Can I get a personal loan with a low CIBIL score (below 650)?
Accepted Answer ✓ Accepted
Yes, but with significant limitations and challenges. Options: (1) NBFCs - Bajaj Finance, Tata Capital, Muthoot Finance accept 650+ with conditions; (2) Digital lending apps - MoneyView, KreditBee, CASHe consider 600-650 scores; (3) Co-borrower/Guarantor - Add someone with good credit; (4) Secured personal loan - Offer FD, securities as collateral; (5) Small finance banks - More flexible than commercial banks. Expect: Interest rates 20-36% p.a., Lower loan amounts (₹50,000-3 lakhs max), Shorter tenure (1-3 years), Higher processing fees (3-5%), Extensive documentation, Possibility of rejection. Better alternative: Wait 3-6 months while improving score through timely credit card payments, clearing small debts, correcting CIBIL errors.
Suggested Answers
It's very difficult but possible through NBFCs and digital lending apps that specialize in low credit scores. However, you'll face very high interest rates (20-36%), smaller loan amounts, and stricter conditions. It's often better to improve your score first before applying.
Leave a Reply