Urgent Business Loan with Bad Credit in India @ 650 CIBIL Score

Is it possible to take a business loan with bad credit? The answer is yes. Quick Cashs connected with multiple lenders that provide business loans at a 650 credit score.
So, a low CIBIL score doesn’t mean you’re out of the game. Here’s how you can still access urgent funding and what to do next to strengthen your financial footing.

What is a Bad Credit Score in India?

Credit scores, as reported by CIBIL, run from a low of 300 to a high of 900. Most lenders and financial institutions consider a credit score below 650 to be risky.Causes for a low score include:

• Missed EMI payments
• Credit card defaults
• Frequent loan applications
• High credit utilization

Can I Take a Business Loan with Bad Credit in India?

Yes. Many NBFCs, fintech lenders, and private financial institutions offer loans to borrowers with poor credit. They evaluate:

• Business revenue and cash flow
• Bank and GST statements
• Years of operation
• Collateral, if any

Loan Options for Business Owners with Bad Credit

1. NBFC Loans

NBFCs are one of the good options to get business loans with bad credit. They accept lower credit scores but often charge higher interest.

2. Fintech Business Loans

Digital lenders like Lendingkart, Indifi, and others offer quick approvals using alternative data points. Perfect for short-term needs.

3. Mortgage Business Loans

Pledging collateral like property loans increases loan approval chances and lowers interest rates—even with bad credit.

4. Peer-to-Peer (P2P) Lending

Platforms like Faircent or Lendbox connect borrowers directly with investors, eliminating the need for traditional institutions.

5. Overdrafts and Credit Lines

If you maintain strong bank account activity, banks may still offer you an overdraft facility despite your credit score.

6. Loan Against FD (Fixed Deposit)

It is possible to borrow loan against your fixed deposit. This loan is available with a bad credit score.

Also Read: 10 lakh instant loan without documents

Top Lenders Provide Business Loan

Banks / NBFCs	Interest Rate	Loan Amount	Repay Term
Faircent	14% p.a. to 21% p.a.	Rs. 50,000 to Rs. 10 lakh	12 months to 36 months
InCred	18% p.a. to 28% p.a.	Rs. 30,000 to Rs. 7.5 lakh	12 months to 48 months
Chola Finance	14% p.a. to 21% p.a.	Rs. 30,000 to Rs. 20 lakh	12 months to 60 months
Poonawalla  Fincorp	15% p.a. to 28% p.a.	Up to Rs. 50 lakh	Up to 4 years
FT Cash	12% p.a. to 22% p.a.	Up to Rs. 50 lakh	Up to 3 years
NeoGrowth	19% p.a. to 24% p.a.	Up to Rs. 75 lakh	Up to 7 years
FlexiLoans	12% p.a. onwards	Up to Rs. 1 crore	1 year to 5 years
LendingKart	12% p.a. to 28% p.a.	Up to Rs. 1 crore	12 months to 36 months
Ashv Finance	18% p.a. to 21% p.a.	Up to Rs. 40 lakh	12 months to 36 months
Aditya Birla	14% p.a. onward	Up to Rs. 15 lakh	12 months to 36 months
Tata Capital	16.50% to 19% p.a.	Up to Rs. 75 lakh	12 months to 36 months

How to Improve Your CIBIL Score

Getting a loan now is one thing—but you’ll want better terms next time. Here’s how to build your credit backup:

✅ Pay Your EMIs on Mention Time

Good credit scores result from paying your debts on time. Pay all your EMIs on time such as credit card bills, personal loan EMIs, etc

✅ Keep Credit Utilization Low

 Always maintain your credit utilization ratio of 30–40% of your available credit limit. If you have a credit card with a 1 lakh credit limit, you should not cross the spending limit of 30,000 to 40,000.

✅ Don’t Apply for Too Many Loans at Once

 Borrowers’ aggressive loan applications can lead to credit score reductions due to numerous credit inquiries.

✅ Monitor Your Credit Report Everyday

If you find any errors or discrepancies, report them to CIBIL for correction.

✅ Maintain a Mix of Credit Types

Having both secured and unsecured loans (in moderation) shows your balanced credit behavior.

Also Read: Can you get a personal loan with 13000 salary?

You Should Avoid Red Flags

• Fraudulent Lenders: Don’t fall for “guaranteed approval” schemes.
• Hidden Charges: Always check for processing fees, foreclosure penalties, and late fees.
• Unregistered Apps: Only use apps registered with the RBI (for NBFCs) or SEBI (for P2P platforms).

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