09 April, 2025 | 14:37 IST
A personal loan could be helpful in case of a financial crisis or unexpected incident. The lenders often prefer salaried borrowers due to the higher level of income security and thus repayment assurance. The salaried individuals from government organisations, public sector undertakings (PSUs) and multi-national companies probably get quicker approval for a personal loan compared to others. The banks and non-banking financial companies (NBFCs) often take into account the age, income, job profile, employer details and the credit score of a salaried applicant before approving a personal loan.
A low CIBIL score or credit score can make personal approval difficult. Your CIBIL score plays a huge role in the loan approval process and finalisation of the loan amount as well as the interest rate. But don’t lose hope just yet! Salaried employees with a low CIBIL score can still secure a personal loan.
Let’s take a look at some effective ways to secure a personal loan for salaried employees with low credit scores.
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A CIBIL score, provided by TransUnion CIBIL , is a 3-digit number ranging from 300 to 900. It reflects your creditworthiness. The score is based on your credit history and the way you have managed previous loans and credit facilities. A higher score indicates a good credit history, while a lower score suggests poor repayment behaviour.
For salaried employees, a score of 700 and above is often preferred by the lenders. But, if your score is below 600, it may raise concerns for lenders.
While a low CIBIL score (below 600) can make it difficult to get approved for a personal loan, it is not impossible. Many lenders provide options for borrowers with less-than-perfect credit. But they often charge higher interest rates and may set stricter repayment terms.
The good news is that if your score is low, you can still apply for a personal loan for salaried employees with the help of a few strategies.
You can also get a free credit score and a detailed credit report on the Moneycontrol app and website. It is important to monitor your credit score regularly to ensure it doesn’t drop further.
Here are a few tips to secure a personal loan with a low CIBIL score
ALSO READ: Emergency Loan: Here’s how to choose most suitable loan
You can easily apply for a personal loan online through the lender’s website or mobile app. Many financial institutions offer instant loan options, allowing you to complete the entire application process in just a few minutes.
Access 100% digital and instant personal loans through the Moneycontrol app, with no paperwork, low processing fees and instant disbursal to your bank account. It's quick and easy with just three steps — enter your details, complete KYC and set up EMI repayment.
In collaboration with eight lenders, Moneycontrol provides access to loans up to Rs 50 lakhs, with interest rates starting at 10.5% per annum.
In conclusion, getting a personal loan with a low CIBIL score is challenging, but not impossible. By following the strategies outlined above — such as offering collateral, applying for a joint loan or providing proof of income — you can improve your chances of securing the financial assistance you need.
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