Can You Get a Loan with 650 CIBIL Score? Real-Life Advice and Options

💬 “I want to get married, but I don’t know where to get the funds from.”

That’s what Amar, a close friend of mine, told me one afternoon over chai.

He wasn’t broke. He wasn’t reckless with money. In fact, Amar had a steady job in Pune, a supportive family, and dreams just like the rest of us — to settle down, start a life with someone he loved, and do it with dignity.

But when it came to arranging ₹1.5–2 lakhs quickly for his wedding expenses, he was stuck.

🧭 We Did What Friends Do — Explore Options

Like any well-wisher, I rattled off the usual suggestions:

“Why don’t you sell off that plot of land you inherited?”

“Tried. But my mom’s not okay with the current price. She thinks we’re being lowballed.”

“Ask your sister. You guys are close, right?”

He looked away. “She just had a baby. I don’t want her thinking I’m desperate.”

There was a pause.

So I said it.

“What about taking a personal loan?”

😶 His Face Changed Completely

“That’s not an option for me anymore,” he said quietly.

That’s when Amar opened up about what happened in 2020. The pandemic hit all of us, but for him, it meant losing 4 months of salary. He had taken a ₹1 lakh loan back then to cover expenses, thinking he’d repay once things stabilized.

Only, they didn’t.

Repayment notices piled up. He avoided the calls at first. Then came the late fees. Then the threats. Eventually, after two years of stress, he managed to “settle” the loan for ₹20,000 — just to close the chapter.

What he didn’t know?

That settlement left a giant negative mark on his CIBIL report.

His score dropped. His profile got flagged. And now, even a basic ₹50,000 loan wouldn’t come easy.

😔 “I Didn’t Even Know It Would Affect Me This Way”

He wasn’t lazy. He wasn’t irresponsible.
He was just uninformed. Like millions of others.

That’s when I realized something — financial mistakes aren’t always due to bad decisions. Sometimes, they’re due to a lack of guidance, and a whole lot of shame attached to asking for help.

🔁 So We Made a Plan

I assured Amar — this wasn’t the end.

“You can rebuild your CIBIL. You’ll just need time, a bit of patience, and the right steps.”

And that’s what this article is all about — for Amar, and anyone reading this who feels like one bad loan means game over.

📊 What Does a CIBIL Score of 650 Actually Mean?

Let’s break it down:

Score	Category	Chances of Loan Approval
750–900	Excellent	High (best interest rates)
700–749	Good	Moderate (may need docs)
650–699	Fair / Watchlist	Possible but difficult
Below 650	Poor	Low (especially for banks)

A 650 CIBIL score puts you in a grey zone. It’s not rock bottom, but lenders treat it as risky.

In Amar’s case, that single “settled” tag destroyed his clean history.

💡 Can You Get a Loan with 650 CIBIL Score?

Yes. But…

You’ll face:

✅ Limited options (mostly from loan apps)
✅ Higher interest rates (24–48% annual APR)
✅ Lower loan amounts (₹3,000 – ₹25,000 range)
❌ Rejection from traditional banks
❌ Temptation from shady, spammy apps

It’s like walking through a minefield — one wrong step and you could fall into another debt trap.

👉 If you’re unsure which apps to trust, read this first:
👉 How to Know If a Loan App Is Trustworthy in India – 2025 Guide

🛠 What Can You Do if You’re in Amar’s Situation?

I told Amar something I’ll tell you too:

“It’s not the end. But now, it’s time to rebuild.”

Here’s how:

🔁 1. Start with a Small, Safe Loan

Look for apps that offer ₹3,000–₹10,000 and report repayments to credit bureaus.

Use it, repay on time — your score will gradually climb.

👉 Here’s a guide to help you get started:
👉 How to Build Your CIBIL Score with Small Loan Apps – 2025 Guide

🧠 2. Don’t Apply to 5 Apps at Once

Every application triggers a “hard inquiry.”
Too many = CIBIL panic → even lower score.

Instead, research and apply to just one trusted lender.

Need help? Check:
👉 Top 5 Instant Loan Apps in India (Updated for 2025)

🧾 3. Monitor Your CIBIL Every Month

Don’t guess — track.
You can get 1 free CIBIL report each year and track scores through apps like Paytm, Paisabazaar, etc.

🪫 4. Avoid “Settlement” in Future

If you can’t pay your EMI, talk to the lender — don’t disappear.
Settlement is seen as failure to repay and can stay in your credit file for years.

🔚 Final Thoughts: You Are More Than Your Credit Score

Amar’s story may sound sad, but it’s also hopeful.

He now knows where he stands. He’s started rebuilding. And soon, with a bit of patience, he’ll get there.

A score of 650 is not a sentence — it’s a signal.
A signal that you need to pause, plan, and push forward.