowed money at the right time to keep your relationship in good condition. Remember that non-compliance with the loan repayment will force the guarantor to pay your loan using his resources. This will not only spoil your relationship with that person but also trigger new conflicts.

  • Can You Arrange Collateral?

Usually, you can apply for a personal loan without placing any collateral against the borrowed money. The Bank only cares about your present income condition, employment status, credit score, and repayment potential to process your application for personal loans. However, the situation changes dramatically if you happen to be a bad credit borrower. The Bank will never approve your application if they come to know that you have defaulted on previous loan repayments and are trying to get a new loan. In such a situation, you must put collateral against the personal loan. It can be gold, jewelry, property papers, investment documents, hard currencies, diamonds, homes, etc.

The Bank will evaluate the overall value of the collateral and consider giving you a personal loan under your budget. If you don’t repay the borrowed money at the right time, the Bank will capture the property. If you don’t respond to the Bank’s repeated calls for loan repayment, it can sell your property to recover the unpaid money. Collateral placement works as a guarantee for banks, assuring them that the borrower will repay the received money along with all applicable charges and get the right to use valuable properties once again.

Also Read : How Can You Get A Personal Loan Online Without Income Proof?

  • Get A Personal Loan With Higher Interest Fees

Poor CIBIL Score - Personal Loan With Higher Interest Fees

Don’t bargain too much for loans with relaxed interest fees when you need money urgently following unavoidable financial commitments. It might provoke Bank executives to either put your application on the pending list or reject it straightforwardly. Instead, apply for the loan requesting a small sum of money for emergency expenses. To reduce the risk of issuing a loan to bad credit people, the Bank might apply a higher interest fee to the loan amount you want to get. Just accept the deal and sign the loan agreement, as it will help you get the much-needed money and stabilize your financial condition without demanding money from others.

  • Take Expert’s Help In The Loan Application.

Unfortunately, the rate of financial literacy is relatively low in India. That is why people make mistakes while applying for different loans and see their applications getting rejected by banks and financial organizations. If you don’t know how to apply for personal loans, submit documents, and complete other formalities, take the help of independent loan experts and act as per his instructions. It will help you to submit your application rightfully and get the requested money despite a poor cibil score after completing all formalities successfully under his supervision.

Loan application and acquisition is not rocket science, but several people make mistakes during this process. Taking help from an independent loan expert will enable you to communicate with the banker the right way, know more about the loan agreement you will sign, and protect your interest in all circumstances. To get approved for personal loans, you must submit up-to-date and verifiable information in the application form and tell only the truth to bank executives. You can choose an online or offline method to submit your application for personal loans- it’s totally up to you.

A Personal Loan Without CIBIL Verification: Rebuilding Your Credit Score Once Again.

It’s imperative to restore your good credit score once again as soon as possible. The stigma of a bad credit score haunts people in almost every walks of life. That is why when you get personal loans despite having a poor cibil score, meet all emergency expenses with received money and repay all EMIs at the right time. A good credit score always helps you get attractive loan products with reasonable terms and conditions from traditional banking institutions and lead a comfortable life. There are other benefits of a good CIBIL score as well. People start considering you a financially responsible person and will never hesitate to offer monetary help during emergencies.

With the rapid development of the internet and banking technologies, loan repayment has become relatively straightforward. If you are a busy person and can’t visit the bank time and again to repay the money every month, ask the banker to activate an automated repayment system on the Bank account you get salary credits and maintain sufficient cash reserves. The loan EMI will automatically get deducted with interest charges from your bank account every month.

If the payment doesn’t take place due to any technical reason, consult your banker as soon as possible and make alternative arrangements for loan repayment. This gesture and activeness let bankers feel that you are financially responsible and have the intention to pay back the loan money in full. If income and cash reserves allow you, consider paying the loan before its maturity period. It is a sign of your stable and smooth financial condition and helps develop a good image in bankers’ eyes.

What Should You Not Do When Applying For A Personal Loan With A Bad Credit Score?

You shouldn’t perform specific actions while applying for personal loans with a poor cibil score. Those actions are-

  • Hiding your previous transaction Report,
  • Hiding information about your existing loans and EMIs
  • Using fake documents for loan application and acquisition,
  • Submitting too many applications for personal loans without CIBIl verification at the same time. It’s always better to deal with one financial organization at one time. You would submit your application successfully and complete various formalities in quick succession. Sending applications to different banks can mess-up the situation and will result in nothing and
  • You are not disclosing enough sources of income.


When people have bad credit scores, they look for new ways to apply for a personal loan and get the much-needed money without irritating delays. Of course, having a bad credit score is always wrong, but it doesn’t mean you have no right to a respectful financial life. To get an online personal loan despite being tagged with a poor cibil score, follow the tips mentioned above. Then, use the received money to meet all essential and unavoidable financial applications and repair credit score again by repaying all loan EMIs throughout the repayment tenure. Prepayment of personal loans would work wonders for you. It helps to get rid of the loan commitment before the official ending of payment tenure and strengthens your credit score quickly.