Low Credit Score Loan App: Many people require loans to fulfill their financial needs. However, whether you will be able to obtain a loan largely depends on your credit history.
If you have a low Credit Score, you may find it challenging to get a loan. There can be several reasons for a low CIBIL score, such as multiple loan applications, delayed payments, and multiple rejections.
If you are facing a similar situation and have a low Credit score but require a loan, we have a solution for you. We have compiled a Low Credit Score Loan App list that offers loans even to individuals with low CIBIL scores.
Low Credit Score Loan App Review
| Interest Rate | Competitive Interest Rate starting from 14% per annum. |
| Loan Amount | ₹1000 to ₹5 lakhs |
| Tenure | 62 days to 24 months |
| Process | 100% Online (No Paperwork is required) |
| Processing Fee | 2% to 5% on the loan amount |
| Lender Type | NBFC (Non-Banking Financial Companies) |
What is the CIBIL score and how is it calculated?
CIBIL Score is a three-digit number that reflects your creditworthiness. It is given to all citizens of India based on data, by Credit Information Bureau (India) Limited.
Banks, NBFCs, and credit unions check the customer’s credit score before giving any loan or credit card. Thus, it plays an essential role in your financial life.
A score between 300 and 650 is considered Bad CIBIL Score, while a score between 651 and 750 is considered good. A score between 750 and 900 is an excellent score.
Your CIBIL score is determined by a complex algorithm that takes into account several factors.
These include the amount and type of credit you have received, whether it is secured or unsecured, and your loan and credit card repayment history, including any late payments, defaults, settlements, or write-offs.
The credit utilization ratio, which is the percentage of your available credit limit that you are using, and the number and frequency of your credit inquiries, which reflect your credit-seeking behavior, are also considered.
The length and mix of your credit history reflect how long you’ve been using credit and the diversity of your credit portfolio.
Best loan app for low credit score
In today’s world, instant loan apps have become an essential source of financial assistance. Several non-banking financial companies in India offer instant credit loan facilities to individuals even with a low Credit score. In this context, we are providing a list of NBFC low credit score loan apps that can offer you a loan.
| Application | Loan Amount | Rate of Interest |
| KreditBee | ₹1000 to ₹4 lakhs | 15% to 29.95% |
| Money View Personal Loans | ₹5000 to ₹5 lakhs | 16% per annum onwards |
| Fibe | ₹5000 to ₹5 lakhs | 15% per annum onwards |
| NIRA Finance | ₹5000 to ₹1 lakh | 24% to 36% |
| CASHe | ₹1000 to ₹4 lakhs | 24% to 30% |
| Kissht Personal Loan | Credit line up to ₹2 lakhs | 14% to 20% |
| mPokket | ₹500 to ₹1000 | 24% to 48% |
| Zype Personal Loan | Credit line up to ₹5 lakhs | 18% to 39% |
| i2iFunding Personal Loan | Loan up to ₹50,000 | 2% to 4% per month |
| Privo | Loan up to ₹5 lakhs | 3.49% to 29.99% p.a. |
| InCred | Loan up to ₹3 lakhs | 16% to 18% p.a. |
| SmartCoin | ₹4000 to ₹1 lakh | 20% to 36% |
Types of Low Credit Score Loans
Low Credit Score Loan Apps are a boon for those who can get loans to meet their financial needs despite having bad credit. Some examples of low-credit loans are given below:
Loan against property: Due to Low Credit Scores, most people face difficulty taking loans. Banks and NBFCs do not give these loans, but if a customer is ready to mortgage his property for a Personal Loan, then he can get the loan. The loan amount and interest rate depend on your property value and repayment capacity.
Gold Loan: Gold loan is a very popular and smoothly available loan. To take this loan, you have to pledge the gold you have with a bank or NBFC, and the loan is provided to you according to the current price of gold. The Gold Loan Amount is decided per gram of gold value and its purity, and you get a gold loan.
Loan against securities: It is a secured loan for which you pledge your shares, mutual funds, bonds, etc., with the bank. Most of the business people take this loan, they pledge some percentage of the shares of their company in the bank and take a loan from them. For this, a CIBIL score is not required much, and a loan is also available.
If you fail to repay the loan, the bank recovers its money by selling your shares in the market.
Eligibility Criteria for Instant loan app for low credit score
Before applying for a loan on any financial app, it is necessary that you know the eligibility criteria, which will help you understand what qualifications you should have to apply for the loan.
- The applicant must be a citizen of India.
- The age of the applicant should be between 18 to 60 years at the time of application.
- He must have a regular source of income, which he gets every month.
Documents Required for instant loan app for low credit score
To avail of an Instant loan, you need to provide the necessary documents, but due to a low credit score, some additional documents may be required, which are mentioned below.
- Pan Card
- Aadhar Card Should be linked with a Mobile Number.
- Address Proof: Any one of the documents – Passport, Aadhar Card, Voter ID Card, Driving Licence.
- Identity Proof: Any one of the documents – Passport, PAN Card, Ration Card, Aadhar Card, Voter’s ID Card, Driving Licence.
- Income Proof: Last Six months’ bank statements, Income Tax Return, Salary Slip, Balance Sheet, etc.
How to Apply for a Loan on a Low Credit Score Loan App?
If you want to apply for a loan on low credit score lending apps. You can do this by following some easy steps:
- First, you need to download the app from the Google Play Store or App Store and install it on your smartphone.
- Next, you need to create an account on the app by providing your basic information like name, phone number, email address, etc.
- You have to verify your identity using your Aadhar Card, PAN Card, or other documents.
- Next, you need to provide relevant details about your employment, income, and credit history.
- Some documents like bank statements, salary slips, or tax returns need to be uploaded to prove your income and repayment capacity.
- After giving all the information, you can apply for the loan. You can choose the loan amount and repayment tenure to suit your needs and budget. You can also view the interest rate, processing fee, and other charges applicable to your loan.
- Once you submit your loan application, the app will review it and check your eligibility and creditworthiness.
- You may get instant approval or conditional approval depending on the app’s criteria and policies.
- If your loan gets approved, the app will disburse the loan amount to your bank account within a few hours or days.
FAQs Related to Low Credit Score Loan App
Can I get a loan with a low credit score?
Yes, you can get a loan even with a low credit score. CIBIL Score is a three-digit number that reflects your creditworthiness. If your score is between 600 to 750, you can approach non-banking financial companies for a personal loan. Lenders will be cautious when such credit scores and may conduct additional credit checks before approving the loan. They may also charge you a higher interest rate.
How long does it take to improve my CIBIL score?
The time taken to improve your CIBIL score depends on different factors, such as your current score, repayment history, credit utilization ratio, and credit mix. It can generally take 4 to 12 months to improve your CIBIL score, depending on your consistency in demonstrating good credit behavior.
