How to get a personal loan despite a low CIBIL Score?

Personal loans for low CIBIL score

Here, a story of Ajay with a low CIBIL score, looking for her daughter’s admission. Ajay was happy. His daughter had got shortlisted for admission to one of the best school in the town. He now required to pay an upfront payment of Rs. 1 lac to secure the admission.

He did not have the amount readily available with him. So, he walked down to his bank and applied for a personal loan.

After 3 days, he followed up with the bank only to know that his application has been rejected.

On inquiring the reason, he was told that he had a low CIBIL score. He was unhappy.


Ajay’s is not alone in facing a loan rejection. Several other people face the same ordeal when accessing loans to fulfill one or other important need that they have.

A CIBIL Credit Score is a representation of your creditworthiness. It is assembled from the data about your loans and credit cards that are supplied by various banks to CIBIL. The score ranges from 300 to 900.

Do you know? Most loan applications that are approved by banks have a CIBIL credit score of 750 or more.

CIBIL score meter

Image Source: CIBIL, June 25, 2015; The number in the blue background is the CIBIL score.

As it stands, the CIBIL Credit Score is a key parameter in deciding whether you will get a loan or not.

Ajay discovered that his CIBIL Score was just 650. That is way below required.

His bank manager also told him that with this score, it would be difficult to get a loan from any other bank too.

He had many questions in his mind.

“Why is my credit score low? I don’t even use credit cards anymore.?”

“How can I improve this score quickly?”

“What do I do now to pay the school admission fees?”

Personal loan for low cibil score

Well, there could have been several reasons for a low credit score most important being, no timely payments of loans in the past, taking on too much credit, wrong information provided by banks, etc.

Whatever the case might be, it is not possible to improve your score immediately. It can easily take 6 months to a few years to get your credit score back on track.

Read more: Is your CIBIL Score low? Reasons and how to improve

Ajay didn’t have so much time. For him, the last question of arranging money for the school fees was the most important as of now.

Since the doors of the banks were closed to him due to low CIBIL score, he didn’t want to waste any more time. He was actively looking for other sources for the loan.

As he searched the internet, he came across the alternative loan platform of peer to peer lending.

Personal Loans for low CIBIL score

Individual borrowers and lenders come together on this platform to take and offer loans. He found this interesting.

The platform screened the borrowers on various parameters and allowed them to set an interest rate that they were willing to pay for the loan amount.

The lenders would then connect with the borrowers and on mutual agreement, the loan would be made.

The payments are made in monthly installments.

Ajay decided to try this out. All it required was to sign up and provide some basic details about himself.

The best part was that the screening went beyond the CIBIL credit score and evaluated 30+ other parameters such as financial behaviour, future financial prospects, education, demographics, socio-economic conditions, etc.

This brings out a holistic profile of an individual. Through this model a proprietary credit score is generated by the system, which then enables even someone like Ajay, who has a low CIBIL score, to access a loan.

Ajay provided all the required information and submitted his loan requirement of Rs. 1 lac for 1 year.

The very next day he received offers from multiple lenders that too at a rate of 18%.

Ajay was glad. The platform took care of the entire process and arranged the loan agreement between Ajay and the lenders. As soon as the amount arrived in his bank account, he paid the school admission fees.

Ajay is happy that he could get his daughter admission to one of the best schools in the city. He wants her to have the best possible education.

By the way, the platform Ajay accessed was that of

Do you want to know more about peer to peer lending platform

Know how it works here.

Create your i2iFunding account now.

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