Getting a personal loan with a 610 credit score? What are your options

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If your credit score is around 610, you have a "subprime" or "fair" rating with most credit score agencies. It's not terrible, but it's not fantastic either—and that middle ground can be difficult to navigate when you're borrowing money. Lenders use your credit score as one of the primary considerations in approving a personal loan, how much to lend you, and at what rate of interest.

How a 610 credit score will affect lenders

A credit score of 610 signals that you’ve likely had some credit challenges in the past—late payments, high credit utilization, or perhaps defaults. Most banks in India prefer scores above 750 for unsecured personal loans, as it reflects better creditworthiness. With a 610 score, traditional banks may either deny your application or approve it with stricter conditions such as higher interest rates, smaller loan amounts, or the need for a guarantor.

Where you can still become eligible

While big private banks and government sector banks will step back, some non-banking finance companies (NBFCs), small finance banks, and online lending sites lend money to subprime borrowers. They don't give much importance to the score—they look at your income, job stability, existing EMIs, and banking history. With stable income, good debt-to-income ratio, or co-applicant, one is very likely to have a loan sanctioned.

Be ready to pay top interest and charges

Even if approved for a loan, at a score of 610, be ready to pay more. Interest will cost between 14% and as high as 28%, depending on the lender and the size of the loan. Processing fees, prepayment penalties, or having to buy add-on insurance can also be conditions. Carefully read the loan terms prior to borrowing it, and compare shop it with what else is being offered by other lenders.

How to increase your approval chances

If you are not time-strapped to take the loan, first try to enhance your credit score. Settle credit card bills, pay EMI promptly, and do not take other loans. It will result in better loan offers with a 30–40-point increment in your credit score. If you genuinely need money urgently, you can try taking a secured loan—against fixed deposit, gold, or mutual funds—where your credit score will be less significant.

You have choices, use discretion

You can borrow with a 610 credit score but it will be expensive. If you are confident that you will be able to repay in time, the loan even has provisions to allow you to build up your credit history again. But borrowing more than you can repay—or at obscenely high interest rates—will land you in trouble. Be cautious and borrow only to repair something, not construct something.