Getting a loan with a bad CIBIL score may seem impossible, but it’s not. Many people think that a low credit score means the end of the road when it comes to borrowing money. But that’s not true. There are several smart ways to get a loan even if your credit score is not great. So, if your CIBIL score is low and you’re feeling stuck, don’t worry. This guide will help you understand how to still get the money you need.
What is CIBIL Score and Why It Matters
Before we dive into the solutions, let’s understand what a CIBIL score is. CIBIL score is a number that ranges between 300 and 900. It tells banks and lenders how trustworthy you are when it comes to repaying loans. A high score, like 750 or above, means you are a low-risk borrower. That makes it easy for you to get a loan or credit card. But if your score is below 650, banks may hesitate to lend you money.
A low CIBIL score could be due to many reasons. Maybe you missed some EMIs, or your credit card payments were delayed. Whatever the reason, it’s important to know that your current score doesn’t have to stop you from getting a loan.
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How You Can Still Get a Loan with a Low Credit Score
Yes, it’s possible. There are a few trusted ways to get a loan even if your score is not up to the mark. These methods may not be known to everyone, but they work if you plan properly.
Apply for a Joint Loan with a Trusted Person
One of the most effective ways to get a loan with a poor CIBIL score is by applying jointly with someone who has a good score. This could be your spouse, parent, or even a friend. If their credit score is strong and they have a steady income, banks will be more confident in approving the loan. Since you’re sharing the responsibility, your chances improve a lot. It also reduces the burden of repayment because two people are involved.
Approach Small NBFCs for Help
If traditional banks say no, don’t give up. Non-Banking Financial Companies, or NBFCs, often have more relaxed rules. Many of them offer loans even to people with bad credit scores. They may charge a bit more interest, but they also process loans faster. If you need money urgently, this option can be very helpful. But always read the terms and conditions carefully. Make sure you understand the interest rate and repayment schedule before signing anything.
Choose Secured Loans Instead of Unsecured Ones
This is one of the best ways to get a loan even with a low score. In a secured loan, you give something valuable as security to the lender. For example, you can pledge your gold, property, fixed deposit, or even insurance policy. Since the lender has your asset as backup, they feel safer. That’s why banks are more willing to approve such loans. This method is very useful if you own something valuable and are confident about repayment.
Go for a Smaller Loan Amount First
If your credit score is not great, asking for a big loan may not be a good idea. Instead, try applying for a smaller loan first. Lenders are more likely to approve small amounts because the risk is low. Once you repay the small loan on time, your credit score will start to improve. Later, you can apply for bigger loans on better terms.
Show Proof of Regular Income
Another trick is to show that you have a stable source of income. Whether you are salaried or self-employed, a steady income gives the lender confidence. If you can show that you get paid on time every month and that your expenses are under control, you stand a better chance. Even if your score is low, banks may consider your application based on your income proof and job stability.
Focus on Building Your Credit Score Slowly
While all the above methods help you get a loan quickly, don’t forget to work on your credit score too. Pay your current EMIs and bills on time. Avoid applying for too many loans at once. Keep your credit card usage under control. Over time, your CIBIL score will start improving. With a better score, you will not only get loans more easily but also enjoy lower interest rates.
Final Thoughts: Hope is Not Lost
A low CIBIL score is not the end of your financial journey. Many people face this situation, and many bounce back stronger. You just need to be smart about your options. Whether it’s a joint loan, secured loan, or approaching NBFCs, there are ways to manage your needs. Also, improving your credit score should always be a goal. With time, discipline, and smart decisions, you can build a strong financial future. So don’t lose hope. Even if your credit score is messed up today, there is still a way forward.
