Snneha Lukaa
April 22, 2020 0 Comment

A CIBIL Score is a three-digit numeric summary of your credit history. The score ranging from 300-900 is a representation of your credit worthiness. The score of 300 is the lowest, whereas, 900 is the highest. A high score reflects good credit behavior whereas, low score reflects bad behavior and is one of the factors that lenders check on when assessing your credit application. 

The score plays an important role to help lenders understand your repayment capacity. 

If you have a low CIBIL Score, do the following:

Having a low CIBIL Score does not necessarily mean that credit institutions in India would not offer you a loan. Use the below techniques to get a personal loan with a low CIBIL Score. 

Apply with spouse or relative as a co-borrower: If you don’t have a good credit score, then you can apply for the loan with your spouse or relative as a co-borrower. The credit score of the co-borrower combined with his income makes it possible for you to get the loan. 

High income: Having a high income works in your favour even if you have a low score. If you have received a raise in your salary or are likely to get a bonus in future or even if you have any additional source of income, then you can easily get a loan despite low CIBIL. 

Take help of a guarantor: Guarantor is an individual who would be responsible for paying off the loan on your behalf in case you default. It is essential to keep a person with good credit score as the guarantor as his strong backing can help you get a high loan amount.

Opt for a collateral loan: If you have a low CIBIL and factors like your age, income, employment status and others make it impossible for you to get a loan, then you can choose to pledge your assess as security to the lender. The assets that you can keep as collateral can be mutual funds, jewellery, fixed deposits, insurance policies and others. Getting a secured loan is easy in case of urgency as in case of default; the lender has the right to sell off the assets to cover the loan amount provided. 

Factors that affect your CIBIL Score

Too much of unsecured credit: Holding too much of unsecured credit i.e. credit card dues or personal loan debt can lead to decline in your credit score.

Paying loan installments on time: Your credit rating will suffer if you don’t make your EMI payments on time. 

Having high debt to income ratio: Utilizing more than 50% of your credit card limit will have a high impact on your score. 

Paying only minimum credit card dues: If you don’t pay off full credit card bills each month and only opt to pay the minimum dues then doing so can have a negative impact on your credit score. 

Settling credit card debt: If you have settled credit card debts i.e. closed a credit card by opting for a settlement with the bank, then your credit score is likely to get affected. 


Applying for personal loan with LOW CIBIL Score is easy if you apply with the right lender. You can apply for a personal loan with an NBFC like Credit Fair as we offer you personal loan upto Rs. 10 lakhs at ZERO COST EMIs and minimal documentation and processing fee. We offer quick loans to individuals with low credit score as well as no credit history.