March 11, 2026 · 5 mins read
Santosh Kumar
Banks rely on credit scores to determine whether a borrower will pay back a loan in a timely manner. A score near 600, on the other hand, can indicate the borrower has missed payments or otherwise had difficulty with debt in the past.
For this reason, lenders can place some restrictions. They could provide a reduced loan amount, impose a higher rate, or require more paperwork. Some banks might even ask for a guarantor or collateral prior to approving the loan. But not all lenders are alike. A few non banking financial companies like Ola Money and ZestMoney are more flexible and may approve loans based on income stability rather than just the credit score.
Think about Rajesh, a salaried employee in Pune with a monthly income of ₹40,000. But because of some missed card payments, etc., his CIBIL score plummeted to about 600.
When Rajesh applied for a personal loan from a large bank, he was declined because they required a minimum score of 700. But he subsequently tried with a non bank financial company who looked at his stable income and employment.
Lender OK’d a lower loan amount at a slightly higher rate. As time passed, Rajesh paid back the loan on a consistent basis, boosting his credit score. This example illustrates that a low score does make borrowing more difficult, but it doesn’t make it impossible.
While credit score is a significant factor, lenders typically consider a number of other elements prior to consenting to a loan.
Steady monthly revenue is among the most crucial. Borrowers with stable jobs and enough income to pay back the loan could still be approved with a medium score.
Employment stability also matters. Those who have been with an employer longer are considered more fiscally responsible.
Outstanding debts also matter. If the borrower has existing loans or credit cards with high balances, lenders would be reluctant to provide additional credit as well.
The smaller the loan amount you request, the less risk to the lender, and the greater the likelihood you’ll be approved.
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Asset-backed loans — like loans secured by a fixed deposit, gold or property — are simpler to get with a lower score.
Showing salary slips, bank statements and employment details can help put lenders mind at ease.
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If you’re applying with a co applicant who has good credit, the loan may be approved.
If you’re in the 600’s, it should be your mission to get it up before new loans. Begin by clearing all the EMIs and credit card bills on time. Payment history is the biggest factor in calculating credit scores.
Watch your credit card usage. Preferably, the utilization is under 30% of the credit limit.
Don’t apply for several loans or cards within a quick succession, as multiple credit requests can bring the score down even more.
You should also regularly monitor your credit report from TransUnion CIBIL to make sure everything is up to date.
With financial discipline, most borrowers can get their score back in a year or two.
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A 600 CIBIL score will narrow your loan choices in India, but it won’t slam the door on credit entirely. Borrowers can also still find loans via secured alternatives, smaller loan sizes, or income-sensitive lenders. By paying smart and borrowing responsibly, they can slowly build up their credit footprint and access stronger financing options down the road.)
Some banks may finance a loan with a CIBIL score as low as 600; however, this is rare. Banks typically require a score of 700 or above. For applicants who have a score below 700, it is more common for non-bank financial companies (NBFC)/digital lenders to grant loans.
The easiest loans to obtain when applying with a 600 CIBIL score are secured loans such as a gold loan, loan against your fixed deposit, or loan against your house. Some NBFCs may also be able to approve smaller-sized personal loans to applicants who have a stable income.
To quickly increase your CIBIL score, you should make all of your EMIs and credit card payments on time. It is also important to pay down all outstanding debts. Avoid applying for multiple loans simultaneously. You should regularly check your credit report for inaccuracies, as well as for potential fraud. You should develop the habit of being financially disciplined and continue to improve your CIBIL score over time.
Build and Maintain a 750+ Credit Score
