How to Get a High Loan Amount with Low CIBIL Score

April 7, 2025
Posted by: BLS
Category: Credit Score

Your CIBIL Score plays a major role in determining your loan eligibility, interest rates, and overall creditworthiness. But what happens when your score is on the lower side? Is getting a high loan amount impossible with a low CIBIL Score?

Not at all.

In this detailed guide, we’ll explore how you can still secure a high loan even with a low CIBIL Score, what strategies to follow, which lenders to approach, and the key things to avoid.

What is a CIBIL Score?

A CIBIL Score is a three-digit numeric representation of your creditworthiness, issued by TransUnion CIBIL, one of India’s major credit bureaus. This score typically ranges from 300 to 900:

750 to 900 – Excellent
700 to 749 – Good
650 to 699 – Fair
550 to 649 – Poor
300 to 549 – Very Poor

Banks and financial institutions use your CIBIL Score to evaluate how likely you are to repay a loan on time.

Why CIBIL Score Matters for Loans?

Lenders treat your CIBIL Score as a snapshot of your credit history. A high score helps you:

Get loans at lower interest rates
Access higher loan amounts
Enjoy quick approvals
Get pre-approved loan offers

Conversely, a low score often leads to rejections or offers with high interest and stricter terms.

Can You Get a High Loan with a Low CIBIL Score?

Yes, you can.

While your CIBIL Score is important, it’s not the only factor lenders consider. Other factors include:

Income stability
Job or business profile
Loan type
Collateral/security
Debt-to-income ratio
Past repayment behavior

Let’s explore how you can still get approved for a high-value loan with a less-than-ideal CIBIL Score.

Proven Ways to Get a High Loan with Low CIBIL Score

1. Opt for a Secured Loan

A secured loan is a loan backed by collateral like property, gold, or fixed deposits. Since the lender has something to fall back on, your CIBIL Score becomes less critical.

Explore:

Instant Home Loan
Gold loans
Loan against property

2. Apply with a Co-Applicant or Guarantor

Adding a co-applicant with a high CIBIL Score increases your chances of approval and helps get a higher loan amount. This applies well for personal loans or home loans.

Pro Tip: Ensure the co-applicant’s credit history is clean and income is stable.

3. Show Additional Income Proof

If your credit score is low, compensate by submitting:

Salary slips
Rental income proof
Freelance contracts
Business revenue reports

This proves repayment ability despite a poor CIBIL Score.

4. Choose NBFCs or Private Lenders

Non-Banking Financial Companies (NBFCs) are more flexible than traditional banks. They often approve high loans even with low scores, especially if you meet other eligibility criteria.

Explore Better Loan Solutions’ Personal Loan Offers.

5. Improve Your Credit Profile Strategically

If your need isn’t urgent, spend 3–6 months improving your score:

Pay EMIs and credit card bills on time
Maintain a credit utilization below 30%
Avoid applying for multiple loans simultaneously
Monitor your CIBIL report for errors

This simple plan can move your CIBIL Score from poor to fair quickly.

Best Loan Options with Low CIBIL Score

1. Personal Loan for Low CIBIL Score

Some lenders provide personal loans to individuals with poor credit, especially salaried professionals.

Check: Best Personal Loan for Salaried Professionals

2. Instant Business Loan

If you’re a business owner or self-employed, you can leverage business performance over credit score.

Explore: Instant Business Loan

3. Loan Against Property

A property-backed loan gives lenders security, reducing their dependency on your CIBIL Score.

Explore: Instant Home Loan

Factors That Can Affect Your CIBIL Score

To understand why your score is low and fix it, consider the following factors:

a. Late EMI or Credit Card Payments

This reflects poorly on your repayment discipline.

b. High Credit Utilization Ratio

Using over 30-40% of your credit limit reduces your score.

c. Multiple Loan Inquiries

Each inquiry lowers your score by a few points.

d. Defaulted Loans

Loans defaulted or settled with banks lower your credibility.

e. Incomplete Credit Mix

Having only unsecured loans (like credit cards) and no secured loans affects the score balance.

How to Improve Your CIBIL Score Quickly

✅ Pay Bills On Time

Set up auto-debits or reminders to ensure timely EMI payments.

✅ Maintain a Healthy Credit Mix

Balance your unsecured and secured loans.

✅ Clear Credit Card Dues Strategically

Pay off cards with the highest interest first. Maintain utilization below 30%.

✅ Check Your CIBIL Report Regularly

Identify and dispute any inaccurate entries. You can get one free CIBIL report annually from TransUnion.

Common Mistakes to Avoid While Applying for Loan with Low CIBIL Score

Avoid applying to multiple lenders at once: This leads to multiple hard inquiries.
Don’t hide your financial issues from the lender: Be transparent and offer solid repayment plans.
Never skip reading loan terms: Especially interest rates and prepayment charges.

Benefits of Taking a Loan with Better Loan Solutions

At Better Loan Solutions, we specialize in offering high loan amounts even to borrowers with low credit scores. Here’s what makes us stand out:

Low-interest rates for eligible borrowers
Flexible EMI plans
Fast approval and disbursal
Personalized support
No hidden charges

We help customers with challenging credit backgrounds rebuild their financial lives.

Frequently Asked Questions (FAQs)

❓ What is the minimum CIBIL Score for getting a loan?

Most banks prefer a score above 700. However, with a good income and security, loans can be approved even with scores below 600.

❓ Can I get a loan if my CIBIL Score is 550?

Yes, especially with a secured loan, guarantor, or proof of income stability.

❓ How long does it take to improve my CIBIL Score?

With disciplined financial behavior, a score can improve within 3 to 6 months.

❓ Will checking my own CIBIL Score affect it?

No, soft inquiries (like checking your own score) do not affect your CIBIL Score.

Conclusion

A low CIBIL Score is not the end of your financial journey—it’s just a roadblock. By choosing the right type of loan, improving your credit behavior, and working with lenders who understand your needs, you can still get the high loan amount you’re looking for.

At Better Loan Solutions, we believe in second chances. Whether you need an urgent loan for personal needs, a home purchase, or business growth, we’re here to support you—even if your CIBIL Score isn’t perfect.