How to get urgent Personal Loans for Bad Credit score?

Published On Dec/14/2023

Financial crises can strike at the most unexpected moments in today's fast-paced world. Whether it's an unforeseen medical bill, an urgent home repair, or any sudden expense, having access to personal loans can be a lifesaver.

This article will explore effective methods to help you obtain an instant personal loan, even if your credit score is not in the best shape.

Ways to Get an Instant Personal Loan with a Low Credit Score

Correct Mistakes in Your Credit Report

Your credit report is central to your financial life; typically, the initial document lenders examine when you apply for a personal loan.

1. Obtain Your Credit Report

Request a copy of your credit report from major credit bureaus like CIBIL, Equifax, Experian, or TransUnion. You're entitled to one free report per year from each bureau. Requesting reports from multiple bureaus gives you a comprehensive view of your credit history.

2. Review Your Report Thoroughly

  • Examine personal information: Verify that your name, address, and contact information are accurate and up-to-date.

  • Confirm late payments: Verify the accuracy of any late payments, as mistakenly reported late payments can significantly impact your credit score.

  • Identify incorrect accounts: Look for accounts that don't belong to you, as identity theft or errors can result in accounts being attributed to you erroneously.

3. Dispute Inaccuracies

  • Contact the credit bureau: Reach out to the credit bureau that provided the report with the error, initiating disputes online or by mail.

  • Evidence: Clearly explain the error and provide supporting documentation, such as proof of on-time payments, bank statements, or receipts.

  • Dispute resolution process: The credit bureau must investigate your dispute within 30 days, contacting the creditor for verification.

  • Updated credit report: If errors are found, the credit bureau will update your credit report, potentially improving your credit score.

4. Follow Up

  • Periodic check-ups: Make it a habit to review your credit report annually or before significant loan or credit card applications.

  • Stay informed: Keep updated on changes in credit reporting regulations and laws that may impact your rights as a consumer.

Request Your Lender to Consider Your Case with an NA or NH in Your Credit Report

1. Understand the Significance of NA or NH Entries

Recognize the reasons: Before approaching a lender, comprehend why your credit report's 'NA' or 'NH' entries are present. They typically occur due to limited credit activity or being new to credit.

2. Write a Letter of Explanation

  • Provide clarity: When applying for a personal loan with 'NA' or 'NH' entries, craft a persuasive letter of explanation to the lender.

  • Highlight financial responsibility: Emphasize responsible financial behavior, such as timely bill payments, prudent expense management, and savings habits.

  • Offer proof of income: Include documentation showcasing your stable income source, such as salary slips, income tax returns, or bank statements.

  • Mention assets: If you possess valuable assets like a vehicle or property, mention them in your letter as collateral or assurance for the lender.

  • State your purpose: Clearly articulate why you seek the personal loan and how it will benefit your financial well-being.

3. Show Responsibility Over Time

  • Establish a bank account: Open a savings or checking account to demonstrate your ability to manage finances responsibly.

  • Timely bill payments: Ensure you promptly pay utility bills, rent, and other recurring payments, showcasing your commitment to meeting financial obligations.

  • Build relationships with local banks or credit unions: Smaller, local financial institutions may be more willing to consider your application, especially if you have a long-standing relationship with them.

4. Explore Secured Personal Loans

  • Collateral types: Secured personal loans involve providing collateral, including assets like jewellery, vehicles, or savings accounts.

  • Lower risk for lenders: Lenders find secured loans less risky due to collateral, increasing the likelihood of loan approval.

  • Potential for lower interest rates: Secured loans often come with lower rates than unsecured loans, making borrowing more affordable.

Can I Get a Personal Loan without a CIBIL Score?

CIBIL (Credit Information Bureau (India) Limited) scores significantly assess creditworthiness in India. However, it is possible to secure a personal loan even if you lack a CIBIL score or have a very low one.

Let's explore the avenues to make it happen.

1. Consider Alternative Lenders

  • Specialized lenders: Some lenders specialize in providing personal loans to individuals without CIBIL scores or those with low scores.

  • Income verification: Alternative lenders may prioritize your income and employment stability rather than relying solely on your CIBIL score. Be prepared to submit documents like salary slips, bank statements, or income tax returns.

  • Collateral-based loans: Explore secured personal loans where you provide collateral, such as jewelry, property, or a savings account, as security for the loan.

2. Build a Credit History

  • Begin with a bank account: Start building a credit history by opening a savings or checking account if you don't already have one.

  • Timely payments: Use your secured credit card responsibly by making regular, on-time payments, positively impacting your credit history.

  • Monitor progress: Regularly check your credit report to ensure that your positive payment history is being reported to the credit bureaus.

3. Find a Co-Signer or Guarantor

Co-signer's role: A co-signer agrees to share the responsibility for the loan. Their strong credit history assures the lender that the loan will be repaid.

4. Explore NBFCs and Digital Lenders

  • Digital lenders: Fintech companies and online lenders leverage technology for credit assessment, analysing alternative data sources beyond CIBIL scores.

  • NBFCs: Non-Banking Financial Companies may have more flexibility in their underwriting process, considering factors like your repayment capacity and employment history.


A low credit score should not deter you from securing an urgent personal loan when you need it most. You can access the financial assistance you require by addressing errors in your credit report, considering alternative lenders, exploring collateral or co-signer options, and demonstrating responsible financial behaviour.