Personal loans are one of the quickest ways to arrange money during a financial emergency—be it a medical need, wedding, or sudden home repairs. For salaried people, getting a personal loan is usually easier because they have a fixed monthly income. But what if your CIBIL score is low? Many people think that a low credit score closes all doors to borrowing. This is not true. Even with a low score, you can still get a personal loan—if you plan wisely.
Let’s understand how salaried individuals with low CIBIL scores can still secure a personal loan with proper strategy and preparation.
What Exactly Is a CIBIL Score and Why Does It Matter?
A CIBIL score is a 3-digit number ranging between 300 and 900. It reflects your credit history and repayment behavior. A high score (above 700) increases the chances of loan approval, while a low score (below 600) signals high risk to banks or NBFCs.
Lenders use this score to decide:
- Whether to give you a loan
- How much loan to give
- What interest rate to charge
Even though CIBIL plays a major role, it’s not the only factor. Your income, job profile, and repayment capacity also matter.
Can You Get a Loan with a Low CIBIL Score? Yes, You Can!
Getting a personal loan with a poor credit score may be tough, but it’s not impossible. Lenders today are more flexible than before. Many NBFCs and private lenders offer loans even to people with low credit scores, although the interest rate may be slightly higher.
If you’re a salaried employee working with a government department, PSU, or reputed private firm, you already have one big advantage—stable income. This reduces the risk for lenders.
Important Factors Lenders Check Apart from CIBIL Score
If your CIBIL score is low, banks and NBFCs still look at these aspects before approving your loan:
- Monthly salary: A stable and decent salary assures lenders that you can repay EMIs.
- Job type: Permanent employees in government jobs or well-known companies have better chances.
- Work experience: Longer job tenure builds trust with lenders.
- Existing loans: Too many loans or high EMIs can affect approval.
- Repayment history: Missed EMIs or delayed payments create a negative impression.
Smart Ways to Get a Personal Loan Despite Low Credit Score
Here are some practical tips that can help you get a personal loan even if your credit score is not up to the mark:
1. Apply for a Lower Loan Amount First
If your score is low, don’t apply for a high loan amount. Instead, apply for a small loan like ₹50,000 or ₹1 lakh. Lenders are more willing to take a risk with small amounts. After successfully repaying it, you can apply for a bigger loan.
2. Offer a Collateral or Security
Usually, personal loans are unsecured, meaning you don’t need to provide any asset. But if your score is low, offering collateral can help. You can pledge:
- Fixed deposits
- Gold
- Property papers
- Insurance policies
When the risk is lower for the lender, they are more open to giving you a loan—even at a better rate.
3. Apply with a Co-Applicant or Guarantor
If you have a friend, sibling, or spouse with a good credit score and stable income, ask them to become your co-applicant or guarantor. Their strong credit profile increases your chances. A joint loan makes the lender more confident about repayment.
4. Show Strong Income Proof
Show your bank statements, income tax returns (ITRs), and salary slips to prove that you earn regularly and can repay the loan. Even with a low score, solid income proof helps build your case.
5. Correct Errors in Your Credit Report
Sometimes, the reason for a low CIBIL score is not your fault. There might be a mistake in your credit report—like an unpaid loan marked wrongly.
You can check your credit report online for free through several platforms like CIBIL, Moneycontrol, or third-party financial apps. If you find any error, raise a dispute and get it corrected. This can improve your score and boost your loan approval chances.
Where to Apply for a Loan if Your Score is Low?
Some financial platforms and NBFCs specialize in providing loans to people with low credit scores. Many fintech companies offer 100% digital personal loan services that are easy and quick. For example:
- Moneycontrol Loan Service: Offers personal loans up to ₹50 lakh. You can apply online and complete your KYC digitally. Interest rates start from 10.5% p.a., and there are no hidden charges.
Such platforms usually work with multiple lenders and can match you with the best offer based on your salary and risk profile.
Digital Process Makes It Easy for Salaried Borrowers
Today, applying for a loan is no longer a lengthy or paper-heavy process. With digital platforms, salaried employees can apply from the comfort of their homes:
Steps to apply for a digital personal loan:
- Visit the lender’s website or app
- Fill in your basic details—name, PAN, income, job info
- Upload your KYC documents
- Choose loan amount and EMI plan
- Submit the application
If everything is okay, the amount will be credited to your bank account in just a few hours or within a day.
Benefits of Getting a Loan with a Low Score – If Done Right
- Helps you meet urgent financial needs
- Improves your credit score when you repay on time
- Builds your financial credibility for future borrowing
- Opens up better offers later when your score improves
But remember, don’t overborrow. Borrow only what you need and can repay without stress. Missed EMIs can damage your credit further.
Long-Term Tips to Improve CIBIL Score
If you’re thinking about your future finances, work on improving your score step-by-step:
- Always pay credit card bills and EMIs on time
- Don’t use too much of your credit card limit
- Avoid applying for too many loans at once
- Keep a mix of secured and unsecured loans
- Check your report every few months for errors
Building a good credit history takes time, but once your score crosses 700, you’ll get faster loan approvals with lower interest rates.
Final Words
Even with a low CIBIL score, salaried people have good chances of getting a personal loan if they apply smartly. By offering collateral, applying jointly, or choosing smaller loan amounts, you can improve your chances. Stay consistent with repayments and use this opportunity to build your credit for a stronger financial future.
