The exhaustive list of documents required to apply for an instant loan for a low CIBIL score


Any person could require financial assistance of some kind from travel plans to accidents, from home renovation to education. In these instances, acquiring a personal loan will help you cope with your financial situation.

Taking a personal loan means acquiring funds without providing collateral. Banks and financial organizations offer personal loans on the basis of individual CIBIL score, which determines the eligibility.

A CIBIL score is a three-digit numerical code ranging from 300 to 900. The score is produced from the calculations of financial transactions of the individual within the last six months. A high CIBIL score would mean that the individual has been repaying loan interests without discontinuation or missing deadlines.

The score is generated by credit agency CIBIL which is authorized by the Reserve Bank of India. Algorithms calculating records of past payments, monthly income, equities, and investments are tracked for assessing the individual’s credit score.

List of documents required for an instant loan without CIBIL

  • A copy of Permanent Residence certificate or Address proof
  • A copy of the Driving license
  • A copy of the Voter Identity card
  • Bank statement showing transactions from the last six months
  • A copy of the PAN card
  • Last month’s Electricity bill
  • Salary slip of last three months
  • Must be a minimum age of 21 years
  • A minimum monthly salary of Rs.15,000
  • Three passport size photo

Points that are taken into consideration by the bank before approving a loan –

  • CIBIL score- The most important factor in getting a loan approved is a good CIBIL score. A good score indicates positive credit health and lenders generally approve these loans
  • Status of Employment- A steady income is expected by the bank apart from a good CIBIL score. Banks typically have a list of companies categorized with interest rates. A reputed company will have lower charges of interest on loans
  • Details of Account- Any legal cases pending or completed, is thoroughly inspected by the lender. Pending legal cases will result in the rejection of loan approval
  • History of Payment- Any unresolved payment issues will project a negative impact on the overall report. Late credit card payments and penalties will affect the grant of loans
  • Income and EMI ratio- Loan approval chances will decrease if there are any outstanding loans in your account, also if the total monthly EMI being paid is more than 50% of the salary chances of loan approval is less

Benefits of a low CIBIL loan-

  • Get competitive rates of interest
  • Student loans for up to Rs 2lakh
  • Maximum loan tenure of 3 years
  • Loan processing fee of 3% of the total amount
  • Annual interest rates ranging from 12-30 percent
  • Cheap and reliable EMI rates

If you are unable to acquire a personal loan, you should consider a personal loan against collateral, a secured loan against property or asset will be easier to apply.

A family member who has a good credit score could also help you in acquiring a loan by acting as a guarantor and assuring the lenders that you will be paying the installments regularly.

Factors that lower down CIBIL score-

  • Multiple EMI’s for loan repayment
  • Depletion of credit limits
  • Pending and missed credit card payments
  • Excessive credit card request

A score of less than 750 is determined as a low CIBIL score, and banks typically do not allow personal loans for credit scores lower than 750, even if they approve the loan the monthly interest rates get higher.