How to Get Urgent Loans With Bad Credit In India?

urgent loan with bad credit in india

Imagine you’re navigating your monthly expenses as planned, and suddenly, an unexpected financial emergency comes up. You consider applying for a personal loan to get some cash as the approval process is convenient and quick.

But then you realize you have a bad credit score because of previous loans. You need some cash urgently but don’t know if there are possible ways to apply for personal loans with a bad credit score.

Don’t worry! In this blog, we discuss why credit score is important and some possible options for getting urgent loans with bad credit in India.

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What Is A Credit Score & Why Is It Important?

Credit score, a three-digit number that ranges between 300-900, indicates the creditworthiness of borrowers. The Credit Bureaus determine the credit score based on various factors such as the length of credit history, type of credits, repayment records, and new credit inquiries.

Simply put, it acts like a report card of your financial activities, and lenders verify your credit score to approve and reject loans.

Credit Score RangeWhat does it mean? 

For credit scores above 650, banks and lenders offer personal loans with low interest rates and flexible repayment tenure as they are low-risk borrowers. Lenders consider a credit score below 650 bad and don’t approve loans in these cases.

Also, Read: How to Get Loan Without a CIBIL Score?


Understanding How Credit Score Works?

To comprehend how credit score actually works and impacts you, read the following points:

  1. Influence on Financial Opportunities: A credit score is crucial as it greatly influences your access to financial products.
  2. Role in Credit Approval: It is a key factor that lenders consider when deciding whether to extend credit offers to you.
  3. Impact of High Credit Score: With a higher credit score, you are more likely to secure loan approvals from lenders.
  4. Consequences of Low Scores: A lower credit score can lead to frequent rejections of loan applications.
  5. Benefits of Higher Scores: Possessing a higher credit score often results in more favorable interest rates, which can lead to significant savings over time.

Moving forward, let us understand what are the factors that influence your credit score.

What Are The Factors That Lower Credit Score?

1.Late or Missed Payments:

  • Payment history is the most significant factor, making up 35% of your FICO score.
  • Includes payments on credit cards, retail accounts, installment loans, and mortgages.
  • Adverse public records like liens, foreclosures, and bankruptcies also impact this score.

2. High Credit Utilisation:

  • This factor constitutes 30% of your FICO score.
  • Measures the amount owed as a percentage of credit available.
  • High utilization indicates potential overextension and repayment difficulties.

3. Thin or No Credit History:

  • Accounts for 15% of your FICO score.
  • Shorter credit histories generally result in lower scores.
  • Factors include the age of your accounts and how recently they have been used.

4. Frequent Credit Inquiries:

  • Makes up 10% of the FICO score.
  • Includes counts of recent credit inquiries and newly opened accounts.
  • Excessive inquiries suggest frequent attempts to obtain new credit, which can be a risk indicator.

5. Limited Types of Credit:

  • Also contributes to 10% of the FICO score.
  • Having a mix of different types of credit (e.g., credit cards, auto loans, mortgages) is beneficial.
  • A limited variety, such as only using credit cards, can negatively impact your score.

Calculate Your Personal Loan EMI 

Biggest Challenges Of Having A Bad Credit Score

Here are Some Challenges you Might Face when Applying for Loans with a Bad Credit Score:

1. Limited Loan Options

Banks and financial institutions consider applicants with bad credit scores as high-risk borrowers. They don’t approve loans to these people as in case of loan defaults, these institutions would face potential losses. Hence, people with poor credit scores have fewer chances to access credit facilities during a financial crisis.

2. Higher Interest Rates and Shorter Tenure

Even when lenders approve loans with a bad credit score, they offer only very high interest rates and shorter tenure. High interest rates result in high monthly installments, and borrowers might struggle to manage both EMI and regular expenses such as food, rent, and groceries.

3. Lengthy Approval Process

Banks don’t readily offer loans to people with bad credit scores. Since the lengthy loan approval processes can ultimately lead to rejections from financial institutions, you may not be able to handle the financial emergency on time.

Urgent Loan Options For Applicants With Bad Credit

Here are nine guaranteed ways to get urgent loans even when your credit score is bad:

1. Choose Online Lenders

Don’t just rely on banks to apply for instant personal loans with a bad credit score. Banks expect a decent credit score from borrowers, and they might reject your application.

Look for other options like NBFCs and choose reliable online lenders. These digital lenders offer loans even to borrowers with bad credit scores. The interest rate may be high, but the loan approval process is convenient and quick, enabling you to address the financial emergency promptly.

If you urgently need money, apply for a personal loan using Credmudra. Credmudra is an online lending marketplace where you need to submit your loan application, and we’ll match you with a suitable lender. Get approved in less than three minutes and receive the loan amount in 24 hours.

2. Secured Loans

You can apply for secured or collateral loans with a bad credit score. In secured loans, you pledge assets such as gold as security to the lenders.

Lenders don’t consider credit scores in secured loans as they can sell the asset in case of loan defaults. This reduces lenders’ risk, thus allowing even borrowers with bad credit scores access to money.

3. Asking Friends and Family

Reaching out to your family members and friends is the easiest way to get urgent loans with bad credit in India. These people can understand your financial emergency better than financial institutions.

You have higher chances of getting urgent cash, especially with lower interest rates and customized repayment tenure. Create an agreement stating the loan amount, interest rate, and repayment tenure to avoid any problems in the future.

4. Add a Co-Applicant

If family members or friends can’t offer urgent loans at the time of need, ask them if they can help as a co-applicant and apply for a personal loan. Lenders will verify the co-applicants credit score, income, and debt-to-income ratio and then approve personal loans.

5. Opt for Small Cash Loans

If you’re in urgent need, apply for small cash loans from online lenders and get approved instantly. You can even apply for a 1000/- rupees urgent loan. Lenders are more likely to approve small cash loans with a bad credit score than larger amounts as borrowers can repay the EMI amount in a few months.

6. Leverage the Hike in your Salary

Did you recently receive a salary hike at work, or do you have some additional sources of income? Submit your pay slips and explain to the lender that you can manage the EMI efficiently now with your income. Chances are high that the lender might approve the personal loan but expect higher interest rates.

7. Credit Card Cash Advance

Use your credit card and get a cash advance against your card’s credit line. But this has some disadvantages, like additional charges and interest rates higher than what it would be for normal credit purchases. Try other chances and keep this as your last option to get urgent cash.

8. Peer-to-Peer Lending Sites

The peer-to-peer lending platform helps borrowers to borrow money from others directly without the involvement of a middleman. Borrowers create a profile, apply for loans, and lenders verify and sanction loans based on their creditworthiness.

9. Review your Credit Report

Download your credit report and review it carefully. Some people have bad credit scores because of incorrect data in their credit reports. Look for errors in payment dates, current balance, and credit limit. Rectify these errors and then apply for personal loans to get instant cash.

Though getting urgent loans with bad credit is possible, it has challenges like high interest rates and short tenure. The best way? Work on your credit score, improve it by paying your previous loans, and maintain the score to avoid difficulties while opting for future loans.

Also, Read: NBFC Loans Without CIBIL Score: Your Complete Guide


Eligibility Criteria For Bad Credit Loans

Check the eligibility criteria for bad credit loans below.

  • Age: Your age must be between 21-65 years
  • Citizenship: Indian
  • Income: Lenders expect a minimum salary of Rs.15000
  • Identity Proof: Aadhaar card, PAN card, passport, driver’s license
  • Address Proof: Aadhaar card, utility bills and passport

Features And Benefits Of Urgent Loans With Bad Credit

Some of the benefits of applying for urgent loans with a bad credit score:

1. Online Application

Tired of compromising your schedule and visiting banks in person to apply for personal loans? You can choose a complete digital process and apply for urgent loans online.

2. Minimum Documentation

Online lenders approve urgent loans with minimum documents such as your Aadhaar and PAN card. Along with this, you need to submit payslips and bank statements for the past six months.

3. Flexible Loan Amount

Apply for as less as 1000 rupees loan to a maximum of 20 lakh rupees. Choose the loan amount according to your financial requirement and repayment capacity.

4. Affordable Interest Rates

Get affordable interest rates starting from as low as 13.5%. However, the interest rate varies based on factors such as income, credit score and debt-to-income ratio.

5. Instant Disbursal

Most online lenders approve loans in less than 3 minutes and offer same-day disbursal. You’ll receive the loan amount to your bank account within 24 hours allowing you to address the financial need promptly.

6. Flexible Repayment Tenure

Worried if you can afford the monthly EMI and manage other expenses as planned? Choose the repayment tenure and monthly installments flexibly based on regular expenses such as accommodation, food and groceries.

Also, Read: 8 Best Ways to Improve Your CIBIL Score Quickly

How To Apply For Urgent Loans With A Bad Credit Score in India?

Here’s a three-step process you can follow to apply for personal loans with a bad credit score:

1. Look for Reliable Lenders

The trickiest part about applying for urgent loans lies in finding reliable lenders. Skip this part; fraudsters can easily scam you. Choose reliable lenders after checking reviews, ratings, data privacy standards, and security protocols.

If you find it difficult to choose the right lender, let Credmudra’s matchmaker help you find one. Submit your loan application and we’ll match you with the best lender in a few minutes.

2. Gather your Documents and Apply for An Urgent Loan

Visit Credmudra’s website and fill in your details such as age, address, income, work address, phone number, PAN card, and Aadhaar card number. Select the loan amount and repayment tenure, and hit “Apply”.

Credmudra will find the best lender based on your loan’s purpose and expectations. After verification, the lender will approve the loan in less than 3 minutes. You will receive the amount in your bank account in 24 hours.

3. Repay the Loan Amount Promptly

Use the loan amount for any purpose and start repaying the loan right from the next month. Repay the loan amount on time and improve your credit score. With a good credit score, apply for loans without any hassle in the future.

Get Urgent Loans In 24 Hours From Credmudra

Maintaining a good credit score is crucial to applying for personal loans. But having a bad credit score doesn’t mean you cannot get personal loans at all. Using Credmudra, you can apply for urgent loans and get approved even with a bad credit score.

With a remarkable disbursal rate of 90%, Credmudra aims to make personal loans accessible to everyone. Submit your application and documents, and get ready to use the loan amount for the required purpose in 24 hours.

Sign up on Credmudra to get personal loans in a hassle-free way.

Also, Read: Get a Personal Loan Without Credit Score – 5 Fool-Proof Ways


1. Can I Get an Urgent Loan with a Bad Credit Score in India?

Yes, only a few lenders offer urgent loans with bad credit scores. It comes with some disadvantages like high interest rates and short repayment tenure. So, it’s always best to work on your credit score and improve it.

2. Can I Get an Urgent Loan with a Bad Credit Score Without A Salary Slip?

No, it’s not possible to apply for personal loans without a salary slip. You can only apply if someone agrees to be your co-applicant.

3. Can I Get An Urgent Loan within a Day?

The disbursal time varies from lender to lender, but Credmudra offers same-day disbursal to help borrowers get access to money quickly.

4. What is the Interest Rate for Urgent Loans with a Bad Credit Score?

The interest rate for loans with bad credit scores may range between 30-50%.

5. How to Improve My Credit Score?

Repay your existing loans on time, avoid taking too many loans at a time, and maintain old credit cards to lengthen your credit history.

Also, Read: How to Get a Business Loan on Low Credit Score?

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