A personal loan is an unsecured type of loan that may be an answer to many of your financial problems. You can get a personal loan from a bank, an NBFC through online application portal, or by visiting the lender and applying in person.

Eligibility Criteria for a Personal loan

The lender needs you to fulfil some eligibility criteria before sanctioning the loan to you. The lender wants you to be:

  • 21 or more in age
  • An Indian national
  • Salaried or self-employed with an income proof
  • A good CIBIL score holder

Out of all these criteria, your CIBIL record is considered most important to check your eligibility for a personal loan.


CIBIL stands for Credit Information Bureau Limited. It is the most reputed and authentic credit bureaus of India. The lenders provide information of all the borrowers and their repayment history to CIBIL. In turn, it assigns each borrower a three-digit number from 300 to 900. The numbers are the CIBIL scores of the individual. Any CIBIL score above 750 is a good score for availing a personal loan.

Availing a personal loan with a low CIBIL score

A good CIBIL score is a prerequisite for a personal loan. Poor CIBIL score can dampen your prospects of getting this loan. But, there are specific ways to solve this problem. Here are these options for you to consider if you want to get a personal loan for Low CIBIL score:

• Pledge a security

A poor CIBIL score makes the lender believe that you might not be able to repay the loan amount on time. Hence, your loan application does not get approved. But if you pledge collateral to the lender for the loan, your chances of getting one increases.

• Check for a corporate relationship between the lender and your employer:

Many corporate houses have good business tie-ups with some lenders. If you happen to be working for one such firm, you may get exclusive benefits or relaxations from the lender and may get a personal loan despite a poor credit score.

• Get a joint-applicant:

If your family member or friend has a good credit score, you can make him a co-applicant for the loan. His excellent credit score will help you to prove your credibility and the lender will quickly sanction the loan.

• Try to get a guarantor:

A guarantor is someone who has a healthy credit score and can vouch for you. He is a one who would give guarantee to the lender for the timely repayment of the loan amount on your behalf. The lender will hold him responsible for the compensation in case you fail to pay your loan EMI on time.

• Try to increase your income source:

A hike in your salary or increase in your income will favour your loan application. It will convince the lender of your ability to repay the loan EMI despite the lower CIBIL score. A steady source of income or a secured job can compensate for a poor credit score, thereby increasing your credibility.

• Go for a lesser loan amount:

If your lender thinks you to be a high-risk candidate, you can improve your candidature by asking for a lower loan amount. It poses less risk to the lender, and your loan application will get a push in the right direction.

Although a good credit score is significant to avail a personal loan, you can still get one despite this. You have to consider these points, take the necessary measures, and follow them correctly.

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