A personal loan could be helpful in case of a financial crisis or unexpected incident. The lenders often prefer salaried borrowers due to the higher level of income security and thus repayment assurance. The salaried individuals from government organisations, public sector undertakings (PSUs) and multi-national companies probably get quicker approval for a personal loan compared to others. The banks and non-banking financial companies (NBFCs) often take into account the age, income, job profile employer details and the credit score of a salaried applicant before approving a personal loan.

What is a CIBIL score?

A CIBIL score, provided by TransUnion CIBIL , is a 3-digit number ranging from 300 to 900. It reflects your creditworthiness. The score is based on your credit history and the way you have managed previous loans and credit facilities. A higher score indicates a good credit history, while a lower score suggests poor repayment behaviour.

For salaried employees, a score of 700 and above is often preferred by the lenders. But, if your score is below 600, it may raise concerns for lenders

Low CIBIL score: How to get a personal loan?

While a low CIBIL score (below 600) can make it difficult to get approved for a personal loan, it is not impossible. Many lenders provide options for borrowers with less-than-perfect credit. But they often charge higher interest rates and may set stricter repayment terms.

The good news is that if your score is low, you can still apply for a personal loan for salaried employees with the help of a few strategies.

You can also get a free credit score and a detailed credit report on the Money Control website