How to Secure a Personal Loan with a Low CIBIL Score (Below 700)
- Sandipon Mistry
- Oct 13
- 3 min read
Getting a personal loan when your CIBIL score is below 700 can feel difficult — but it’s not impossible. While most banks and NBFCs prefer a score above 750, there are smart ways to improve your eligibility and still get the funds you need.In this post, we’ll explain what your CIBIL score means, how you can qualify for a personal loan with a low CIBIL score, and what steps you can take to rebuild your credit for the future.
Why Your CIBIL Score Matters
Your CIBIL score is a three-digit number that shows how responsibly you’ve managed credit in the past.A low score (under 700) signals to lenders that you may have missed payments, used too much of your credit limit, or managed loans poorly.This makes lenders cautious — but remember, your score is not the only thing they look at.
How to Get a Personal Loan with a 670 CIBIL Score
If your score is around 670, you’ll need to be strategic when applying. Here’s how to improve your chances of approval:
1. Approach NBFCs and FinTech Lenders
Many NBFCs and FinTech lenders are more flexible than traditional banks.They often consider factors like your income stability, bank statements, and cash flow — not just your credit score.If you have a steady salary or business income, highlight that in your application.
2. Go for a Secured Loan
If possible, choose a secured loan, such as a gold loan or loan against property.Because these loans are backed by collateral, lenders are more confident and willing to approve applications with a low CIBIL score.
3. Apply with a Co-Applicant
Having a co-applicant or guarantor with a good credit score and stable income can make a big difference.It reassures lenders that someone reliable will cover the payments if needed — helping you get better loan terms.
4. Highlight Your Financial Stability
Provide full proof of your financial stability — salary slips, IT returns, or business statements.If your income has grown or your spending habits have improved recently, make sure lenders see that progress.
Boosting Your Loan Eligibility (Even with a Low Score)
Your CIBIL score is important, but it’s not everything. Here’s how you can make your application stronger:
Lower your debt-to-income ratio: Pay off smaller loans or credit card dues first.
Avoid multiple loan applications: Each rejection or inquiry can slightly lower your score. Apply selectively.
Maintain timely repayments: Even a few months of on-time payments can show positive behavior to lenders.
Be Ready for Higher Interest Rates
When your CIBIL score is low, lenders see you as higher risk — which means you might get a personal loan at a higher interest rate.Compare offers from multiple lenders before deciding. Sometimes, a slightly higher rate is worth it if it helps you meet an urgent financial need.
Rebuilding Your CIBIL Score for the Long Term
Getting a loan with a low score is possible, but improving your credit is the real goal.Here’s how to do it:
Pay EMIs and credit card bills on time, every time.
Keep your credit utilization below 30% of your limit.
Avoid unnecessary loans or credit cards.
Review your credit report regularly for errors and get them corrected.
Over time, these habits can lift your score above 750 — unlocking better loan and credit card offers with lower interest rates.
Final Thoughts
A low CIBIL score doesn’t have to hold you back. With the right approach — choosing flexible lenders, securing your loan with collateral, and showing financial stability — you can still qualify for a personal loan with a low CIBIL score.
And if you keep building good credit habits, your financial opportunities will only grow stronger.
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