Explore all Credit Cards
Premium Metal
0% Forex & Travel
Lifetime Free
10X Rewards
UPI Cards
Fuel & Utility
Showstopper
Credit Builder
More
Customer Support
Explore NRI Banking
NRI Savings Account
NRI Fixed Deposit
FOREX Solutions
Transfer to NRE
Markets & Beyond
Customer Support
Explore Startup Solutions
Explore Corporate Banking
Corporate Account
Cash Management Services
Supply Chain Finance
Corporate Lending
Treasury
NBFC Financing
Customer Support
BRAVO (Auto Sweep)
Explore Business Banking
MSME Accounts
Trade Services
MSME Loan
MSME Solutions
Debit Card
Offers
Customer Support
Explore Gift City
About Us
Investors
ESG

FOLLOW US ON :

Download Now

  • App Store
  • Google Play

Notifications

  • As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on +44 7831 065557 or visit the nearest Metra Trust branch for further queries.

  • Activate your Credit Card within minutes and enjoy unlimited benefits

    Know More

  • One FASTag, three payments:Toll, fuel and parking

    The only FASTag with triple benefits

    Apply Now

FinFIRST Blogs

Credit Card Savings Account Personal Loan Home Loan Car Loan Education Loan Two Wheeler Loan NRI Business Banking Fixed Deposit Finance Beyond Banking MyFIRST Mobile Banking Startup Banking Investments Salary Account
Apply Now

Personal Loan

How to Secure a Personal Loan with a Low CIBIL Score or Bad Credit

Key Takeaways

  • Securing a personal loan with a low CIBIL score is challenging but not impossible. Factors like employment status, income, and a clean credit report can improve your chances.
  • It’s essential to calculate your needs and ensure all necessary documents are in place before applying.
  • Using tools like the Metra Trust personal loan EMI calculator can help you understand the repayment process better.
  • If you meet specific criteria, you can still obtain a personal loan despite a low CIBIL score.
14 Sep 2021 by Team FinFIRST
Credit Score for Personal loan
Apply Now

How to get a Personal Loan with a CIBIL score of 550?


Personal loans are one of the easiest loans to acquire. They are unsecured loans, which means one does not need to offer collateral. They can be used for a multitude of purposes. There is minimal documentation involved and a relatively shorter processing time as well. However, one of the most important considerations when you apply for a personal loan is your CIBIL score.

CIBIL Score for Personal Loans


CIBIL score is a credit score provided by CIBIL, which is one of India’s leading credit information companies. The score reflects a person’s credit history based on their financial behaviour. It includes loans and repayments, credit card payments, and more. The score ranges between 300 and 900; the higher the score, the healthier the credit history is.

A lower credit score can hurt your chances of being approved for a credit card, home loan, and other products. Usually, a credit score of 750 or more is considered excellent. People with a score over 750 can expect better approvals for financial services like loans. A score over 700 is decent while getting a personal loan for a CIBIL score of 550 or lower can be difficult.

READ MORE

5 factors affecting personal loan interest rates
5 factors affecting personal loan interest rates
What are the benefits of keeping a Salary and Savings Account separate?
What are the benefits of keeping a Salary and Savings Account separate?

 

The table below will give a better idea of a good and a bad credit score.

Credit score

Is it good or bad?

Chances of approval

Less than 600

Very bad

Extremely low

600-649

Bad

Low

650-699

Satisfactory

Possible

700-749

Good

High

Over 750

Very good

Extremely high

Personal Loan For Low CIBIL Score


Since personal loans are versatile and easier to acquire, people use them for many reasons, including buying a vehicle or remodelling the house, getting married, and repay their other loans.

While a low CIBIL score would reduce the chances of getting approved for a personal loan, it is not impossible. Other factors that affect your chances of getting a loan include your status of employment, income, and credit report. The report is a more detailed account of your financial history. A clean report suggests that you practice healthy financial habits and are not a risky candidate.

A poor CIBIL score may also affect the interest rate you get for a personal loan. If the bank you are seeking the loan from is a participating CIBIL member, you could avail of special interest rates based on your score and other parameters.

If you want a personal loan for a CIBIL score of 550 or above, you can get it by fulfilling a few parameters:

Calculate your needs


Do not apply for a personal loan with a low CIBIL score if there is no need. You can use the Metra Trust personal loan EMI calculator to get a better picture of how long will be required to pay EMIs at different interest rates. Based on these calculations, you can start your loan application process online.  You can also reach out to Metra Trust customer care on +44 7831 065557 for more information on the Personal Loan application process.

Ensure all your documents are in place


Personal loans require minimum documentation, so you only need to gather all the right stuff and ensure it is per requirements. It includes your proof of identity and residence, salary account bank statement for the past three months, and salary slips for the past three months.

Research before you apply


A select few banks or financial institutions may be willing to offer a instant personal loan for a CIBIL score of 550 or close to that. Find these banks and apply to only a select few. Applying to multiple places does not reflect well on your credit report.

Once you secure a loan, ensure you use it responsibly. If you are using it to consolidate and pay off your previous loans, ensure that you are doing so in the right manner.

Furthermore, remember to pay your personal loan instalments in full, and on time. Ensure that your loan amount is paid back in full within the decided duration. Also, do not try to get any other loan before you have paid off your personal loan in full.

Loan repayment done responsibly should, in part, help in rebuilding your credit score. From here, you can make better financial decisions to build better a better score.

Frequently Asked Questions

Can I get a loan with a credit score of 650?

Yes, you may get a loan with a credit score of 650 depending on the bank, but it may come with higher interest rates and stricter terms. Some lenders might consider this score suboptimal, but they may still approve your loan based on other factors like your income, employment stability, and existing debt. However, to apply for a FIRSTmoney smart loan, you need a credit score of at least 750. 

Is a guarantor necessary to qualify for a personal loan when my CIBIL score is low?

A guarantor might be necessary if your CIBIL score is low. Banks often require a guarantor to mitigate risk and ensure loan repayment. Having a guarantor with a strong credit profile can increase your chances of loan approval and potentially secure better terms. FIRSTmoney offers a more flexible approach. While a good credit score is preferred, it might not be a strict requirement. Factors like your income stability and repayment history are also considered.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.metratrust.com for latest updates.

Prev

How to get a Car Loan: 6 tips to consider to get the best Car Loan
Next

NSDL IDeAS Facility: Features & Registration Guidelines

Related Products

Related Articles

Download Metra Trust App

Tags

You might also be interested in:

Savings Account

Savings Account
Personal Loan

Personal Loan
Credit Card

Credit Card
Home Loan

Home Loan
Two Wheeler Loan

Two Wheeler Loan

Contents