How to Get a Loan with a Low CIBIL Score: 5 Expert Tips by Chintamani Finlease


In today's financial landscape, a good credit score is often the key to unlocking various opportunities, including loans and credit cards. But, not all individuals has a perfect credit history. Many people find themselves facing the challenge of a low CIBIL score. But fear not, because in this article, we will explore five expert tips from Chintamani Finlease on how to get a loan with a low CIBIL score.

Understanding Your CIBIL Score

Your CIBIL score, often used by lenders to judge your creditworthiness, is the first thing lenders consider when you apply for a loan or credit card. A low CIBIL score, typically below 650, can be a major obstacle. The initial step is to understand why your score is low. Take a close look at your credit report from the Credit Information Bureau of India Limited (CIBIL) for errors or inaccuracies. If you spot any, dispute them to ensure your credit report reflects accurate information.

Timely Bill Payments

Your payment history is a critical factor affecting your CIBIL score. Late payments or defaults can badly damage your credit score. To improve your score, make a dedicated effort to pay all your bills on time. This includes credit card bills, loan EMIs, and utility bills. Establishing reminders or automatic payments can help you avoid missing due dates. Consistently paying on time is key to gradually boosting your CIBIL score.

Reduce Credit Utilization Ratio

The credit utilization ratio, which measures the percentage of your available credit limit that you are currently using, plays a vital role in your credit score. High credit card balances compared to your credit limit can have a negative impact. Aim to maintain a credit utilization ratio under 30%. If your credit cards are maxed out or close to their limits, focus on paying down your outstanding balances. Reducing your credit card debt will have a positive effect on your credit score and show that you're managing credit responsibly.

Consider a Secured Loan

Secured loans can be a lifeline for individuals with low CIBIL scores. These loans are backed by collateral, such as a fixed deposit, gold, or property. Since the lender has an asset as security, they are more willing to lend to individuals with lower credit scores. However, it's crucial to remember that secured loans come with the risk of losing your collateral if you fail to make payments. Therefore, evaluate your financial situation carefully before opting for this type of financing.

Adding a Co-Signer or Guarantor

To increase your chances of loan approval with a low CIBIL score, you can consider adding a co-signer or guarantor to your loan application. A co-signer is someone with a strong credit history and financial stability who agrees to share responsibility for the loan. Their good credit score can offset your low CIBIL score, making you a more attractive borrower to lenders. Before choosing a co-signer, ensure that they fully understand the responsibilities and risks involved, as any defaults will affect their credit score and financial stability.


In conclusion, a low CIBIL score may present challenges, but it should not deter you from achieving your financial goals. By following these expert tips from Chintamani Finlease, you can take proactive steps to improve your creditworthiness and increase your chances of loan approval. Building a positive credit history takes time and discipline, so be patient and persistent in your efforts. With dedication and responsible financial management, you can overcome the hurdles posed by a low CIBIL score and secure the loans you need.


1. What is a CIBIL score, and why is it important for loan approval?

  • Your CIBIL score serves as a numerical reflection of your creditworthiness. Lenders use it to fix the risk of lending to you. A higher score enhance your chances of loan approval.

2. How can I check my CIBIL score?

  • You can check your CIBIL score by visiting the official CIBIL website or using their mobile app. You can also request a physical copy of your credit report by mail.

3. Can I improve my CIBIL score quickly?

  • Improving your CIBIL score is a gradual process that requires consistent, responsible financial behavior. There are no quick fixes, but over time, positive changes will reflect in your score.

4. What is the ideal credit utilization ratio?

  • It is recommended to maintain a credit utilization ratio under 30%. This demonstrates responsible credit management and has a favorable effect on your credit score.

5. Are secured loans a good option for people with low CIBIL scores?

  • Secured loans can be a viable option for individuals with low CIBIL scores, but they come with the risk of losing collateral if payments are not made. It's essential to assess your ability to repay before opting for a secured loan.