Short answer: Yes, some RBI-regulated lenders do lend to people with low credit scores, but usually for smaller amounts, at higher interest rates, or against security such as gold, a fixed deposit or mutual funds. Your income, existing EMIs and the reason your score is low matter as much as the number itself. No legitimate lender can guarantee approval, so treat any such promise as a warning sign.
Last updated: 13 October 2026.
This hub explains what a low score means, which borrowing options are realistic, what they cost, and how to start repairing your credit so the next loan is cheaper.
What counts as a low credit score?
CIBIL scores run from 300 to 900, and the other three bureaus (Experian, Equifax and CRIF High Mark) use similar ranges. There is no official cut-off, but many lenders treat scores below about 650 as high risk and scores between 650 and 700 as borderline. A blank score (shown as NH or -1) means you have no credit history, which is different from a bad one. You can check your own score free once a year on the CIBIL website, and our guide to credit reports from all four bureaus explains how to read it.
| Score band | How lenders tend to see it | Typical outcome |
|---|---|---|
| 750 and above | Low risk | Widest choice of lenders and lower rates |
| 700–749 | Acceptable | Approval likely if income and FOIR fit |
| 650–699 | Borderline | Fewer lenders; higher rates or lower amounts |
| Below 650 | High risk | Secured loans or specialised lenders; many rejections |
These bands are indicative only; each lender sets its own policy. For score-specific guides see personal loan for CIBIL score 600 and personal loan for CIBIL score 650.
Why your score is low matters
Lenders read the full report, not just the score. A score pulled down by high credit card utilisation is treated very differently from one with a recent write-off. Common causes include:
- Missed or late EMIs, shown as days past due (DPD). See DPD in your CIBIL report.
- Accounts marked settled or written-off. Our guide to settled vs closed in CIBIL explains the difference.
- Many loan applications or small app loans in a short time.
- Errors, such as a loan that is not yours or a closed loan still shown as active.
Errors can be disputed and corrected; accurate negative information cannot be removed by anyone. If you find a mistake, follow our CIBIL dispute guide. Under RBI’s framework, a dispute should be resolved within 30 days, and if it takes longer you are entitled to ₹100 for each day of delay, as explained on CIBIL’s compensation page.
Realistic options when your score is low
| Option | Why it can work | What to watch |
|---|---|---|
| Gold loan | Secured by gold, so the score matters less | Loan-to-value limits; risk of auction if you default |
| Loan against FD, mutual funds or shares | Secured; often lower rates | Margin calls if market value falls |
| Smaller unsecured loan from an NBFC | Some NBFCs lend to mid-range scores | Higher APR; check processing fees in the KFS |
| Co-applicant or guarantor | A stronger profile supports the application | They become equally responsible for repayment |
| Salary advance from employer | No credit check in many cases | Small amounts; deducted from next salary |
If you have a past default that is now cleared, see loans for CIBIL defaulters for how lenders view a repaired record.
Use our gold loan calculator or loan against mutual funds calculator to see how much security-backed borrowing could give you.
Worked example: the cost of a higher rate
Take a ₹1,00,000 loan over 24 months. At 14% a year the EMI is about ₹4,800 and total interest about ₹15,200. At 24% a year the EMI is about ₹5,290 and total interest about ₹26,900. A lower score here costs roughly ₹11,700 more, which is why it often pays to improve your score or offer security before borrowing a large amount.
Red flags to avoid
- Anyone promising guaranteed approval or a loan “regardless of CIBIL”.
- Requests for an upfront fee before the loan is sanctioned.
- Apps that are not linked to an RBI-registered bank or NBFC. Check using our guide to verifying a loan app.
- Lenders who do not give you a Key Fact Statement showing the APR before you sign.
If you have a complaint against a regulated lender that is not resolved within 30 days, you can escalate it to the RBI Ombudsman. Our RBI rules guide explains how.
Check loan offers from RBI-regulated lenders that consider mid-range credit scores, with the APR shown upfront.
Rebuilding your score
Most of the work is simple and slow: pay every EMI and card bill on time, keep card usage well below the limit, avoid new applications for a few months, and clear overdue accounts. Since January 2025, RBI requires lenders to update credit information at least fortnightly, so good behaviour shows up sooner than it used to, but no one can promise a specific score jump. Start with how to improve your CIBIL score.
Frequently asked questions
Can I get a personal loan with a CIBIL score of 600?
It is possible with some NBFCs, usually for a smaller amount and at a higher rate, especially if your income is stable and existing EMIs are low. Secured loans are easier to get.
Is a gold loan a good option with a bad credit score?
It is often the most accessible option because the gold is the security. Borrow only what you can repay, since unpaid gold loans can end in auction.
Can someone remove a default from my CIBIL report for a fee?
No. Accurate information cannot be removed. Only genuine errors can be corrected, and you can raise a dispute yourself for free.
Does checking my own score lower it?
No. Checking your own report is a soft enquiry and does not affect your score. Loan applications create hard enquiries, which can.
How long does it take to improve a low score?
It depends on what caused it. Clearing overdue amounts and paying on time usually shows gradual improvement over several months, but there is no fixed timeline.
Sources
- TransUnion CIBIL: Framework for compensation
- RBI: Frequency of reporting of credit information (8 August 2024)
- TransUnion CIBIL: free CIBIL score and report
Disclosure: FundsTiger (Gatimaan Finance Advisors Pvt. Ltd.) is a loan marketplace and lending service provider for RBI-regulated lenders. Aparampaar Finance Pvt. Ltd. (Omozing), one of those lenders, is a related party of FundsTiger. This article is general information, not financial advice. Read your loan agreement and KFS before you decide.