😟 Bad Credit Holding You Back? Here’s How You Can Still Get a Personal Loan in India

💬 “My loan keeps getting rejected because of my credit score — what do I do now?”

If this sounds like you, you're not alone. Thousands of people across India are facing rejections from banks due to poor credit history. But here’s the good news: having a low CIBIL score doesn't mean you're out of options. There are now real, affordable loan solutions, even for borrowers with bad credit — and some of them start at interest rates below 10%.

⚠️ “Nobody will lend to me because of my bad credit score.”

👉 Truth: Traditional banks may reject you — but NBFCs and fintech lenders won't.

Banks tend to avoid anyone with a CIBIL score below 650. However, NBFCs (Non-Banking Financial Companies) and new-age fintech lenders in India are more flexible. They assess your income stability, not just your past.

Example: Rajesh, a delivery driver from Pune, had a CIBIL score of 610 due to missed EMI payments during COVID-19. HDFC rejected his application. But Poonawalla Fincorp approved him for a ₹1.5 lakh loan at 10.5% interest, disbursed in 48 hours.

📉 “Aren’t bad credit loans too expensive?”

👉 Myth: Some bad credit loans now start at 9.9%, lower than you’d expect.

Here's a comparison of legit, low-interest loan providers in May 2025 that accept low CIBIL scores:

Lender	Starting Interest	Max Loan	Credit Score Flexibility	Key Benefit
Poonawalla Fincorp	9.99%	₹30 lakh	Yes (CIBIL ≥ 600)	Fast disbursal, easy docs
Navi	9.9%	₹20 lakh	Yes (low credit OK)	Fully digital, 100% app-based
Tata Capital	10.99%	₹25 lakh	Moderate flexibility	Longer tenures (up to 72 months)
SBI (for salaried)	10.30%	₹5 lakh	Better with stable income	Trusted government bank

😩 “My credit is bad because of an emergency, not bad habits.”

👉 Reality: Lenders now consider your income stability, not just your score.

If you can show:

A steady job or business income
Timely rent payments or utility bills
Minimal current debts

…you stand a better chance, even with a low score.

Example: Anita, a 34-year-old school teacher from Jaipur, had a 620 CIBIL score due to family medical bills. Using her salary slips and six months’ bank statements, she secured a loan through Tata Capital at 11.2%, with no guarantor.

📲 How to Get a Loan Even with Bad Credit – 5-Step Mobile Checklist

✅ Check your CIBIL score: www.cibil.com
✅ Compare NBFC offers: Use trusted apps like Navi, PaySense, or MoneyTap.
✅ Gather documents: Aadhaar, PAN, income proof (salary slip or bank statement).
✅ Apply online or via mobile app – most offer full approval in under 48 hours.
✅ Repay on time – this loan is your chance to rebuild credit.

💡 Expert Tip: Ask for a Lower Amount First

If your credit history is weak, asking for ₹50,000–₹1 lakh initially boosts your approval chances. Many NBFCs offer top-up loans after 3–6 months of timely repayment.

🚨 Watch Out: Red Flags When Applying

Avoid these common scams and predatory lenders:

🚫 Warning Sign	🛡 What to Do Instead
They ask for upfront processing fee	Go with RBI-registered NBFCs
They guarantee loan “for any score”	Real lenders always assess income + risk
Hidden charges in small print	Always read terms & compare on portals

🔁 “How can I fix my credit for the future?”

Here’s how to use your new loan as a stepping stone:

📅 Set EMI reminders or use auto-debit
📈 Track your score monthly on apps like OneScore
💰 Use only 40–50% of your credit card limit
🚫 Never miss EMI deadlines, even by a day

In just 6–9 months, your CIBIL can improve by 50–100 points.

📚 References

✅ Final Takeaway

You don’t need a perfect credit score to move forward financially. Whether you’ve had past defaults, missed EMIs, or are recovering from an emergency, you still have choices.

💬 Compare wisely, borrow smart, repay on time — and this loan could be your path back to financial freedom.