Getting A Personal Loan With A Low Credit Score In India: Smart Moves For 2025 Borrowers

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In India, borrowers with low credit scores can now access personal loans through fintech apps, NBFCs, and secured lending options. Platforms use alternative data and flexible criteria to assess eligibility. Co-applicant support, salary-linked loans, and AI-based risk models are making credit more inclusive and accessible in 2025.

In 2025, securing a personal loan with a low credit score in India is no longer a distant possibility. Thanks to evolving fintech platforms, flexible NBFCs, and alternative credit assessment models, borrowers with sub-750 scores now have access to tailored lending options that prioritize financial inclusion.

Key Highlights For Low-Score Borrowers

- Fintech platforms like KreditBee, MoneyTap, and CASHe offer instant personal loans with minimal documentation, often bypassing traditional credit score requirements

- NBFCs such as Bajaj Finserv, Tata Capital, and Fullerton India provide loans to applicants with scores as low as 600, focusing instead on income stability and employment history

- Secured personal loans—backed by fixed deposits, gold, or insurance policies—are easier to obtain and come with lower interest rates for low-score applicants

- Co-applicant or guarantor-based loans allow borrowers to leverage a family member’s stronger credit profile to improve approval chances

- Salary-linked loans through employers or digital payroll platforms offer pre-approved limits based on monthly income, reducing reliance on credit scores

- Loan apps like EarlySalary and Navi use AI-driven risk models that factor in spending behavior, social data, and repayment history beyond CIBIL scores

Strategic Insights

Borrowers should avoid applying to multiple lenders simultaneously, as each inquiry can further dent their credit score. Instead, they should research lenders that explicitly cater to low-score profiles and maintain transparency in terms and conditions.

Industry Context

India’s personal loan market is expanding rapidly, with digital lending expected to cross ₹15 lakh crore by 2026. The shift toward inclusive credit models reflects a broader trend of financial democratization, especially among millennials, gig workers, and first-time borrowers.

Market Outlook

Experts anticipate continued growth in low-score lending, driven by tech-enabled underwriting and rising demand for short-term credit. Regulatory bodies like RBI are also encouraging responsible lending practices to protect borrowers from predatory interest rates.

Sources: Moneyexcel, Moneycontrol, Nobroker

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