Multiple banks. Different interest rates. Call it a "conflict of interest".
  • Loading your search...
    Close

    Compare, check your eligibility and apply online instantly.

  • Personal Loan for Low Cibil Score is Rated as "Great!" by 93411 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service

    Responsiveness

    Personal Loan BYTES FROM OUR KITCHEN
    rated 4.0/5.0 by 93411 users

    Personal Loan for Low Cibil Score

    Personal Loan for Low CIBIL Score

    When you apply for a loan, the lender, lets say the bank, will need to know that you are worthy of receiving that loan. This worthiness has nothing to do with a charming personality, what it actually means is that banks need to know how good you are with your finances which tells them if you will repay the loan in a timely fashion and without missing payments.

    The way bank and other financial institutions can know your credit worthiness is through your CIBIL (Credit Information Bureau Limited) score. It a number that is associated with you and tells the bank how responsible you are with your loans and credit cards. The CIBIL score is one of the prime parameters used to determine the approval of a loan. The CIBIL score was Indias first ever credit rating system and is recognised by all the banks as an authority on an individuals credit rating.

    Perfect Personal Loan Deals for you

    How does CIBIL Score work?

    How the CIBIL score system works is similar to the credit score systems found in many countries. You are assigned a score, a number, between 300 and 900. The number that you get is a result of the information that the banks forward to CBIL. This information is a collection of your repayments of Personal Loans, home loans, vehicle loans and credit cards. If all your payments are made on time then you can hope to have a good score.

    If you skip payments or fail to pay the credit back in time, it could lower your credit rating which would, over time, would make it difficult for you to get approved for a loan. CIBIL is also going to include utility bill payments which means that your score could improve or deteriorate depending on when you pay your phone, electricity or water bills.

    Apply for Personal Loan

    What factors lower CIBIL Score?

    Since CBIL scores are supposed to be an indicator of your financial habits, the score changes based on how you handle your loans and credit cards. These are some of the factors that can have a negative effect on your CIBIL score.

    • Personal loans

      Since personal loans are unsecured loans, taking too many personal loans can cause your credit score to fall.

    • Missing loan instalments

      If you miss an instalment on your loan then it may be viewed as poor financial planning which means that your credit rating will suffer making it difficult for you to secure loans in the future.

    • Coming too close to the limit on credit cards

      If you are too close to the limit of your credit cards too often, it too points at constant debt and an inability to manage money wisely leading to a reduction of your CIBIL score.

    • Not paying credit cards back on time

      Just like the EMI for your loans, if you fail to pay your credit card dues on time, they too can have a negative effect on your credit history.

    • Not paying credit cards in full

      You might think that paying just the minimum due on the card or slightly more than that is enough to keep things under control but it's not. While the banks may not be overly concerned that you have an outstanding balance, CBIL on the other hand takes it as a negative sign. For CIBIL, outstanding balance are not a good thing and tend to lower your scores.

    • Not having any credit at all

      It may sound like a good place to be in if you don't have any loans or credit cards at all when in fact it is not. This is so because not having a credit history means that your credit score is 0 by default which means that if you were to apply for a loan or a credit card, the chances of it getting reject are higher.

    • Too many rejected applications for loans/credit cards

      If you apply for a loan or a credit card and your application is rejected, you tend to apply with another bank, and another and so on. Such practices reduce your score for two reasons. The first is that CIBIL takes constant rejects to be a bad sign and secondly because every time a bank requests CIBIL for your credit information, your credit scores come down.

    • Settling credit cards

      If you have settled credit cards, that is, if you have negotiated with the bank and closed a credit card after paying an amount lesser than what was due on the card, then your credit history will receive a red flag that could cause trouble later.

    How CIBIL scores affect eligibility for loans

    While banks may not tell you what CIBIL score makes you a perfect candidate for a personal loan, they do say that your credit score will play a part in the approval of your application for a loan. If your score is below a certain number then chances are that you may not be approved for a loan.

    Even if you are approved, the interest rates offered to you may be higher than those offered to someone with a good score. While most banks in India may be vary of providing loans if credit scores are low, there are private finance companies that may offer personal loans for low CIBIL scores.

    What is a personal loan?

    A personal loan is a loan that you can take to cover any emergent expenses like unexpected bills or paying for things like an expensive vacation. The idea of the personal loan is to ensure that you have the funds you need in case of an emergency. The defining features of this loan are that it is unsecured and can be used for anything. Unlike vehicle and home loans, there is no restriction on what you do with the money you get.

    Features of personal loans

    There are lots of features that serve to make personal loans very attractive to people looking for quick and easy financing options.

    • Personal loans can be taken up to the tune of Rs. 30 lakhs and paid back over a period of 6 months to 5 years.
    • They require minimal documentation as compared to home loans or vehicle loans.
    • They also come with no restrictions on how you use the money from the loans.
    • A personal loan can be applied for, approved and dispersed in as little as 24 hours depending on the bank or NBFC (Non-Banking Financial Company) you approach.
    • They can be paid back via post-dated cheques, ECS or auto debit facilities provided by banks.
    • They also don't need for you to have any collateral to secure the loan.
    • You can go in for a prepayment and pay the loan back before its tenure is over however, prepayments may attract a fee.
    Interest rates for personal loans

    Unlike other loans, personal loans tend to be a bit more expensive since the interest rates charged on such loans are higher. Just like with any other loan, the specific interest rates for these loans will differ from one bank to another. The general range of the interest rate can be from 15% per annum to as high as 20% per annum depending on the bank.

    Eligibility criteria for personal loans

    Since these loans are only available to individuals they come with certain eligibility criteria which are:

    • You must be between the ages of 21 years and 60 years in order to apply for these loans. In the case of some banks the minimum and maximum ages might differ based on the bank's own rules.
    • You will also need to have a minimum specified net monthly income. This too changes from bank to bank and may also be affected by the city that you live in.
    • Some banks also have rules regarding the EMI which state that the ratio of your net monthly income and the EMI should not be greater than 50.
    • The loan is also available only to salaried or self-employed people.
    • With some banks you may be asked to provide a guarantor for the loan.
    Documents required

    Since personal loans are meant to be easy to acquire, the documentation for them is quite simple and includes the following documents.

    • Identity proof in the form of an aadhar card, driver's license, passports, etc.
    • You may also need to provide an address proof like a driver's licence, electricity or telephone bills. In the case of a driver's license which has your current address mentioned on it, you may be able submit that as both ID and address proof.
    • You might also have to submit your payslips as proof of income.

    How to improve your CIBIL score

    If you happen to have a CIBIL score that is not good then there is no reason to lose heart. There are things you can do to improve that score. Here are some tips that can help you improve your credit rating.

    • If you have credit cards with outstanding balances then you need to pay them back at the earliest possible because even if you pay the minimum due, it only gets the bank off you back, the remaining is still considered outstanding by CIBIL.
    • If your credit score is not good then try to keep the borrowing down to a minimum. Doing this will give you time to recover from your current debt without creating new debt.
    • Let's assume that you have cleared all your debt and decide that to celebrate your freedom from debt you will cancel all your credit cards, DON'T! If you cancel all your cards then you won't be able to create a credit history when you need one at a later stage.
    • If you don't have cards or loans that can help you create a credit history to get your score going, you can always go in for a Secured Loan like a vehicle loan. Sure you may not get the best interest rate on such a loan but at least you may get a loan that can help you jump start your credit history.
    • There are times when you move into a house and realise that because of the misdeeds of the person who stayed there before you, the address has been blacklisted. What you can do in this case is to inform CIBIL of the mistake and get it corrected.
    • As far as using your credit cards are concerned, make sure you don't come close to the limits of your cards too often. If you do then your score might deteriorate further.
    • In case you can't get a loan or a credit card to get the history going what you can do is to approach banks that provide credit cards against fixed deposits. The idea is that you open an FD with them and they will issue you a credit card that has a limit slightly lesser than your FD amount. This will get you into the credit system and get your credit history going.
    • In time, even utility bill payments are going to affect your CIBIL score so it's best to make a habit of making sure that ALL your bills are paid in full and on time.
    • If you are rejected for a loan or credit card once, don't keep applying for one at other banks. Take some time out to fix your score and then apply again.

    It may not be easy but it is possible to get a loan even if you have a poor credit history. All you have to do is to shop around a bit and talk to multiple banks about the possibility of extending you a personal loan with your CIBIL score. Just make sure that if you do get the loan, you pay it back on time and without any hassles so that your credit score doesn't take too many hits.

    Personal Loan for Low Cibil Score Reviews

    • RBL Bank Personal Loan
      "excellent"
      0.5 5.0/5 "Blown Away!"
      My personal loan experience is very good with RBL bank and even they have provided sufficient loan amount to me . Rate of interest is 18% which is up to the mark and tenure period is 3 years . Customer service is good and documents were collected on time . I use to pay EMI 1044 and processing fee is 3500 . There is no preclosere option .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Aug 19, 2018
    • ICICI Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken personal loan with ICICI BANK . I use to pay EMI 9000 and tenure period is 3years . I am happy with customer services because i can connect them easily . There is no charge for processing fee, rate of interest is 14.2% and it is too high in the market . My loan amount is up to the mark .
      Was this review helpful? 0
      , chennai
      Reviewed on Aug 19, 2018
    • HSBC Bank Personal Loan
      "AVERAGE CARD"
      0.5 3.0/5 "Satisfactory"
      Documentation from the bank end was late after that only i got the card, they can also improve the customer service in terms on responsiveness, because responsiveness is little delayed from them, almost the processing time was around 2 weeks they have taken which is little longer period.
      Was this review helpful? 0
      , chennai
      Reviewed on Aug 18, 2018
    • HDFC Bank Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      My personal loan was taken with HDFC Bank 11 months back.The loan amount was 3 lakhs and the interest rate was satisfactory . The EMI period was 5 years . The customer service was really good and there was no delay at all in the process . They have provided door step service for collecting documents.
      Was this review helpful? 0
      , jaipur
      Reviewed on Aug 18, 2018
    • Fullerton Personal Loan
      "Overall good"
      0.5 5.0/5 "Blown Away!"
      I have taken my personal loan with Fullerton and the experience is fine. The customer services and response is good and there are no hassles to get the loan. They done a good job. Though the interest rate and charges is on the higher side, I am pretty happy with the service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 18, 2018
    • Kotak Personal Loan
      "More than satisfactory"
      0.5 5.0/5 "Blown Away!"
      Kotak Mahindra Bank has been really beneficial and they provided me with a personal loan. The rate of interest and processing charges is normal and I had no issues to get the loan through. The customer services and response is good and overall no issues.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Aug 18, 2018
    • ICICI Bank Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have taken my personal loan with ICICI bank 8 months back. The loan amount was 98,000a nd the interest rate was satisfactory . The tenure period was 24 months . The customer service was very good and there was no delay at all. The loan was approved on time infact they follow paperless approval process.
      Was this review helpful? 0
      , chennai
      Reviewed on Aug 18, 2018
    • Bank Bazaar Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar provides best services when compared to others in the market. I am using the services of bankbazaar from more than 1 year. The website of bankbazaar is easy to use and is user friendly. Customer service was good and they followed up on time.
      Was this review helpful? 3
      , bangalore
      Reviewed on Aug 17, 2018
    • HDFC Bank Personal Loan
      "Good service"
      0.5 4.5/5 "Excellent!"
      It was a good experience with HDFC bank for personal loan, the loan amount was for Rs 4 lakhs with nominal interest rate in the market. The process was smooth and it took 10 days to receive the loan amount. Customer service was good and they followed up on time. The tenure period for this loan is 2 years.
      Was this review helpful? 3
      , bangalore
      Reviewed on Aug 17, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I know bankbazaar.com from last 2 years but i have used bankbazaar for the first time. The services provided by bankbazaar is good when compared to others. Customer service was good with bankbazaar and their response was on time. The website of bankbazaar is easy to use and is user friendly.
      Was this review helpful? 2
      , mumbai
      Reviewed on Aug 17, 2018
    • Standard Chartered Bank Personal Loan
      "Good service"
      0.5 3.5/5 "Pretty good"
      It was an average experience with Standard Chartered Bank for personal loan, the process was quite long and it took 20-25 days to complete. Documents were collected on time and the customer service was good. The loan amount was for Rs 6 lakhs for 5 years with high interest rate.
      Was this review helpful? 2
      , mumbai
      Reviewed on Aug 17, 2018
    • Bank Bazaar Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar provides best services when compared to others in the market. I am using the services of bankbazaar from last 1 year. Customer service was very good and they responded on time. The website of bankbazaar is easy to use and is user friendly.
      Was this review helpful? 2
      , chennai
      Reviewed on Aug 17, 2018
    • Tata capital Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have my personal loan application approved with TATA CAPITAL and the experience was good, the loan amount was for Rs 2 lakhs with the tenure period of 3 years and the rate of interest is nominal when compared to other banks. Customer service was good and they responded on time.
      Was this review helpful? 4
      , chennai
      Reviewed on Aug 17, 2018
    • Bank Bazaar Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I know bankbazaar.com from last 3-4years, the services provided by bankbazaar is good when compared to others. Customer service was good with bankbazaar and they responded on time. Mobile application of bankbazaar is easy to access and is user friendly.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Aug 17, 2018
    • HDFC Bank Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have my personal loan application approved with HDFC bank and the experience was good, the loan amount was for Rs 3 lakhs with the tenure period of 4 years and the rate of interest is nominal when compared to other banks. Customer service was good and they responded on time.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Aug 17, 2018
    • Bank Bazaar Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I am using the services of paytm from last 1 year, the services provided by bankbazaar is good when compared to others. Customer service was good with bankbazaar and their response was on time. I check my credit score on the website of bankbazaar.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Aug 17, 2018
    • ICICI Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      My experience was very good with ICICI bank for personal loan,, the process took more than 15 days to complete. The loan amount was for Rs 1 lac with nominal interest rate. Customer service was good and they followed up on time. The tenure period for this loan is 3 years.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Aug 17, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 3.5/5 "Pretty good"
      It was a good experience with bankbazaar so far, they provide good services when compared to others in the market. Customer service was good with bankbazaar and they responded on time. The website of bankbazaar is easy to navigate and is user friendly.
      Was this review helpful? 1
      , kolkata
      Reviewed on Aug 17, 2018
    • Kotak Personal Loan
      "Good service"
      0.5 3.5/5 "Pretty good"
      It was a good experience with Kotak Mahindra bank for personal loan, the loan amount was for Rs 3 lakhs with nominal interest rate in the market. The process was quite long and it took 15 days to receive the loan amount. Customer service was good and they followed up on time.
      Was this review helpful? 2
      , kolkata
      Reviewed on Aug 17, 2018
    • Axis Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken a personal loan with AXIS bank and my loan experience was good, the loan amount was for Rs 4 lakhs with nominal interest rate when compared to other banks. The tenure period for this loan is 4 years and there are no preclosure charges.
      Was this review helpful? 2
      , bangalore
      Reviewed on Aug 17, 2018
    Common Loader Icon
  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.