Personal Loan for CIBIL Score of 650: 6 tips to get approval from lenders

  • Published on: 29 Jan 2024
Personal Loan for CIBIL Score of 650: 6 tips to get approval from lenders

Want to get a personal loan with a CIBIL score of 650? It’s definitely doable when you:

  • Meet all the terms of eligibility set by the lender
  • Show you have a stable income 
  • Apply with an NBFC that has less stringent requirements

There is no doubt that a score of 750 or more will help you get fast and affordable financing. However, you can get a loan even with a score that is less than ideal. Read to know how. 

Tips to Get a Loan With a Credit Score of 650

NBFCs and banks offer a personal loan for a CIBIL score of 650 based on certain parameters.  

  • Provide Proof of Good Income 

Having a high income boosts your eligibility. This is because it convinces lenders of your repayment capacity. Some lenders may also require proof of stability and security to understand the scope of risks in approving your loan application. 

  • Request for NA/NH Credit Report

NA or NH in your report indicates no credit activity and no history available. Under such conditions, you can explain the reason and request the lender to consider your application as a new borrower. 

  • Apply With a Co-Borrower

This is another easy way to get funds with a 650 credit score. Loan applications that feature a co-borrower are easily approved as the other person is responsible for repayment if you can’t pay your EMIs. So, lenders have to bear a lower risk. 

If you have a low score, you can apply with your:

  • Parents
  • Spouse
  • Children
  • Relatives
  • Other co-applicants as accepted by the lender 
  • Borrow a Lower Amount

Applying with a low score makes you a high-risk applicant, as financial companies assume you may default. To offset that, you may have to say yes to reduced financing when applying with 650 CIBIL score.

  • Check the Eligibility Criteria

Thanks to fintech advancements, you can choose digital lenders if you have a 650 CIBIL score. Loan apps often have lenient requirements, which make getting funds easier. Remember to choose trusted apps to ensure the security of your data and finances. 

  • Settle for a Higher Interest Rate

Since a low score results in a higher interest rate in most cases, choose to proceed if your requirement cannot be delayed. Responsible and consistent payment of EMIs can help you build a better credit score for the future. 

Tips to Improve Your CIBIL Score

Applying for a personal loan with a 650 CIBIL score may result in higher EMIs. This is because lenders charge a higher interest rate, so it may be better to boost your score and then apply. While this only works if you don’t need funds for an emergency, take a look at the table below to get a better idea of the ideal CIBIL score. 

Credit scoreRating Chances of approval
750 – 900Very goodExtremely high
700 – 749GoodHigh
650 – 699SatisfactoryPossible
550 – 649BadLow
300 – 549Very badExtremely low

Take the following proactive steps to improve your score to have better chances of approval. 

  • Timely EMI Payment: Set up reminders or auto-pay facilities to avoid missing your EMI due dates
  • Avoid Applying Frequently: Multiple loan applications in a short duration may reflect negatively on your score
  • Periodic Checks: Regularly check your score to detect any errors and make corrections 
  • Lower Utilisation Ratio: Keep your utilisation under 30% of the provided credit limit 

With these practices, you can gradually improve your 650 CIBIL score and get easy access to funds. Remember, building your score is not something you can do overnight. To keep an eye on it, check your Credit Score for free on Fibe. If you need funds during an emergency, you can rely on Fibe to get quick and affordable Instant Cash Loan

We use alternative scoring mechanisms to measure your repayment capacity and creditworthiness. As such, even to those who are new to credit or have a low score can get access to funds. 

Moreover, we have quick approval and flexible repayment options, along with zero foreclosure charges and a 100% digital application. Download our Personal Loan App or visit our website now to get funding of up to ₹5 lakhs! 

FAQs on Personal Loan for 650 CIBIL Score

My CIBIL score is 650. Can I get a personal loan?

Yes, but you may have to repay a higher interest or settle for a lower amount. You can also apply with co-applicants or showcase a good repayment ability.

Is 650 a high CIBIL score?

Lenders consider a 650 CIBIL score to be decent for a smaller loan amount, but prefer 750 or higher for more funds. 

How to improve my CIBIL score from 650 to 750?

You can follow these tips to increase your 650 CIBIL score:

  • Don’t miss the EMI due date
  • Reduce your credit utilisation ratio
  • Periodically check your CIBIL report for errors
  • Know the factors that impact your credit score
  • Avoid frequent loan applications

How long does it take to get a credit score of 650?

If you already have a loan or credit card, it may take about 3-6 months. However, you need to be patient and consistent as building a score takes time.


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