Personal loan with a low CIBIL score: RBI approved apps and rates

You can get a personal loan with a low CIBIL score, but it will come from an NBFC instead of a major bank. Expect interest rates between 24% and 36% along with higher processing fees. Apps promising an instant loan without a CIBIL score are usually unlicensed and dangerous.

By Qrates research desk · 2026-11-02

What a low credit score means for your loan options

A CIBIL score below 700 makes traditional banks hesitate to approve your application. If your score is around 550, you are limited to specific NBFCs that take on higher risk. These lenders offset their risk by reducing the repayment tenure and increasing the cost of borrowing. If you are unsure of your current standing, you should check your CIBIL score free to see what the report shows.

How a low CIBIL loan works: The real cost

A low credit score changes the math on your loan completely. A borrower with a good score might get a 12% interest rate, while a low score often faces 36%. Lenders also charge upfront processing fees, which can be as high as 5% for bad credit.

Here is how a ₹50,000 loan looks over a 12-month repayment tenure for two different borrowers.

Loan detail	750 CIBIL score	550 CIBIL score
Loan amount	₹50,000	₹50,000
Interest rate	12%	36%
Processing fee	₹500 (1%)	₹2,500 (5%)
Monthly EMI	₹4,442	₹5,023
Total interest paid	₹3,309	₹10,278

What to check before you apply online

Verify the RBI registration

Always confirm the lender is an RBI registered NBFC or bank. You can use the Qrates lending apps directory to check the exact licence number, phone permissions, and complaint history of the app. This helps you avoid illegal operators. You can also learn how to check if a loan app is RBI registered to ensure you are dealing with a legitimate financial institution.

Check the processing fees and penalties

Lenders taking on high risk will charge heavy fees upfront. Read the loan agreement to find the exact processing fee percentage and the late payment charges. A missed payment will drop your score further and trigger penalty fees.

Look for a guarantor or collateral option

You can lower your interest rate by reducing the risk for the lender. Adding a guarantor with a good credit history can help get your loan approved. You can also pledge collateral like gold to secure the loan.

The danger of loan apps that promise no CIBIL check

Searching for an urgent loan with bad credit in India often leads to illegal apps. Legitimate lenders always check your credit report, even if they accept a low score. Unlicensed apps steal your contact list and use blackmail for recovery if you default. Always be aware of why loan apps ask to read your contacts and SMS as this is a major red flag for predatory behavior.

How the new weekly CIBIL reporting rule helps you

The RBI now requires lenders to update credit bureaus every week or within a fortnight (rbi.org.in). If you clear a past default, your credit report updates much faster than the old 30-day cycle. This means you can apply for a better loan sooner after paying off old debts.

FAQs

Can I get a personal loan with a 500 CIBIL score?

Getting an unsecured loan with a 500 score is rare. You will usually need to provide collateral like gold or fixed deposits to get approved.

Which RBI approved app gives loan for low CIBIL?

You can find RBI approved loan apps for low CIBIL borrowers by checking the Qrates directory. It lists the official RBI licence numbers and user complaints for every registered app.

Is it safe to use loan apps without CIBIL check?

No, apps that skip a CIBIL check are unsafe and likely unlicensed. They often steal your phone data and harass your contacts to recover money.

Low CIBIL score hone par interest rate kitna lagta hai?

Borrowers with a low CIBIL score usually face interest rates between 24% and 36%. Lenders also charge high processing fees of up to 5% of the loan amount.

The short version

A CIBIL score below 700 restricts you to NBFCs that charge higher interest rates.
You can expect interest rates up to 36% and processing fees up to 5%.
Apps offering an instant loan without a credit check are usually illegal and dangerous.
Adding a guarantor or pledging gold can help you secure a loan with a bad credit history.
The new RBI rule means your score will update within a fortnight after you clear a default.

You can check the latest figures, licence status, and complaint history for any lending app at qrates.in/apps/lending.

Sources

Disclaimer

Qrates is an information directory. It takes no commission from any company listed and does not recommend products. Figures are taken from the sources named and dated, and they change; check the company's own page before you decide. This is not investment, credit, insurance or tax advice for your situation. Borrow only from an RBI-regulated lender or its listed partner app.