If your CIBIL score is low, then there is no need to worry now. The Reserve Bank of India (RBI) has implemented a new guideline from July 15, 2025, under which personal loans up to ₹ 5 lakh can be availed even by those with low scores.
Now banks and NBFCs will not only depend on the CIBIL score, but will also take into account the applicant’s current income, banking behavior, job stability and current responsibilities.
Earlier, where those with a score of less than 750 were denied loans, now they will also get a chance. The biggest benefit of this change will be for newly employed youth, small businessmen and people from rural areas who have limited credit history.
However, the interest rate on the loan may be slightly higher and monitoring of EMI payments will be strict. If not paid on time, the score may deteriorate further.
The application process is very easy, just keep your income and banking documents ready and confirm loan availability from the concerned bank under the new guidelines. This move by RBI is a ray of hope for lakhs of people who were earlier deprived of financial help due to their score.