Yes, a person with a CIBIL default can still apply for a personal loan, but approval is more difficult and comes with stricter conditions. A CIBIL default or low credit score signals to lenders that you have had trouble repaying past credit, which increases their risk and reduces your chances of getting a standard personal loan at regular interest rates.
You can apply for a personal loan even with a default on your credit report, but many banks may reject the application, offer a lower loan amount, or charge a higher interest rate because of the increased risk. Some lenders still consider such applications with careful scrutiny.
If you’ve defaulted before, one of the most effective ways to get a personal loan is to offer collateral (like fixed deposits, property, or gold) or choose a secured personal loan. Because the lender can recover funds from the asset if you fail to repay, approval chances improve despite bad credit.
Having a guarantor or co-applicant with strong credit and stable income makes banks more comfortable approving your loan. This reduces the lender’s risk and often leads to better loan terms despite your default status.
Some NBFCs, online lenders, and fintech platforms are more flexible with credit history. They may provide personal loans to applicants with past defaults, though typically at higher interest rates and with stricter repayment terms.
If possible, settle old defaults and pay down overdue accounts before applying. Improving your credit behaviour and waiting for your CIBIL score to recover significantly increases your approval chances and lowers interest rates. I hope you understood can cibil defaulter get a loan.
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Can CIBIL Defaulter Get Personal Loan?
priya
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2026-01-22T09:07:40+00:00 2026-01-22T09:07:42+00:00Comment
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