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Bad credit loans in India

Key takeaways

  • CIBIL is a credit score that shows how indebted you are. 
  • If you have a good credit score, you will get credit easily.
  • If you have a bad credit score, we will give you useful advice.

You've probably heard about the credit score. It's a measure of your reliability as a borrower to the bank. The better your score, the more likely you are to be approved for a loan or credit card. If your score is low, it means that you have had late payments on your credit, and this fact can affect the bank's decision when you apply for a new loan.

What is a CIBIL credit score in India?

CIBIL (Credit Information Bureau Indian Limited) is a credit information institution, working in India. CIBIL keeps a record of credit information of Indian customers who take a loan from Indian lending institution.
CIBIL aggregates the customer's loan and payment information of the loan. In addition, a credit score helps analyze the risk of a loan.
CIBIL score is three-digit numeric values in the range between ‘300 to 900'. If your CIBIL score is '1'that means, you don't have any credit history connected with CIBIL.

Why do you have a Low Credit Score?

There are many reasons which will impact your credit score. CIBIL uses several factors and different weightage to make your credit score.
CIBIL considers four factors for calculating your credit score.
 ✓Payment history

CIBIL is capturing all your EMI payments like late EMI payment, timely payment, the default of EMI, and dues. If you pay all EMI timely, your score will increase.
 ✓High credit utilization

increasing your credit amount, existing EMI, and higher credit card bill may impact your CIBIL score.
 ✓Multiple inquiries

If you enquire for a loan from a different source, continuous rejection reduces your credit score. If you have taken a loan and credit card in recent times, it shows your credit burden, negatively impacting your score.
 ✓Credit mix

If you maintain a balance between a secured loan and an unsecured loan. It will positively impact your credit score.

The reason that reduces your credit score

  •  Late payment of EMI
  •  Delays Payment of loan
  •  Default previous loan repayment
  •  Credit balance and Utilization
  •  Repayment duration
  •  New credit
  •  Credit mix

Credit score range

  • 800-900 excellent
  • 700- 800 Good
  • 600-700 Average
  • 500-600 below average
  • 300-500 Bad 

If you want your loan application not to get rejected in the future, you need to maintain your credit score above 750.

Where can you borrow with a bad CIBIL score?

A loan for bad credit is always tricky in taking a loan from any reputed lender. It is because lenders assume that your repayment habits and capabilities are not good. Therefore, there is a high risk of default by customers in such cases.
You can take a bad credit loan and be guaranteed approval through some private lender who provides loans for bad credit. The companies assume that your paying ability is not good, and maybe you will not repay on time.

You also have the option to consult with family and friends for urgent financial help in the case of bad credit.
Another option for a bad CIBIL score is to go for fast online loan companies like Robocash. An instant online loan provides you with an opportunity to take short-term, small amount loans with the minimum process.

Robocash online loans are available with a bad CIBIL score. However, Robocash has an attractive interest rate with zero physical documentation. Robocash does not depend on credit scores. The company considers some other parameters for customer creditworthiness.

Urgent loan with bad credit in Robocash

Do you need a personal loan with a bad CIBIL score? It is slightly difficult to get. Robocash does not decide your loan approval only based on credit score. You can try with Robocash and improve your credit score by repaying your loan on time. You can apply for the loan on the Robocash website ( as well as from Robocash App.
Your loan eligibility is not dependent on the CIBIL score. Robocash considers lots of other factors for deciding your creditworthiness. You have a chance to get a loan with a low credit score if you fulfil other parameters of the company.
The Robocash loan process is paperless, and you don't need to provide any hard copy of the document for physical verification. Robocash helps you to improve your credit score if you pay all the dues on time. Better credit scores always help you take a higher amount of loans in the future. In addition, it reduces the chances of rejection and negative impact on credit score.

Eligibility Criteria for Bad Credit Loans

If you have a bad credit score, you don't apply for a loan without any research and analysis. It impacts negatively on your credit score.
Before applying for a loan, keep some points in mind. 

  1. Always research that, which provides a bad credit loan that helps in finding the best company for you.
  2. Term and condition of the company and different charges.
  3. Apply for a short-term loan that increases your chance of a loan.
  4. Apply for a lower amount of loan. It helps you in easy payment of the loan on time and betterment your bad credit score.
  5. Check your eligibility before applying for a loan that adversely affects your credit score.

Robocash instant loan is the best option for you if you have a low credit score. The company does not demand any collateral and lots of documents for verification of your creditworthiness. You can apply for an instant personal loan with a minimum digital document like Pan and Adhar card.
How to get approval for a bad credit loan

Here you will see some tips keep in mind while taking a loan with a bad credit score.

Give proof that you pay the EMI

If you don't have a good credit score, you try to convince your lender that your conditions are improved. As a result, you will pay your EMI without any difficulties because your income will increase.

Provide collateral

You apply for the loan with collateral of your house/flat/land paper or any other fixed asset. It is a secured loan, the risk of default of loan is reduced. In this case, if you will not repay your loan. The lender will recover the amount through the sale of these properties.

Apply with a co-applicant

Someone in your close, who has a good credit score. That person will help in taking a loan as a guarantor. In that case, repayment liability comes on both the borrower and guarantor. You will try to pay all your EMI on time and improve your credit score during the repayment of the loan.

Close your previous open loan

If you need a personal loan with a bad CIBIL score. First, close all your previous loan and credit card bills and get a chance to take loans for bad credit with no guarantor. Otherwise, you will get a loan with a guarantor and collateral.

If these tips don't work for you, consider borrowing somewhere else

Instant loan companies and NBFC

Lots of new Fintech companies are available in the market. The company provides an urgent loan with bad credit in India.
Some fintech companies provide personal loans for bad credit. Some companies also give you an option to apply for a personal loan without CIBIL and income proof and a personal loan for a CIBIL score of 550. In that case, companies adopt other factors for evaluating your creditworthiness. If you fulfil the all eligibility factor of the company, you got a chance of getting an instant personal loan. The company also provides payday loans for bad credit and installment loans for bad credit. You can also able to apply for bad credit loans no guarantor.
Payday loans are short term loans you took for a short time and you repay the loan when you got a salary or wages. An instalment loan is a repayment in the form of EMI.
This type of loan is small in amount and for a short period. This type of loan helps you in improving your credit score. These companies also provide business loans for bad credit scores for the short term. In addition, they offer short-term small amount loans for bad credit because smaller loan repayment is easy for the borrower.

P2P Lending

P2P lending websites offer loans without CIBIL scores and personal loans with a low CIBIL score. P2P loan is charged a higher rate of interest because they provide you with a bad credit loan.

Loan in Robocash

If you do not want to take your valuable assets at risk as collateral, find out some other option for your urgent loan with a low CIBIL score.
You have a better opportunity to take a small short-term loan from Robocash without any collateral. Robocash provides unsecured Instant personal loans with bad credit in India. However, suppose you take an urgent loan from Robocash. Then, you get a chance to improve your credit score by paying repayment on time. A timely repayment loan is always the best way to improve your credit score. CIBIL gives the highest weightage to the timely payment of the loan. 

Tips before applying for a Bad credit loan

If you need money and you have a bad credit score. You shouldn't apply for a loan from any bank. In this case, your loan application will be rejected by the company. It decreases your credit score, your chances of getting a loan also decrease. In some cases, if your loan application is accepted, then the company may charge a higher rate of interest and processing fee.
You need to apply from an online instant company for the loan where you get a chance of getting a loan without rejection and low chances of rejection. Before taking a loan, please see the company different fees and penalties.
Keep some points in before taking Bad credit loan and research about it:

  1. Company is Legal
  2. Rate of interest
  3. Processing fee
  4. Onboarding charge
  5. Penalties and fines
  6. convenience fee
  7. Late payment charge
  8. Document collection charge
  9. Credit reassessment fee
  10. Agreement charge

Robocash does not charge any type of convenience fee, document collection fee, credit reassessment fee and agreement charge. Before taking a loan, you must find out how much you will pay against your loan amount.


CIBIL is a financial credit score that shows your borrowing and repayment ability of any loan. If you have a credit score, you get a loan at an attractive rate of Interest. On the other hand, if you have a bad credit score, find out the best option for a bad credit loan in India.
Instant personal loan companies provide you with an option to take a small short-term loan and improve your credit score. However, before getting a loan, you should inquire about the company and their rate of interest and other charges.


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