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How a Short-term Loan Can Improve your CIBIL Score?

Have you ever been to a bank for a personal loan and got rejected because your credit score was low? Yeah, we get you! Credit Score is a 3-digit number on which banks and NBFCs (Non Banking Financial Corporations, such as loan and insurance companies, co-operative banks, stock broking firms, etc.) evaluate your capacity to pay the loan on time.

The different Credit Score ranges and their grade is as follows –

Credit Score Ranges



0 or -1

No Credit History

550 – 300








750 and above


Popular credit score systems in India include CIBIL and Z, which range from 300-900 and 300-850, respectively. In general, the higher your credit score is, the better chances you have of loan approvals. Banks and NBFCs reject loan applications if an applicant has zero or poor credit score. Anybody with a credit score of 750 or more has a high rate of loan approval.

Have a zero credit history? Don’t worry!

PaySense enable users with zero credit score to get a short-term personal loan so that they can build and improve their credit score gradually. Learn more about how it works in the video here:

How a personal loan can help improve CIBIL Score?

To start building or repairing your CIBIL score, you can use a personal loan and pay all your EMIs on time. Always use 30% of your available credit line. Such small personal loans are easier to pay and help improve your CIBIL score incrementally. This method of improving your CIBIL Score or any other credit score is also known as ‘Snowball Effect’.

For instance, if you have a salary of 20,000 INR per month and have never taken a loan or used a credit card previously, your credit score will be 0 or -1. However, online loan providers like PaySense can offer you an instant personal loan of Rs. 5,000 to 2 lakh; which you have to repay in a duration ranging from 3 months to 24 months. Let’s assume that you take a loan of 5,000 for 3 months and pay your EMIs regularly on time, your credit score will start increasing. After 3 or 4 such short-term instant personal loans which are easy and affordable to pay, your credit score will improve to 650 and above within an year.

Enjoy a faster & easier loan application process with PaySense Android App. Download it at HERE.

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