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How to Secure a Personal Loan with a Low CIBIL Score

Have you ever asked yourself, “Can I get a personal loan if my CIBIL score is low?” You’re not alone in this. Many feel stuck and worried when their credit score isn’t up to the mark, especially when there’s an urgent need for money. 

In this blog, we’ll clear up some common misunderstandings and show you how to get the financial help you need, even if your CIBIL score isn’t perfect. We have put together a guide of options, tailored for people who are looking to get a loan with a low CIBIL score.


What is a CIBIL Score?

A CIBIL score, also known as a credit score, is a three-digit number that represents an individual’s creditworthiness. It ranges from 300 to 900, with a higher number indicating a better credit history and a lower risk for lenders. The score is calculated by Credit Information Bureau (India) Limited (CIBIL) based on the individual’s credit history, including their repayment record on loans and credit cards, the amount of credit utilized, the length of credit history, and other related factors. A good CIBIL score can make it easier to obtain loans and credit cards on favorable terms, while a low score can lead to rejections or higher interest rates.

Does that mean a CIBIL score is everything when it comes to getting a loan?” This is a common thought, but it’s not exactly true. A CIBIL score is simply a number based on your past handling of credit and loans, indicating how risky it might be for a bank to lend you money. 

But here’s some good news – while a good score can make getting a loan easier, a low one doesn’t mean you’re out of options. In fact, there are specific options available for a personal loan with a low CIBIL score. There are still ways and means to get the financial help you need. Curious? Let’s explore this further.

Why CIBIL Score Isn’t Everything 

A low CIBIL score might make you worry about getting a loan, but it’s important to know it’s not the only thing lenders look at. Yes, your CIBIL score matters, but it’s not everything. 

Lenders also look at how much money you make every month and how stable your job is. They want to know if you can pay back the loan. So, if you have a regular income and a stable job, you still have a good chance to get a loan even if your CIBIL score is low. 

And there’s another option for those with a low CIBIL score – taking a loan against mutual fund. This means if you have money invested in mutual funds, you can get a loan using those investments as a guarantee. 

What is a Loan Against Mutual Fund?  

A loan against a mutual fund means that you use your mutual fund investments as a security to borrow money from a lender. This can be a good option for those who are worried about not getting a loan because of a low CIBIL score.

FinEzzy is a platform that helps you do this easily. With FinEzzy, your mutual fund investments can help you get the loan you need even without a CIBIL score.

So, how does this work, and how do you get started? It’s simpler than you might think.

What is the Process of Getting a Loan Against Mutual Fund? 

Getting a loan against a mutual fund is easy, especially with platforms like FinEzzy. Using your mutual fund investments as security, obtaining a personal loan with low CIBIL score becomes more accessible. Here’s a simple step-by-step process on how you can secure a loan using your mutual fund investments even without CIBIL score.

Step 1: Download the FinEzzy App 

Download the FinEzzy app to have a comprehensive view of your mutual fund investments, all gathered in one easy-to-navigate space. 

Step 2: Complete the Paperless KYC 

Provide your basic information online, a hassle-free and speedy process to verify your identity and necessary details.  

Step 3: Check Your Credit Limit 

Discover how much you can borrow. The app clearly displays your credit limit based on the value of your mutual fund investments.  

Step 4: Pledge Your Mutual Fund Units 

Offer your mutual funds as security for the loan in a secure and effortless process, all facilitated within the app. 

Step 5: Get the Money in 15 Minutes Once verified, the loan amount is quickly transferred to your account in just a quarter of an hour. It’s efficient and designed for your convenience.

So, there you have it – a simple, clear, and quick way to get a loan against your mutual fund investments.

In a nutshell, obtaining a personal loan isn’t solely dependent on a high CIBIL score. With options like FinEzzy, you can easily secure a loan against your mutual fund investments. It’s a hassle-free experience designed to assist those with lower CIBIL scores, ensuring financial support is accessible when needed. Your path to a personal loan without the traditional credit score constraints is not just possible; it’s easily achievable with the right tools and information.

Frequently Asked Question (FAQs)

Absolutely, yes. While a good CIBIL score can make the process easier, having a low score doesn’t mean you are ineligible for a loan. There are alternative ways to secure a loan, such as a loan against mutual fund through your mutual fund investments.

A CIBIL score is a three-digit number that represents your creditworthiness. It’s based on your credit history, but it’s not the only factor lenders consider when you apply for a loan.

FinEzzy offers an easy-to-use platform where you can pledge your mutual fund units as collateral to get a loan. The entire process is quick, online, and doesn’t rely heavily on your CIBIL score.

It’s simple – download the FinEzzy app, complete an online KYC process, check your credit limit, pledge your mutual funds, and get your money in just 15 minutes.

Yes, it’s safe. FinEzzy ensures a secure process to pledge your mutual fund units, offering you a swift and reliable way to obtain a loan.

You can get the money in just 15 minutes after you complete the online KYC process. It’s one of the fastest ways to get a loan.

The loan amount you can get depends on the value of your mutual fund investments. FinEzzy provides a clear view of your credit limit directly through the app.

Frequently asked questions

All investments have some risk. But mutual funds try to reduce risk by investing in many different things. So, if one thing doesn’t do well, the other might make up for it.

We tailor our advice and suggestions to your needs. If wealth management is your goal, our algorithms go through millions of data points to come up with suggestions that sit perfectly with your risk appetite, existing financial goals and the prevailing market conditions. If you are interested in credit, we address the need while also ensuring you do not compromise on your broader financial goals.

Most mutual funds let you take out your money when you want. But some might have rules or charges if you take it out too soon.

To start, you can talk to a bank or a financial advisor. They can guide you on how to put your money in a mutual fund.

Yes, there might be some charges. These are for managing the fund and other services. It’s good to ask about these before you invest.

No, you don’t need a lot of money. Many mutual funds allow you to start with a small amount as low as INR 500.