How to Get an Instant Personal Loan Online

2 min read | Updated on November 13, 2025, 18:37 IST

About Upstox

Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.

Personal loans are becoming a go-to for young adults to fulfill their short-term needs. Personal loans are unsecured loans that require no collateral and are offered based on the credit score of the candidate. In personal loans, credit score plays a significant role in acquiring a loan with the lowest interest rates.

Impact of Credit Score on Personal Loan

Since personal loans are offered solely based on the creditworthiness of the candidate, the credit score is often the first thing the lender will check. Your credit score is like your financial reputation, which shows how creditworthy you are.

A high credit score helps you negotiate with your lender when deciding on the interest rates on your personal loan. Whereas a low credit score makes lenders hesitant to provide a loan, as the risk of default is high. To compensate for the default risk, a higher interest rate is levied on your loan.

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Factors That Influence Your Credit Score

Here are several factors that influence your credit score.

Payment History

Payment history is an important factor that influences your credit score. It holds a weightage of 35%. If you miss a single payment, it can negatively impact your overall credit score.

Credit Utilisation

When you get a loan, you’re not allowed to use the whole loan amount. The lender will allow you to use a certain percentage of the loaned sum. Credit utilisation is another significant factor, holding 30% weightage in your overall credit score.

Length of Credit History

Lenders find it difficult to trust candidates with no credit history, as they can’t evaluate the creditworthiness of the candidate. Length of credit history holds 15% weightage when calculating your credit score.

Types and Number of Credit Accounts

Candidates having different types of well-managed credit accounts like personal loans, credit cards, etc, show he/she is financially responsible and trustworthy. This holds 20% weightage of the overall loan amount.

How to Get an Instant Personal Loan With a Low Credit Score?

Here’s how you can get a personal loan with a low credit score.

Borrow a Lower Loan Amount

By lowering your loan amount, the default risk faced by the lender also decreases and hence it could be easier to obtain a personal loan.

Choose a Shorter Loan Tenure

Choose a shorter loan period as it reduces the risk for the lender, and hence increases the chances of your loan application being approved.

Choose affordable EMI

Ensure that you can afford to pay the EMIs of the loan on time. Failing to do so can plummet your credit score further.

Have a Co-Applicant

Having a co-applicant for the loan with a good credit score will increase the chances of your loan being accepted.

How to Improve Your Credit Score Before Applying for a Personal Loan?

Review your credit score.

Review your credit report and look for any discrepancies or errors that may have caused your credit score to fall. If you do identify some errors, have them rectified immediately.

Pay Pending EMIs

Settle all your past dues, along with the penalties, so that your credit score can improve and you don’t accumulate more penalties.

Avoid Applying for Multiple Loans

When you apply for a loan, the lender pulls up your credit report and performs a credit check. If you aren't a desirable candidate for them, they will reject your loan application, which will negatively affect your credit score.

Lower Your Credit Utilisation

Try to keep your expenditures below the credit limit so that you don’t go above the limit, leading to a fall in your credit score.

Take Low CIBIL Score Loans

Certain lenders offer loans to individuals with low CIBIL scores. You can opt for those and use them to better your credit score by making timely payments and staying below the credit limit.

You may get a personal loan with a low credit score, but it is crucial to fix and maintain a good credit score so you can get your loan applications approved quickly at decent interest rates. After all, your credit score is your financial reputation.

About Author

Mariyam Sara

Sub-Editor

holds an MBA in Finance and is a true Finance Fanatic. She writes extensively on all things finance whether it’s stock trading, personal finance, or insurance, chances are she’s covered it. When she’s not writing, she’s busy pursuing NISM certifications, experimenting with new baking recipes.