Yes, you can get a small loan even with a low credit score. Many NBFCs and fintech lenders now approve loans based on your income stability and repayment ability rather than focusing solely on credit history. If you need money quickly and your CIBIL score is below 650, you still have a chance to get a small loan. You just need to understand where and how to apply for an instant money loan.

Let’s understand this in detail:

What Is a Low Credit Score?

In India, the CIBIL score ranges from 300 to 900. However, most traditional lenders consider a score above 700 as good, while a score below 650 is usually marked as fair or poor.

Banks may reject applications with scores of 500, 550, or even 600. But that doesn’t mean you’re out of options.​

Digital platforms and NBFCs often work with borrowers who have lower scores. They review factors like monthly income, employment stability, and bank transactions instead of just your credit history.​

How Do You Get a Small Loan With a Low Credit Score?

Getting a loan with a bad credit score requires a smart approach. Here’s what helps.

Apply Through NBFCs or Fintech Platforms

Traditional banks follow strict rules. NBFCs and fintech lenders are more flexible.​ They use modern credit evaluation methods. Some check your Social Loan Quotient (SLQ) score or review your financial behavior over the last six months.​

Platforms approve loans based on your current financial health, not just past mistakes.​

Show Proof of Stable Income

Submit your salary slips, bank statements, or income tax returns. These documents help lenders to understand your ability to repay the loan.

A salaried employee earning ₹25,000 per month with a score of 570 may still qualify if income flow is regular.​

This proof shows lenders you have the capacity to handle monthly EMIs.​

Apply for a Smaller Loan Amount

If your credit score is low, start with a smaller amount. Opting for ₹5,000 instead of ₹1 lakh reduces the lender’s risk.​

Consider Adding a Co-Applicant or Guarantor

A co-applicant with a good credit score strengthens your application. The lender sees less risk when someone with strong credit backs your loan.​

This works well if you have a family member or friend willing to support you.​

Use a Small Loan App for Fast Approval

Many borrowers now prefer small loan app options that offer instant approval. These apps use automated systems to approve loans quickly.​

One such option is InstaMoney, a leading small loan app used by 2.5 million users in India. Our platform provides loans up to ₹1,00,000 with a 100% digital process. You only need four documents: a selfie, PAN card, Aadhaar card, and bank statement.​

With InstaMoney, you can check your eligibility within 2 minutes and choose your loan duration based on your repayment capacity. The app is designed for individuals who need quick access to funds without lengthy paperwork or bank visits.​

How Much Can You Borrow With a Low Credit Score?

Loan amounts depend on your income and repayment strength.​

Salaried employees can typically get ₹5,000 to ₹1,00,000. Self-employed individuals receive loans based on business cash flow.​

To increase approval chances, follow below steps:

  • Apply for a lower amount first.
  • Choose a shorter repayment tenure.
  • Keep your bank transactions healthy.
  • Ensure timely salary credits.​

What Are the Benefits of Taking a Small Loan With a Low Credit Score?

Taking a small loan and repaying it on time helps rebuild your credit. It creates a positive repayment history.​

Over time, this improves your credit score. You gain access to better loan terms and higher amounts in the future.​

Small loans also help during emergencies. Whether it’s a medical bill, home repair, or urgent expense, quick access to funds can ease financial stress.​

Get Your Small Loan Approved Today With InstaMoney

InstaMoney makes it simple for borrowers with low credit scores to get instant personal loans up to ₹1,00,000 without the hassle of banks.

Download the InstaMoney app right now and complete your eligibility check in just 2 minutes. Apply, get verified, and receive your approved amount directly in your bank account. Whether it’s an emergency or planned expense, InstaMoney helps you fulfill your financial needs without the wait.