Loans for Bad Credit Score in India
sDid you know 40% of loan applications get rejected in India due to bad credit scores? If you have a low CIBIL score (below 650) and need urgent funds, don’t lose hope! Several lenders now offer personal loan for bad credit with flexible terms.
Loans for Bad Credit as a Personal Loan Customer in India
What is Personal Loans for Bad Credit?
A personal loan for bad credit is an unsecured loan offered to individuals with low credit scores (typically below 550). Since traditional lenders consider bad credit borrowers high-risk, these loans often come with higher interest rates and stricter terms to mitigate lender risk.
Different type of Personal Loans for Bad Credit you can avail
How Does a Bad Credit Personal Loans Work?
Application – Submit basic personal, financial, and employment details.
Credit Check – Lenders perform a soft or hard credit inquiry.
Approval & Offer – If approved, you’ll receive loan terms (amount, APR, repayment period).
Funding – Once accepted, funds are deposited into your bank account (often within 1-2 business days).
Repayment – Fixed monthly payments over the loan term.
Requirements for getting a Personal Loan for Low CIBIL
Eligibility Criteria for Bad Credit Personal Loans
While requirements vary by lender, common eligibility criteria include:
- Minimum Credit Score – Usually 500 or lower (some lenders accept no credit check loans)
- Stable Income – Proof of employment or regular income (e.g., pay stubs, bank statements)
- Debt-to-Income (DTI) Ratio – Ideally below 50%
- Age – Must be at least 18 years old and a legal resident
List of required documents for Personal Loan with Low Credit Score in India
Documents Required for Low CIBIL Personal Loan
Getting a Personal Loan for Low CIBIL Score is quite easier than you think, all you need to provide are some basic documents to avail a Personal Loan for Poor CIBIL Score in India without doing any paperwork.
A personal loan for bad credit can be a lifeline in financial emergencies, but it’s not always the best solution. Since these loans come with higher interest rates and fees, it’s crucial to know when taking one makes sense—and when you should explore other options.
Documents that are required for getting a Bad CIBIL Loan in India are as follows:
- KYC Documents: Aadhaar Card & PAN Card
- Income Proofs: Bank Statements
- Employment Proofs: Salary Slip or ITR
How a Bad Credit Personal Loan can help you in uncertain situation
When Should One Take Personal Loan for Bad CIBIL?
1. Emergency Expenses (No Other Options)
If you’re facing an urgent, unavoidable expense (medical bills, car repairs, home repairs), a bad credit loan can help when savings or credit cards aren’t an option.
Example: Your car breaks down, and you need it for work. A quick loan could cover repairs to keep you employed.
2. Debt Consolidation (If It Lowers Your Interest Rate)
If you have multiple high-interest debts (payday loans, credit cards), consolidating them into one lower-interest personal loan can save money—if the new loan’s APR is better.
Tip: Calculate if the new loan’s total cost (interest + fees) is less than your current debts.
3. Avoiding Costlier Options (Like Payday Loans)
Payday loans charge 300%+ APR, trapping borrowers in debt cycles. A bad credit personal loan (even at 35% APR) is far cheaper.
Better Alternative: Credit unions offer Payday Alternative Loans (PALs) at lower rates.
4. Building or Repairing Credit
If you repay on time, a personal loan can improve your credit score, helping you qualify for better loans later.
Pro Tip: Use a credit-builder loan if your main goal is credit repair.
Numbers Speak
Increasing numbers of Low CIBIL Personal Loan disbursal speak about us.
Customer Testimonials
What Client Says
Applied for a personal loan of Rs.2 lakhs and got instantly while I was in an emergency situation at 4 a.m. in the morning but CapitalCow Instant Personal Loan saved me.
Manasi Sinha
Bad Credit Personal Loan
Needed an instant personal loan of Rs.5 lacs at the lowest interest rates and got in 1 hour from the best lender instantly, thank you CapitalCow Personal Loan team.
Roshan Seth, Ahmedabad
Personal Loan for Low CIBIL Score