How to Get a Personal Loan for Low CIBIL Score Online

3 MinsJuly 1, 2021

Grace Fernandes wants to avail of a personal loan. But she is worried her application may get rejected. The reason-a drop in her credit score due to two credit card payment defaults a year ago. What should Grace do now? Let us see how she can still apply for and get a personal loan.

personal loan for low cibil score

What is the impact of credit score on a personal loan?

The first thing that a lender checks when you apply for any form of debt, including a personal loan, is your credit score. Your credit score is a summary of your credit history, all the debt you have availed, your entire repayment history and your ability to repay. For example, a credit score of over 600 is generally required to qualify for a personal loan.

Can you get a loan if your credit score is below 600?

It is possible to get a personal loan for lower credit score, but you will have to go the extra mile to prove to the bank that you can pay it off.

  • Show income proof:

     Lenders want to know that you have regular income coming in every month. Steady income increases the chance of your personal loan getting approved. Although Grace was without a job for six months last year, now she has a steady income for over six months. This works in her favour.
  • File IT returns:

     If you have filed your taxes for the last three years, lenders will look at it positively. Even if your income falls in a particular financial year, like it happened with Grace, make sure you continue to file your IT returns as it will serve as proof for future loan applications.
    [Also Read: What should be my credit score to avail loans?]

  • Provide employment proof:

     Grace should get a letter from her employer that shows her employment history. If lenders see that Grace has been gainfully employed for an extended period, they are more likely to approve her loan.
  • Have a decent bank balance:

     Grace can’t have a bank balance that is close to zero. This won’t inspire confidence in the lenders. Lenders need to see that she is not living beyond her means and doesn’t have an extravagant lifestyle.


Axis Bank offers a range of Personal Loans tailored to meet the needs of most borrowers. Calculate on our Personal Loan EMI Calculator to know more.

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