Introduction to Low Credit Score Loans
In 2025, low credit score loans provide a lifeline for individuals with credit scores below 650, enabling access to financing for personal or business needs. Loanpao explores options to help you secure funding despite a poor credit history.
Types of Low Credit Score Loans
Secured Personal Loans
Loans up to ₹10 lakh at 12–18% p.a., requiring collateral like property or fixed deposits.
Gold Loans
Loans up to ₹5 lakh at 10–15% p.a., using gold jewelry as collateral for quick approval.
NBFC Unsecured Loans
Loans up to ₹3 lakh at 15–24% p.a., offered by non-banking financial companies with relaxed credit requirements.
Comparison of Low Credit Loan Options
Key financing options for low credit scores in 2025:
| Loan Type | Loan Amount | Interest Rate | Tenure | Key Feature |
|---|---|---|---|---|
| Secured Personal Loans | Up to ₹10 lakh | 12–18% p.a. | 1–5 years | Requires collateral |
| Gold Loans | Up to ₹5 lakh | 10–15% p.a. | 6 months–3 years | Fast approval with gold |
| NBFC Unsecured Loans | Up to ₹3 lakh | 15–24% p.a. | 1–3 years | No collateral needed |
Note: Rates and terms vary by lender and applicant profile.
Benefits of Low Credit Score Loans
These loans offer:
- Access to funds despite poor credit history.
- Opportunity to rebuild credit with timely repayments.
- Quick disbursal for urgent needs like medical or business expenses.
- Flexible options with or without collateral.
- Support from NBFCs with lenient eligibility criteria.
Tips for Securing Low Credit Score Loans
Improve your approval chances:
- Collateral: Offer assets like gold or property to secure better terms.
- Co-applicant: Include a co-signer with good credit to boost approval.
- Income Proof: Provide stable income documents to demonstrate repayment ability.
- Smaller Loan Amounts: Apply for lower amounts to reduce lender risk.
- Lender Comparison: Use Loanpao to compare banks and NBFCs for suitable offers.
Frequently Asked Questions
Loans designed for individuals with credit scores below 650, offering financing with relaxed eligibility.
Yes, they often have higher rates (12–24% p.a.) due to increased lender risk.
Yes, NBFCs offer unsecured loans, but they may require higher interest or a co-applicant.
Make timely repayments and maintain low credit utilization to boost your score.
Loanpao connects you with lenders, provides EMI calculators, and offers eligibility guidance.