Loan with a low CIBIL score: what actually works
A low score does not mean no loan. It means fewer lenders, a higher rate, or a loan backed by security. The worst thing you can do is apply everywhere – every enquiry pulls the score down further. Here is what works.
Updated 2026-10-27 · Funding Desk credit panel
What you can still get
| Option | Why it works |
|---|---|
| Gold loan | Secured by gold – the score matters very little |
| Loan against FD or insurance policy | Secured by your own deposit |
| Home loan from a housing finance company | Many HFCs take lower scores than banks, at a higher rate |
| Loan with a co-applicant | A spouse or parent with a good score strengthens the file |
| Loan against property | The property reduces the lender's risk |
Raise your score in about 6 months
- Get your free report and dispute any wrong entries.
- Clear overdue amounts first, then settled accounts – ask for a "closed" status, not "settled".
- Keep credit card use under 30% of the limit.
- Pay every EMI on time – one late payment hurts more than many on-time ones help.
- Stop applying for new loans for a few months.
First-time borrower with no score?
No score is not the same as a bad score. The government told Parliament in 2025 that RBI has not prescribed a minimum credit score for first-time borrowers. Lenders look at income, bank statements and other checks instead.
Common questions
What is the minimum CIBIL score for a loan?
There is no single minimum. Most banks prefer 700+, many NBFCs and HFCs accept 650, and secured loans like gold loans work with lower scores.
Can I get a home loan with a score below 600?
It is difficult from a bank. A housing finance company, a co-applicant with a good score and a larger down payment improve the chances.
Does checking my own score lower it?
No. Checking your own score is a soft enquiry. Only lender enquiries when you apply count against you.
How long does a settled account stay on my report?
Up to 7 years. Paying the balance and getting the status changed to "closed" helps.