5 Ways to Get Personal Loan Even with Bad CIBIL Score

Personal loans are easy to avail when you meet all related eligibility criteria. One of the most important factors when considering creditworthiness is your CIBIL score, which is your credit rating. Generally, poor credit scores disqualify you from availing loans. However, there are certain tricks that makes personal loans for bad credit possible.

If you need a personal loan with bad CIBIL score, you can try these workarounds to get the financial help.

Take the loan jointly

When it comes to personal loans for bad credit, the best alternative is to opt for the loan together with another friend or family member. Ensure that the other member’s CIBIL score is at least 750. In this manner, you can bypass your poor credit rating and receive the loan amount from the lender.

Check for errors on CIBIL rating

In some cases, the CIBIL score may fail to show your actual creditworthiness. This generally happens due to a mistake during the CIBIL score calculation. Ensure such faulty scores do not hamper your chances of availing a personal loan. Double-check all the details you provide on CIBIL, such as the PAN number and credit history information.

Enquire about associations between lender and employer

Salaried employees working for reputed companies or organization can check whether their employer has a tie-up with the NBFC in question. You can exploit this connection to avail a low CIBIL personal loan. Financing companies often prefer lending money to employees of such esteemed companies.

Look for other lenders

The eligible credit score for availing a personal loan varies between different lenders. Some NBFCs may offer such loans on lower credit scores as well. Therefore, you should look at all available options. 



You may find a lender whose eligibility criteria you can match. Personal loan eligibility calculators will help you determine whether you can avail a loan or not.

Reinforce your application with a collateral

In general, personal loans are unsecured financial products. You cannot pledge an asset against the money you borrow. However, some financing companies may allow you to do so if you are looking for personal loans for bad credit. Check whether your lender has such provisions in place.

However, improving your credit score is the best way to ensure a fast and hassle-free personal loan approval.

Methods to improve CIBIL rating

• While using credit cards, keep in mind that you should spend only as much as you can repay within the billing date for the card. Unpaid credit card bills hamper your credit rating.
• If you are already repaying a loan, ensure you make EMI payments on time every month. Late payments or defaults will adversely affect your CIBIL score.
• In some cases, the credit score on your CIBIL account does not reflect your credit rating but that of someone else’s. This may happen due to an error on your part while entering your details or due to other reasons. Rectify these mistakes as soon as you notice them to improve your credit rating.
• Rather than looking for a personal loan for bad credit, you can try to improve your CIBIL score by increasing the credit limit on your credit card. High credit limit results in a better first impression about you on lenders.

NBFCs provides pre-approved offers, which makes the loan availing process simpler and faster. These offers are available across both secured loans, such as home loans, and unsecured loans, namely, business loans and personal loans.

So, do not stop looking for a personal loan for bad credit. You will either find a way to avail such a loan with poor CIBIL score or improve your credit rating in the process.