How to Get a Personal Loan with CIBIL Score Below 600 in India (My Proven Strategies from the Banking Floor)
When your CIBIL score dips below 600, getting a personal loan feels like knocking on a locked door. Most banks won’t entertain your application, and the rejection itself can further hurt your score.
But here’s the truth — low credit doesn’t mean no credit.
As someone who worked extensively in the loan department of a leading private bank, I’ve seen this situation play out hundreds of times. I’ve helped customers with poor scores secure personal loans by using smart, strategic steps — many of which you’ll read here today.
This guide is more than theory. It’s backed by practical experience and crafted for people like you who genuinely need help but are trapped by the credit score system.
🔍 What Does a CIBIL Score Below 600 Really Mean?
Before we jump to solutions, let’s decode what that number means.
The CIBIL score (ranging from 300 to 900) is India’s most trusted credit rating. Here’s the breakdown:
- 750-900 – Excellent
- 650-749 – Good
- 600-649 – Fair
- Below 600 – Poor
A score below 600 usually indicates:
- Missed or delayed EMIs
- Loan defaults or settlements
- Multiple loan applications in a short span
- High credit utilization on credit cards
- No or very thin credit history
As a result, banks consider you a high-risk borrower. This makes approvals harder—but not impossible.
💼 My Personal Experience: Inside the Lending Room
While working at DCB Bank, I regularly interacted with loan applicants who had scores as low as 530 or 570. In many cases, their repayment issues were genuine—caused by temporary job loss, medical expenses, or business downturns during COVID.
What surprised me was how eager some lenders still were to give loans to such customers—if they knew how to present themselves properly.
A Real Case:
One of my clients, Mr. Sharma, had a score of 582. He was denied twice before he came to our branch. We helped him get approved for a ₹75,000 personal loan by:
- Showing consistent income through salary slips
- Applying with a co-applicant
- Choosing a smaller loan tenure with EMI auto-debit
This was a game-changer for him — and many others I later guided.
Now, let me walk you through the same steps.
✅ 7 Proven Ways to Get a Personal Loan with CIBIL Below 600
1. Choose the Right Type of Lender
Banks are strict with credit policies. But NBFCs (Non-Banking Financial Companies) are far more flexible. Some even specialize in loans for bad credit.
Top NBFCs for Low CIBIL Personal Loans (2025):
- KreditBee
- MoneyTap
- Clix Capital
- Faircent (P2P)
- Bajaj Finserv (via secured route)
💡 Pro Tip: Apply to only one or two carefully chosen lenders. Multiple hard inquiries can further reduce your score.
2. Use a Co-Applicant or Guarantor
If a spouse, sibling, or parent has a CIBIL score above 700, apply jointly.
Benefits:
- Higher loan amount
- Lower interest rate
- Better chances of approval
At DCB, we saw over 60% of low-score applicants get approved when a co-borrower was added.
3. Go for a Secured Personal Loan
When your credit score is low, offering collateral changes the game.
Accepted collaterals:
- Fixed deposits (FDs)
- Gold
- LIC policies
- Mutual funds
A secured personal loan not only gets approved faster but also comes with lower interest rates (as low as 10–12%).
4. Show Income Stability
If you’re salaried, attach:
- Last 6 months’ salary slips
- Form 16 or ITR
- Bank statements
Freelancers and self-employed individuals can submit:
- GST returns
- Business turnover documents
- ITR for last 2 years
Lenders want to see that you earn consistently, even if you’ve had credit problems in the past.
5. Apply for a Smaller Loan Amount
If your credit profile is weak, don’t ask for ₹5–10 lakhs right away. Instead:
- Start with a ₹25,000–₹1,00,000 loan
- Keep the tenure short (3–12 months)
- Repay on time
This builds a new positive credit history, and you’ll qualify for larger loans later.
6. Leverage Digital Lending Apps
Fintech platforms are more focused on income patterns and digital verification than credit history.
Some popular ones:
- NIRA
- EarlySalary
- CASHe
- PaySense
⚠️ Warning: Many charge high interest (24%–36%). Always read the terms and conditions.
7. Fix Errors in Your CIBIL Report First
Many people don’t know this — CIBIL reports often have mistakes.
At DCB, we once helped a customer fix an incorrect “loan default” tagged against them. It was a closed account, but it stayed as “written off” in their report.
How to fix CIBIL errors:
- Download your report at cibil.com
- Look for:
- Loans you didn’t take
- Wrong account statuses
- Duplicates
- Raise a dispute online through the CIBIL portal
Corrections usually take 15–30 days but can boost your score by 50+ points.
🧠 What Lenders Look For Besides CIBIL Score
Even with a low score, you may get approved if you meet other parameters:
| Parameter | Ideal Condition |
|---|---|
| Monthly Income | ₹20,000+ (salaried) or ₹30,000+ (self-employed) |
| Job Stability | 1+ year in same job |
| Bank Statements | No cheque bounces, regular salary credits |
| Existing EMIs | Should not exceed 40% of monthly income |
If you meet these, highlight them in your application.
⚠️ Red Flags to Avoid
- ❌ Don’t fall for “guaranteed approval agents” — many are frauds.
- ❌ Avoid applying to 4–5 lenders at once.
- ❌ Don’t hide existing loans — lenders will see them in your credit report.
- ❌ Don’t delay EMI payments once the new loan is sanctioned.
🎯 Bonus: What to Do If You’re Still Rejected
If you’re still denied a loan, don’t lose hope. Use this time to:
- Pay off pending credit card dues
- Request your old lender for “closure updates” on the CIBIL portal
- Apply for a secured credit card (like SBI or ICICI FD-backed cards)
- Start an EMI-based saving product like Bajaj EMI card or Slice
Within 3–6 months, you’ll see your score improve enough to try again — with far better chances.
🧾 My Personal Take: Patience Pays Off
I’ve seen hundreds of people start with bad credit and completely turn things around in less than a year. But the key is to be patient, informed, and proactive.
A personal loan can help you out of a crunch — but only if you manage it responsibly.
If you’re ready to take the next step, don’t just apply blindly. Plan it smartly, like a credit comeback strategy.
📘 Final Words: Rebuild While You Borrow
A CIBIL score below 600 is not the end of the road — it’s just a sign that you need a smarter, more strategic route.
By following the steps above and avoiding common traps, you can get the funds you need today while also building a better credit future.