Credit Score


Availing a personal loan is much easier today. Earlier, lenders use to decide your loan eligibility solely based on your credit score. But today, you can avail a quick loan despite a low credit score. This is because the new fintech companies consider a lot of parameters and have a more complex algorithm to analyse the risk associated with your profile.

Thus, you may avail an instant personal loan through a money loan app even if you have a low credit score. However, you must fulfil the mentioned criteria like the minimum monthly salary, age and employment. You should also be able to submit all the requested documents.

Read on to understand how you can avail a quick loan through a money loan app despite having a poor credit score.

What Is a Credit Score?

A credit score is a widely used indicator of your creditworthiness. It is a quantitative evaluation of your financial situation that provides the lenders with clear criteria to ascertain how you have managed your prior loans and if you would be able to repay the loan on time.

In India, there are four major credit bureaus. CIBIL is the oldest registered credit bureau. You can visit the CIBIL website to check your credit score. Other reputed credit bureaus include Equifax, Experian and CRIF Highmark.

How Can I Get Approval for a Personal Loan With a Low Credit Score?

Despite having a poor credit score, lenders may offer you a loan if you meet their other specifications. However, do note that they may offer you the loan at a higher rate of interest. But you can renegotiate with your lender once your score improves. Here are a few tips on how you can get a quick loan at a low rate of interest.

1. Show That You Have Good Earning Potential

Some lenders may approve your loan application if you show good and stable earning potential. If you have a reliable and high-income source to cover your loan EMIthen the lender may approve your loan application. Also, note that you must include all your income sources in your loan application other than your salary. This may include rental income, income from your investments, freelancing income etc.

.2. Add a Co-Applicant to your loan application.

If you have a low credit score then you can bring in a co-applicant to strengthen your loan profile. Lender credit risk is decreased when a co-applicant with a steady income is included in the loan application. This is because the co-applicant shares equal responsibility for debt repayment. Adding a co-applicant with a solid credit score would help you get your loan application accepted. You can ask your spouse or parentsto become your co-applicant.

3. Accept a Higher Interest Rate as a Compromise 

After doing some research you may find that certain lenders grant loans to people with a bad credit score. The catch here is that these lenders will offer you the loan at a comparatively higher rate of interest. Also, the loan amount and loan tenure would be comparatively less.

4. Choose a Fintech Company or NBFC Wisely

Even if you have a high level of disposable income and steady employment, most banks and NBFCs are unlikely to accept yourquick loanapplication if you have a poor credit score. However, in recent years there has been a significant amount of increase in the number of lenders. You can find many modern Fintech lenders who offer personal loans through money loan apps.

5. Work for a Reputable Employer and Maintain a Stable Job

People who work for reputable corporations, multinational corporations, or government agencies are seen to have more income security than others. As a result, lenders may approve your personal loan requests despite a low credit score. However, you must complete at least six months in your current job to avail this loan.

6. Borrow a Loan with a Security Deposit

We know that a personal loan is an unsecured loan, but some lenders may approve your loan even if you have a bad credit score, provided you put up collateral for it. Shares, real estate, fixed deposit accounts, gold, and several other assets are among these collaterals. Personal loans against FDs are very popular. You may get a low-interest rate on this loan despite a poor credit score.

7. Start Addressing Your Credit Situation

Although it may take some time, this is the best strategy to prevent loan rejections in the future. You can pay off your current debt, alter your spending patterns, continue to make regular EMI payments, and pay your credit card bills on time. There are just some simple steps that you will have to follow to improve your credit score. If you start building your credit score today you are more likely to get your loan approved at a desirable rate of interest in future.


Aquick loanis a greatfinancial tool to meet your financial emergencies. However, to avail a loan at the best terms you need to maintain a good credit score. But if your credit score had suffered in the past due to negligence or poor borrowing behaviour, you can still avail a quick loan through a money loan app. Some banks or NBFCs may also provide you with a quick loan despite a poor credit score but make sure to check their terms and conditions thoroughly.

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