Banks and other financial institutions in India offer multiple lending options, and if you're worried that you won't be able to get financing from a bank, don't worry. Besides your credit report, lenders also consider other factors to determine whether you qualify for a loan or not. Let's see if it is possible to get a loan with a bad credit report in India.Eligibility for loans with bad credit is generally more flexible compared to standard loans. According to guidelines from SBI, HDFC Bank, and leading NBFCs like Bajaj Finserv, applicants must be Indian residents aged 21-65, with a stable source of income (salaried or self-employed). While a high credit score is not mandatory, lenders assess income stability, employment continuity, and, occasionally, the presence of a guarantor or co-applicant to mitigate risk. Interest rates for bad credit loans are typically higher than those for regular personal loans, reflecting the lender’s increased risk. As per data from the Reserve Bank of India (RBI) and major NBFCs, interest rates can range from 14% to 28% per annum, depending on the applicant’s profile, repayment capacity, and the lender’s policy. Some government-backed schemes, like those under Mudra Yojana, may offer slightly lower rates for eligible borrowers. The sanctioned loan amount generally varies from Rs 10,000 to Rs 5 lakh, subject to the applicant’s income and repayment ability. Banks and NBFCs often cap the loan amount for bad credit applicants to limit exposure to default. Many NBFCs and new-age digital lenders have streamlined their approval processes, leveraging alternative credit assessment tools such as bank statements, utility bill payment history, and social media profiles. Quick online application and minimal documentation further facilitate easy approval, making credit accessible to those with poor credit histories.