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How to Bag Personal Loans Without Guarantor for Low Credit

Lenders always seek your credit records ahead of granting you a personal loan. This is one of the major reasons why a poor credit score can be a barrier as you attempt to get a personal loan approved.

Personal loans are of immense help when you are in dire need of instant funds for purposes such as house moving expenses, credit consolidation, medical expenses, home renovation, emergency expenses, and more. 

However, securing such a loan requires undergoing multiple checks conducted by the lender as a means of examining your creditworthiness. And more often than not, the first and initial check will be that of your credit score. If you have a good credit score, i.e., 700 and above, you can get a loan sanctioned easily and at a low interest rate. However, in the case of a low credit score, it becomes difficult for the lender to trust in your ability to repay the loan within the stipulated deadline.

While it may not be as simple to get a personal loan with a poor credit score, you can still succeed in securing one with some extra effort. On that note, let’s talk about some ways to bag a personal loan without any guarantor and with a low credit score.

How to Get a Personal Loan With a Low Credit Score

Apply for a Joint Personal Loan

Applying for a joint loan with a co-applicant who has a good credit score can be a viable option to get a personal loan. The addition of an individual with a good credit report as a co-applicant brings creditworthiness and can help you get a personal loan quickly and at better terms.

A co-applicant can be any person whom you are familiar with and can trust, such as a family member. With the co-applicant’s consent, make sure to complete all the KYC (Know Your Customer) formalities and necessary paperwork to get the process moving. 

From the lender’s point of view, seeing a co-applicant with a good credit score on your personal loan application makes it easy for him/her to grant you a persona loan on a decent set of terms.

Go for a Smaller Loan Amount

Opting for small loans is a better way to secure funds when you have a low credit score. The lender sees you as a high-risk candidate if you demand a higher personal loan principal with a poor credit score. 

From the lender’s perspective, the chances of you failing to fulfil your loan repayment obligations is higher in such a situation, and he/she might even reject your application altogether. 

On the other hand, if you apply for a smaller personal loan, the lender may consider your application and grant you one on reasonable terms. This is also convenient for you as a borrower as you will easily be able to repay the low monthly instalments.

Disclose Income Evidence

Showing relevant income evidence that supports your statement of having an adequate and stable income can help the lender trust you. Disclosing evidence such as a pay hike, job security, an additional income source, and more can improve your chances of getting a loan approved. However, take note that this could give the lender an incentive to subject you to higher interest rates. 

Furthermore, despite having a poor credit score, a good and stable income can point to your ability to repay the personal loan amount and can get you a favourable loan at good terms. This also plays a vital role in securing a favourable principal amount through the loan. 

Apart from this, you can discuss your past financial hardships with your lender to assure them of your transparency. By doing this, you’re more likely to get the lender to grant you a loan, albeit on an average set of terms.  

Rectify any Issues in Your Credit Report

Sometimes, you might have a difficult time applying for a loan due to errors or discrepancies in your credit report. In the majority of cases, this occurs because the credit record is not updated with the latest data. 

Although this isn’t your fault, errors like these can lead to the undesirable situation of your loan being rejected. To avoid such issues, you check your credit report regularly for any discrepancies, and in case of finding one, resolve it with the concerned credit rating bureau.

This will improve your credit score and will make you more creditworthy for a personal loan.

Expand Your Loan Search Options

An individual opting for a personal loan must broaden his/her list of search options. This is because some financial institutions set a high credit score as their cut off for granting personal loans, whereas others may consider your loan application regardless of a lower or no credit rating, albeit with a higher interest rate. 

Furthermore, one of the best solutions to expand your loan options is to visit online lending websites. These websites provide a platform to various online lenders offering small or personal loans based on job profiles, credit scores, incomes, and more. 

The online lenders present on these platforms offer personal loan products such as home improvement loans, relocation assistance loans, credit card consolidation loans, medical loans and more. The loan applicant can connect with these online lenders and check the eligibility and best deals on different loan offers.

Consider NBFCs or Peer-to-Peer Lending Sites

Banks often conduct strict inquires for examining your credit record. They check your creditworthiness by fetching your credit reports from credit rating agencies. If your credit report isn’t up to the mark, you can consider other options. 

You can opt for a personal loan from NBFCs (Non-Banking Financial Institutions) and Peer-to-Peer lending platforms. They offer personal loans with relaxed guidelines and policies for those with poor, or no credit scores. However, they may charge a higher interest rate on loans as compared to banks. 


The measures mentioned above have been listed down, keeping in mind that the lender’s consideration of your capability to repay the loan doesn’t only depend on your credit score, but also on determinants such as job security, and your account balance.

While circumstances might be stacked against you at times, know that workarounds always exist. Also, it is rightfully advised that any person applying for a personal loan must naturally hope for the best and prepare for the worst. 

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