Last updated 12 Nov 2026
Yes, you can sometimes get a personal loan with a low credit score, but fewer lenders will say yes, the amount is usually smaller and the terms are less favourable. Your strongest options are usually a secured loan (gold or a fixed deposit), a smaller loan with a co-applicant who has a good record, or waiting a few months while you fix the report. Anyone who promises approval whatever your history is not being straight with you.
This guide sets out what lenders see, which routes are realistic, which ones to avoid, and a step-by-step way to rebuild your score so that the next application is stronger.
What "low" means to a lender
There is no single cut-off; each lender decides its own. In general, scores in the lower part of the scale mean the report shows something a lender worries about: late payments, a settled or written-off account, high card use or too many recent enquiries. An unsecured personal loan has no asset behind it, so lenders lean on the report more here than for a home or gold loan. For how this varies, see minimum credit score by loan type.
A low score also differs from no score. If you are new to credit, you have a thin file, not a bad one. Lenders handle thin files differently from damaged ones.
Realistic options, compared
Options when your credit score is low
| Option | How it helps | What to watch |
|---|---|---|
| Smaller unsecured personal loan | A lower amount means a lower EMI and lower risk to the lender | The lender may still decline; terms can be less favourable |
| Gold loan | The gold secures the loan, so the lender relies more on its value than on your score | You risk the gold if you cannot repay; check the lender's valuation and charges |
| Loan against a fixed deposit | Your own deposit secures the loan | Your deposit is held as security; confirm what happens if you miss payments |
| Personal loan with a co-applicant | The lender reads both incomes and both reports | The co-applicant is equally responsible; a weak report on their side can hurt |
| Employer or salary-account route | Some lenders look at your salary account history with them | Offers depend on that lender's policy; they are not automatic |
| Wait and rebuild first | A stronger report widens options and can improve terms | Takes months; you may need the money sooner |
Read the product pages for salaried personal loans, self-employed personal loans and gold loans, and the guide on gold loan versus personal loan.
Secured alternatives in more detail
Gold loan
A gold loan depends mainly on the weight and purity of the gold and the loan-to-value (LTV) the lender is allowed to apply. The credit report matters less than for an unsecured loan, though some lenders still look at it. It suits short-term needs. The risk is clear: if you do not repay, the lender can sell the gold under the loan terms. See gold loan LTV for the rules.
Loan against a fixed deposit
If you hold a fixed deposit, a lender may lend against it. Since your own money is the security, the score matters less. You usually keep earning interest on the deposit while paying interest on the loan, and the rate difference is set by the lender. Check what happens to the deposit if payments are missed.
Co-applicant
A co-applicant with a clean report and steady income can lift an application. They share the responsibility for repayment, so choose someone who understands the commitment. Read co-applicant vs guarantor before you ask a family member.
Choices to avoid
- Anyone who says your loan is certain whatever your history. No genuine lender can promise that before checking your papers.
- Anyone who asks for money in advance to "release", "process" or "approve" the loan.
- Apps that ask for access to your phone contacts, gallery or files. A regulated lender does not need these to lend.
- Many applications in a few days. Each application can add a credit enquiry, and too many lender checks in a short time can lower your score.
- Borrowing to pay another EMI. Have a clear plan first.
Compare any offer on its APR in the Key Fact Statement, which includes the lender's charges, rather than on the headline rate alone. See key fact statement and APR.
How to rebuild your score, step by step
- Get your credit report from each bureau and read every line. Dispute wrong entries with the bureau and with the lender that reported them.
- Clear overdue amounts first. A paid account in good standing helps more than one left overdue.
- Set up auto-debit for every EMI and card minimum so that nothing is paid late.
- Bring card use down; using a small share of each limit looks safer than using most of it.
- Keep old accounts in good standing open; a longer history helps.
- Apply for nothing new while you rebuild, unless you need it.
- If you have little history, a small secured product against a deposit, repaid on time, can start a record.
- Check your own score every few months. Checking your own score does not lower it.
How long this takes depends on what damaged the report. Months of clean payments are usually needed before a lender sees a clear change. Read more in credit score and credit report explained.
A worked example
A salaried worker takes home ₹35,000 a month and pays ₹8,000 in EMIs. The credit report shows two late card payments in the last year. The worker wants ₹3,00,000 as a personal loan.
Suppose a lender allows total EMIs up to 50 per cent of income in this illustration: ₹17,500. With ₹8,000 already committed, ₹9,500 is available. At an example rate of 14 per cent a year (an illustration, not a quote) over three years, the EMI on ₹3,00,000 is roughly ₹10,250, slightly over the room. A loan of ₹2,50,000 gives an EMI of roughly ₹8,550, which fits. A co-applicant earning ₹30,000 with no EMIs would raise the combined room further. Instead of one large unsecured request that is likely to be declined, the worker has a smaller request and a clear plan. Use the EMI calculator and the FOIR calculator with your own figures.
How LOANZ 360 helps
LOANZ 360 is a loan aggregator, not a lender. Before any application goes to a lender, it compares your details with each partner lender's published eligibility criteria, so you apply only where you are likely to qualify. This helps avoid unnecessary credit enquiries; too many lender checks in a short time can lower your score. Our team prepares a credit assessment summary before the file reaches a lender. You choose where to apply, and one advisor follows the file. The lender decides every loan. Start with the eligibility check.
Frequently asked questions
What is the minimum credit score for a personal loan?
There is no single minimum. Each lender sets its own policy, and it can change by product and profile. A low score does not always mean refusal, but it narrows your options and can mean a smaller amount or less favourable terms.
Can I get a personal loan with a very low score and no collateral?
It is difficult. Without an asset or a co-applicant, many lenders decline. You can improve your chances with a smaller amount, a co-applicant, or by clearing overdue dues before applying.
Is a gold loan easier to get than a personal loan with a low score?
Often yes, because the gold secures the loan and the lender relies mainly on its value. But you risk the gold if you cannot repay. Borrow only what you can repay comfortably and read the terms.
Will a co-applicant fix a low score?
Not by itself. The lender reads both reports and both incomes. A co-applicant with a clean report and steady income helps, but the lender may still decline if the combined profile is weak.
How long will it take to improve my score?
It depends on what is pulling it down. Clean payments, lower card use and fewer applications help over months. A wrong entry corrected by the bureau can change it sooner. There is no honest way to promise a quick jump.
Does applying to many lenders raise my chances?
No. Each application can add a credit enquiry, and too many lender checks in a short time can lower your score. Check eligibility first and apply only where you are likely to qualify.
Are loans advertised without a credit check safe?
Be careful. A regulated lender assesses your ability to repay. Offers that skip all checks, ask for advance payments or request access to your contacts and gallery are warning signs. Check the lender's name and read the Key Fact Statement.
Related reading: minimum credit score by loan type, why loans get rejected, personal loan basics, personal loan alternatives, personal loan by salary, gold loan versus personal loan, credit score in the glossary, secured loan, FOIR calculator.