10 June, 2025 | 14:19 IST
A personal loan can be a helpful solution when you need urgent funds but getting one isn’t always easy. Lenders don’t approve loans based only on your request, they evaluate key factors like income, employment status, and most importantly, your credit score.
Among these, your CIBIL score plays a crucial role. A low credit score signals a higher risk of default, making lenders more cautious and less likely to approve your application.
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CIBIL score or credit score is a number that reflects your creditworthiness. It is calculated based on your credit history, loan repayments, credit card usage and other financial transactions.
It ranges from 300 to 900. You can easily get a loan if your credit score is above 750. If your score is below 650, then it is difficult for you to get a loan approved.
Secure personal loans of up to Rs 50 lakhs effortlessly with Moneycontrol’s trusted network of eight leading lenders. The application process is fully online. Pick your EMI plan, enter your details, and finish a quick digital KYC. With interest rates beginning at only 10.5%, accessing funds is now simpler and more hassle-free than ever.
Yes, you can get a small personal loan even if you have a bad credit score. Many lending organisations, especially Non-Banking Financial Companies (NBFCs), fintech companies and private lenders offer personal loans with bad CIBIL scores.
It is often easier to get a loan if you are applying for a small loan between Rs 10,000 and Rs 1 lakh. You need to meet certain conditions if you are looking for a personal loan with a bad credit score. For this, the lending institutions may go through your source of income and check if you are eligible to pay back a loan.
A stable income gives a surety to lenders that they are at low risk of losing their credit money. But lenders may charge a higher interest rate compared to those with a higher CIBIL score.
Lenders may provide a personal loan even if you have a bad credit score, especially if the loan amount is small. Still, it is always better to improve your credit score first so that your application doesn't get rejected and your chances of approval increase. This can be done by paying off outstanding balances on your credit cards.
Ensure you pay your credit card bills in full every time and avoid making new purchases using your credit card until and unless you have cleared your previous bill in full. This will automatically increase your credit score.
Always provide documents such as salary slips, bank statements and employment letters to lenders to prove your repayment capacity. These documents can assure lenders that you are financially stable and capable of repaying the loan.
Try to explain the reason behind your poor credit score, like a medical emergency, a temporary job loss, or a business failure. Lenders may ignore this, considering it a temporary issue if you are currently stable.
Apply for a personal loan of up to Rs 50 lakhs through Moneycontrol’s seamless digital platform, in association with top lenders. Choose a repayment plan that suits you, submit your details, and complete the easy online KYC. Enjoy low interest rates starting at 10.5% with quick approval and disbursal.
While having a bad CIBIL score can make it harder to get a personal loan, you can still get one if you are applying for a small personal loan. Many NBFCs and fintech lenders in India offer personal loans even to borrowers with bad CIBIL scores, but it is usually at higher interest rates.
To improve your chances of approval, maintain a steady income, provide supporting documents, and be transparent about your financial history. Ensure you improve your credit score simultaneously so that you don't face any issues if applying for a bigger loan in the future.
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