Best Ways to Get a Loan with a Low CIBIL Score in India (2024 Guide)

Getting a loan with a low CIBIL score can be challenging, but it's not impossible. Many individuals struggle with credit score issues but still need financial support. This guide explores various ways to secure a loan despite a low credit score and improve your chances of approval.

1. Understanding the Impact of a Low CIBIL Score

• A credit score below 650 can make it harder to get loans approved.
• Lenders see low scores as risky, leading to higher interest rates.
• Some banks and NBFCs still offer loans but with stricter conditions.

2. Best Loan Options for Low CIBIL Score

• Secured Loans: Home loans, gold loans, and loans against fixed deposits.
• NBFC Loans: Many Non-Banking Financial Companies provide loans with flexible eligibility.
• Co-Applicant or Guarantor: Applying with a co-borrower can increase approval chances.
• Salary-Based Personal Loans: If you have a stable income, banks may still consider your application.

3. Steps to Improve Your CIBIL Score Quickly

• Pay existing EMIs and credit card bills on time.
• Reduce your credit utilization ratio.
• Check your CIBIL report for errors and get them corrected.
• Avoid applying for multiple loans at once.

4. Best Banks and NBFCs for Low Credit Score Loans (2024)

• HDFC Bank
• Bajaj Finserv
• Tata Capital
• SBI Personal Loans
• ICICI Bank

Conclusion

If you have a low credit score, don’t lose hope. By choosing the right lender and following strategic financial steps, you can still secure a loan. Contact Manishreni Consultants today for expert guidance on getting the best loan options with minimal hassle.