How To Get A Personal Loan For Your Business With A Low CIBIL Score?

get personal loan approved business low CIBIL score


A CIBIL score is essentially a user’s credit score, and plays a major role in an individual’s personal loan eligibility. The primary concern of any lender is the risk they take on based on getting their money back. In order to ensure that a potentially borrower is capable of repaying the loan on time, one of the first things a lender will check is their CIBIL score, as it provides insight into their spending habits and their position vis-à-vis their debt: How much debt they are in and based on their history, how likely they are to clear this debt. If one has a low CIBIL score, then their likelihood of getting a personal loan and their personal loan eligibility reduces. 

A personal loan can help fund a plethora of expenses, and one can even take out a personal loan for business. Given how useful they are, there are still steps individuals could take to better their chances of getting a personal loan for business, despite a low CIBIL score 

Steps one can take to get a personal loan for their business with a low CIBIL score: 

1. Provide Proof Of Income

The reason a low CIBIL score leads to reduced personal loan eligibility is that it makes lenders hesitant in regards to an individual’s ability to repay the personal loan and keep up with EMI payments. Providing proof of income and payment slips are proof of one's ability to repay the loan, and will increase the chances of the loan being approved as it inspires confidence in the borrower’s ability to repay the loan. 

2. Reduce The Loan Amount 

It is no surprise that the amount of the loan is directly related to a lender’s interest in lending. If an individual with a low CIBIL score applies for a personal loan of a higher amount, lenders are less likely to approve the loan as they are hesitant that the individual will be able to repay the relatively higher personal loan amount. Conversely, reducing the loan amount reduces the risk lenders take on, and will lead to them potentially being more likely to approve the loan. 

3. Acquire A Guarantor 

If one has a low CIBIL score, a guarantor will put a lender’s mind at ease as they have a ‘guarantee’ that even if the borrower is unable to repay the loan, the guarantor will cover the amount as per the contract. It must be noted that it is recommended this option be applied with caution, as it puts another individual at financial risk. 

4. Correct Your Credit Report For Any Errors

There are numerous reasons for a low CIBIL score. While the previous options include ways to neutralize the effects of a low CIBIL score, this option is aimed at correcting the CIBIL score. Checking for inconsistencies in one’s credit account and smoothening them out could help an individual acquire a better CIBIL score and get a better personal loan for business. 


A personal loan for business can be a great way to kickstart or further a business venture. However, given that it is a personal loan, personal loan eligibility of the individual plays a role based on their CIBIL score. A low CIBIL score can prove to be a fork in a road, however, there are a number of steps individuals could take to secure their personal loan despite their low CIBIL score, or in order to neutralize the consequences of a lower CIBIL score.

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