Low Cibil Score Loan: 21 Low Credit Score Loan Apps 2023

Having a low CIBIL score can make it difficult to obtain a loan. A low score indicates that the borrower has a history of not making timely payments, which makes lenders hesitant to lend to them. However, there are still some options available to borrowers with a low CIBIL score.

There are several apps available that offer immediate loans for people with a low CIBIL score. Here are some popular options

1. Indiagold:

Indiagold is an online doorstep gold loan provider app with the lowest interest rate of just 0.77% per month along with 100% insurance on your Gold jewellery. You get the amount just within 30* minutes of the loan approval process directly into your bank account. Download the app now Indiagold on Playstore Indiagold on Appstore

Here are some reasons why a gold loan might be a better option than a personal loan:

Lower interest rates: Gold loans typically have lower interest rates compared to personal loans because they are secured loans. This means that the borrower pledges their gold as collateral, which reduces the lender's risk and allows them to offer lower interest rates

Easier eligibility criteria: Gold loans are easier to obtain as the eligibility criteria are simpler. Since the loan is secured against gold, the lender is more likely to approve the loan even if the borrower has a low credit score or a history of defaulting on loans

Faster disbursal: Gold loans are also disbursed faster than personal loans as the lender only needs to verify the value of the gold being pledged. This makes it an ideal option for those who need funds quickly

Flexibility in repayment: Gold loans offer more flexibility in repayment as the borrower can choose to repay the loan in small amounts over a longer period. Additionally, they can choose to make prepayments or foreclose the loan without any penalty charges

Lower risk of default: Since the loan is secured against gold, the risk of default is lower as the lender can sell the gold in case of non-payment. This reduces the risk for the lender and makes it easier for them to recover the loan amount.

2. Money View:

Money View is an app-based lender that offers loans ranging from Rs. 10,000 to Rs. 5 lakh. They require a minimum CIBIL score of 650 and offer instant approval and disbursement of funds.

3. EarlySalary:

EarlySalary is another app-based lender that offers instant loans to salaried individuals. They offer loans ranging from Rs. 5,000 to Rs. 5 lakh and require a minimum CIBIL score of 575.

4. CASHe:

CASHe is a digital lending platform that offers loans ranging from Rs. 10,000 to Rs. 2 lakh. They require a minimum CIBIL score of 600 and offer instant approval and disbursement of funds

5. FlexSalary:

FlexSalary is a digital lending platform that offers loans ranging from Rs. 4,000 to Rs. 2 lakh. They require a minimum CIBIL score of 575 and offer instant approval and disbursement of funds.

6. KreditBee:

KreditBee is a popular digital lending platform that offers loans ranging from Rs. 1,000 to Rs. 2 lakh. They require a minimum CIBIL score of 600 and offer instant approval and disbursement of funds.

7. MoneyTap:

MoneyTap is a digital lending platform that offers loans ranging from Rs. 3,000 to Rs. 5 lakh. They require a minimum CIBIL score of 600 and offer instant approval and disbursement of funds.

8. NIRA:

NIRA is a digital lending platform that offers loans ranging from Rs. 5,000 to Rs. 1 lakh. They require a minimum CIBIL score of 681 and offer instant approval and disbursement of funds.

9. PaySense:

PaySense is a digital lending platform that offers loans ranging from Rs. 5,000 to Rs. 5 lakh. They require a minimum CIBIL score of 650 and offer instant approval and disbursement of funds.

10. StashFin:

StashFin is a digital lending platform that offers loans ranging from Rs. 500 to Rs. 5 lakh. They require a minimum CIBIL score of 550 and offer instant approval and disbursement of funds.

11. Rupeeredee:

Rupeeredee is a digital lending platform that offers loans ranging from Rs. 5,000 to Rs. 5 lakh. They require a minimum CIBIL score of 550 and offer instant approval and disbursement of funds.

12. LoanTap:

LoanTap is a digital lending platform that offers loans ranging from Rs. 50,000 to Rs. 10 lakh. They require a minimum CIBIL score of 600 and offer instant approval and disbursement of funds.

13. Money in Minutes:

Money in Minutes is a digital lending platform that offers loans ranging from Rs. 1,000 to Rs. 50,000. They require a minimum CIBIL score of 500 and offer instant approval and disbursement of funds.

14. AnyTimeLoan:

AnyTimeLoan is a digital lending platform that offers loans ranging from Rs. 1,000 to Rs. 5 lakh. They require a minimum CIBIL score of 600 and offer instant approval and disbursement of funds.

15. Home Credit:

Home Credit is a digital lending platform that offers loans ranging from Rs. 10,000 to Rs. 50,000. They require a minimum CIBIL score of 650 and offer instant approval and disbursement of funds.

16. MoneyOnClick:

MoneyOnClick is a digital lending platform that offers loans ranging from Rs. 3,000 to Rs. 1 lakh. They require a minimum CIBIL score of 650 and offer instant approval and disbursement of funds.

17. Finomena:

Finomena is a digital lending platform that offers loans ranging from Rs. 5,000 to Rs. 5 lakh. They require a minimum CIBIL score of 600 and offer instant approval and disbursement of funds.

18. BuddyLoan:

BuddyLoan is a digital lending platform that offers loans ranging from Rs. 10,000 to Rs. 15 lakh. They require a minimum CIBIL score of 600 and offer instant approval and disbursement of funds.

19. LoanAdda:

LoanAdda is a digital lending platform that offers loans ranging from Rs. 10,000 to Rs. 10 lakh. They require a minimum CIBIL score of 600 and offer instant approval and disbursement of funds.

20. Qbera:

Qbera is a digital lending platform that offers loans ranging from Rs. 25,000 to Rs. 15 lakh. They require a minimum CIBIL score of 575 and offer instant approval and disbursement of funds.

21. LoanFront:

LoanFront is a digital lending platform that offers loans ranging from Rs. 50,000 to Rs. 10 lakh. They require a minimum CIBIL score of 600 and offer instant approval and disbursement of funds.

It's important to note that these lenders typically charge higher interest rates compared to traditional lenders, so it's important to read the terms and conditions carefully before applying for a personal loan without cibil. Additionally, borrowing from multiple lenders can negatively impact your credit score, so it's important to borrow only what you need and can repay on time

What is a Cibil score?

In today's world, credit plays a vital role in our financial lives. Whether it's buying a house, a car, or even applying for a credit card, a good credit score can make all the difference. This is where CIBIL scores come into play. A CIBIL score is a 3-digit number that summarizes a person's credit history and is used by lenders to evaluate the creditworthiness of an individual.

CIBIL (Credit Information Bureau (India) Limited) is India's first credit information company, founded in 2000, with the objective of providing credit information reports (CIRs) to lenders. CIBIL collects credit information from various banks and financial institutions and creates credit reports based on the data. The credit reports contain an individual's credit history, including past and current loans, credit cards, and other forms of credit.

A CIBIL score, also known as a credit score, is a numerical representation of an individual's creditworthiness. The score ranges from 300 to 900, with 900 being the highest possible score. A higher score indicates a better credit history and a lower risk of defaulting on a loan, whereas a lower score indicates a higher risk of defaulting on a loan.

CIBIL scores are calculated based on several factors, including payment history, credit utilization, length of credit history, credit mix, and recent credit inquiries. Payment history is the most crucial factor and accounts for 35% of the score. It includes details about past and current loans and credit card payments and whether they were paid on time. Credit utilization, which accounts for 30% of the score, is the amount of credit used in relation to the total credit available. A high credit utilization ratio can indicate a higher risk of defaulting on a loan. Length of credit history accounts for 15% of the score and reflects how long a person has had credit accounts. Credit mix, which accounts for 10% of the score, is a mix of different types of credit, such as secured and unsecured loans. Finally, recent credit inquiries, which account for 10% of the score, reflect how often a person has applied for credit recently.

A good CIBIL score can have many benefits. Firstly, it can increase the chances of getting approved for a loan or credit card. Lenders typically prefer to lend to individuals with a higher credit score as it indicates a lower risk of defaulting on a loan. A good CIBIL score can also lead to better interest rates and repayment terms. Lenders may offer lower interest rates and more favorable repayment terms to individuals with higher credit scores. A good credit score can also help in negotiating better terms for loans and credit cards.

On the other hand, a low CIBIL score can have adverse effects on an individual's financial life. It can lead to loan and credit card application rejections, higher interest rates, and unfavourable repayment terms. A low credit score can also result in difficulties in obtaining a rental agreement, insurance, or a job.

Improving one's CIBIL score can take time, but there are several ways to do so. Firstly, paying bills and loan EMIs on time can have a significant impact on the credit score. Secondly, reducing credit card utilisation and maintaining a low credit balance can improve the score. Thirdly, limiting the number of credit inquiries and not applying for credit frequently can improve the score. Finally, monitoring one's credit report regularly and disputing any errors can also help in improving the score.

How to Improve your credit score?

We will discuss some effective ways to improve your credit score.

Pay bills on time: One of the most important factors that impact your credit score is your payment history. Late payments or missed payments can have a negative impact on your credit score. Therefore, it's crucial to pay your bills on time, including credit card bills, loan EMIs, and utility bills.

Reduce credit utilisation: Credit utilisation is the ratio of your credit card balances to your credit limits. A high credit utilisation ratio can negatively impact your credit score. To improve your credit score, try to keep your credit utilisation ratio below 30%. If you have multiple credit cards, try to distribute your spending across them to keep the utilisation ratio low.

Increase credit limit: Another way to improve your credit utilisation ratio is to increase your credit limit. You can request a credit limit increase from your credit card issuer. However, it's important to use the additional credit responsibly and not overspend.

Keep old credit accounts open: The length of your credit history is another important factor that affects your credit score. Therefore, it's a good idea to keep your old credit accounts open, even if you're not using them actively. This will help you maintain a longer credit history, which can have a positive impact on your credit score.

Diversify credit mix: Having a mix of different types of credit, such as secured loans, unsecured loans, and credit cards, can also improve your credit score. Lenders like to see a diverse credit mix as it indicates responsible credit behaviour. However, it's important to only take on credit that you can manage and repay on time.

Monitor credit report: It's important to monitor your credit report regularly to ensure that all the information is accurate. Errors in your credit report can negatively impact your credit score. You can get a free credit report once a year from credit bureaus such as CIBIL, Experian, and Equifax.

Dispute errors: If you find any errors in your credit report, you can dispute them with the credit bureau. The credit bureau will investigate the error and correct it if necessary. This can help improve your credit score if the error was negatively impacting it. Don't apply for credit frequently: Applying for credit frequently can negatively impact your credit score. Every time you apply for credit, it results in a hard inquiry on your credit report, which can lower your credit score. Therefore, it's important to only apply for credit when you need it.

In conclusion, improving your credit score takes time and effort. However, by following these tips, you can improve your credit score and maintain a healthy credit history. Remember to pay your bills on time, reduce credit utilisation, keep old credit accounts open, diversify your credit mix, monitor your credit report, dispute errors, and avoid applying for credit frequently.

Importance of a Good Cibil Score

Helps in getting loans A good CIBIL score is essential for obtaining loans and credit cards. Lenders use the credit score to evaluate the risk associated with lending money to a borrower. A high credit score indicates that the borrower is likely to repay the loan on time, and as a result, the lender may be more willing to offer a loan at a lower interest rate and with more favorable repayment terms. On the other hand, a low credit score indicates that the borrower is a higher risk and may result in loan applications being rejected.

Lower interest rates: A good CIBIL score can also help in getting a lower interest rate on loans and credit cards. Lenders are more likely to offer lower interest rates to borrowers with high credit scores, as they are considered less risky. On the other hand, borrowers with low credit scores may be charged higher interest rates, as they are considered more risky. A lower interest rate can result in lower monthly payments and a shorter repayment period, which can be beneficial for the borrower.

Better loan terms A high CIBIL score can also help in obtaining better loan terms, such as longer repayment periods and higher loan amounts. Lenders are more likely to offer better loan terms to borrowers with high credit scores, as they are considered less risky. This can be beneficial for borrowers who need access to more significant amounts of credit.

Faster loan approval A good CIBIL score can also result in faster loan approval. Lenders typically evaluate loan applications based on the credit score, and a high credit score indicates that the borrower is likely to repay the loan on time. As a result, lenders may be more willing to approve the loan application quickly. This can be essential for borrowers who need access to credit quickly. Improved chances of getting a job In some cases, a good CIBIL score may also be important for obtaining a job. Employers may evaluate the credit score of job applicants, particularly for roles that involve financial responsibilities. A high credit score indicates that the applicant is responsible with their finances, which can be an important factor for employers. This is particularly relevant for jobs in the financial industry, where employees are entrusted with managing large sums of money.

Higher credit card limits A good CIBIL score can also result in higher credit card limits. Credit card companies are more likely to offer higher credit limits to borrowers with high credit scores, as they are considered less risky. This can be beneficial for borrowers who need access to more credit. However, it is essential to use credit cards responsibly and avoid overspending, as this can negatively impact the credit score.

Better negotiation power A high CIBIL score can also give borrowers better negotiation power when dealing with lenders. Borrowers with high credit scores may be able to negotiate better loan terms, such as lower interest rates and longer repayment periods. This can result in lower monthly payments and a shorter repayment period, which can be beneficial for the borrower.

How to apply for Personal Loans on the above mentioned apps?

To apply for a personal loan on the above-mentioned personal loan apps, follow these general steps:

Download the app: Download the app from the app store on your phone.

Register: Register your account by providing your name, contact details, and other necessary information.

Enter loan details: Enter the amount you need, the loan tenure, and the purpose of the loan.

Provide documents: Upload the necessary documents, such as identity proof, address proof, income proof, and bank statements.

Submit the application: After completing the above steps, submit the loan application. The lender will review your application and verify your documents.

Approval and Disbursement: If your application is approved, the lender will disburse the loan amount to your bank account. It is important to note that the exact process may vary slightly depending on the app you are using. Some apps may require additional documentation or have different approval criteria. Therefore, it is important to read the app's terms and conditions carefully before applying for a loan.

Benefits of Low Cibil Score apps

Low CIBIL score app benefits can be a lifesaver for individuals who are struggling to obtain credit due to a poor credit score. A low CIBIL score indicates that a person has a poor credit history and may be considered a high-risk borrower by lenders. This makes it difficult for them to obtain credit from traditional financial institutions such as banks and credit unions. However, low CIBIL score apps offer an alternative for these individuals by providing quick and easy access to credit. In this blog, we will discuss some of the benefits of low CIBIL score apps.

Easy application process: One of the biggest advantages of low CIBIL score apps is the easy application process. These apps allow individuals to apply for a loan from the comfort of their own homes. All they need to do is download the app, register, and apply for the loan. The application process is simple and can be completed in a matter of minutes.

Quick loan disbursal: Low CIBIL score apps offer quick loan disbursal. Once the loan application is approved, the loan amount is disbursed directly to the borrower's bank account within a few hours or days. This is particularly beneficial for individuals who need funds urgently and cannot wait for weeks or months to obtain credit from traditional financial institutions.

No collateral required: Another advantage of low CIBIL score apps is that they do not require collateral. This means that individuals can obtain a loan without pledging any assets as security. This is particularly beneficial for individuals who do not own any assets or do not want to risk losing their assets in case of default.

Flexibility in loan amount: Low CIBIL score apps offer flexibility in loan amount. Individuals can apply for a loan ranging from a few thousand rupees to lakhs of rupees depending on their requirement. This is particularly beneficial for individuals who need a small amount of credit to meet their immediate financial needs.

No restriction on end-use: Low CIBIL score apps do not impose any restriction on the end-use of the loan amount. Individuals can use the loan amount for any purpose such as home renovation, medical expenses, education expenses, or even to fund a holiday. This makes it a versatile credit option for individuals who require funds for various purposes.

Improves credit score: Repaying the loan on time can improve an individual's credit score. This is particularly beneficial for individuals with a low credit score as it can help them build a positive credit history. Many low CIBIL score apps report loan repayment information to credit bureaus, which can help individuals improve their credit score over time.

In conclusion, low CIBIL score apps offer numerous benefits for individuals who are struggling to obtain credit due to a poor credit score. These apps offer a quick and easy way to obtain credit without the need for collateral or a good credit history.

Gold Loans Vs Low Cibil Score Loans

Gold loans and low CIBIL score loans are two different types of loans that are designed to cater to different borrowing needs. Let's compare the two types of loans to understand their differences and similarities.

Eligibility Criteria

Gold loans: To obtain a gold loan, the borrower must have gold jewelry or coins as collateral. The eligibility criteria for gold loans are relatively straightforward, as the loan amount is determined by the value of the gold provided as collateral.

Low CIBIL score loans: Low CIBIL score loans, on the other hand, are designed for individuals who have a low credit score or no credit history. The eligibility criteria for these loans vary from lender to lender, but they typically do not require any collateral or a high credit score. However, these loans often come with higher interest rates and fees.

Loan Amount Gold loans: The loan amount for gold loans is determined by the value of the gold provided as collateral. The loan amount can range from a few thousand rupees to lakhs of rupees, depending on the value of the gold.

Low CIBIL score loans: The loan amount for low CIBIL score loans is typically lower compared to gold loans. The loan amount can range from a few thousand rupees to a few lakhs of rupees, depending on the lender and the borrower's creditworthiness.

Interest Rates and Fees Gold loans: The interest rates for gold loans are relatively low compared to other types of loans as they are secured by collateral. The fees for gold loans may include processing fees, documentation fees, and appraisal fees.

Low CIBIL score loans: The interest rates for low CIBIL score loans are higher compared to gold loans due to the higher risk associated with lending to borrowers with a low credit score. The fees for low CIBIL score loans may include processing fees, prepayment fees, and late payment fees.

Repayment Terms Gold loans: The repayment terms for gold loans are typically flexible, with a loan tenure of up to 24 months. The borrower can choose to repay the loan in instalments or as a lump sum at the end of the loan tenure.

Low CIBIL score loans: The repayment terms for low CIBIL score loans vary from lender to lender. The loan tenure can range from a few months to a few years, depending on the lender and the loan amount. The borrower must repay the loan in instalments, as per the loan agreement.

Impact on Credit Score Gold loans: Repaying a gold loan on time does not have a significant impact on the borrower's credit score. However, defaulting on a gold loan can result in the lender seizing the collateral, which can negatively impact the borrower's credit score.

Low CIBIL score loans: Repaying a low CIBIL score loan on time can have a positive impact on the borrower's credit score as it helps build a positive credit history. However, defaulting on a low CIBIL score loan can have a negative impact on the credit score.

In conclusion, gold loans and low CIBIL score loans cater to different borrowing needs. Gold loans are secured loans that require collateral, while low CIBIL score loans are unsecured loans that cater to borrowers with a low credit score. While gold loans offer lower interest rates and more flexible repayment terms, low CIBIL score loans offer more accessible credit options for individuals with poor credit histories. Borrowers should carefully consider their borrowing needs and repayment capabilities before choosing between gold loans and low CIBIL score loans.