Low CIBIL Score? Here's What to Do.
The Jan Samarth solar loan generally requires a CIBIL score above 650–700, though the exact threshold varies by bank. If your score is below this range or you have NPA/default flags, your loan application will likely be rejected. This guide covers how to check, improve, and work around a low score.
Understanding Your CIBIL Score
| Score Range | Rating | Solar Loan Impact |
|---|---|---|
| 750–900 | Excellent | Loan approved at best rates; fastest processing |
| 700–749 | Good | Loan likely approved; may get slightly higher interest |
| 650–699 | Average | May need co-applicant or additional income proof |
| Below 650 | Low | Loan likely rejected; improve score first |
| -1 or 0 | No History | No credit record; banks see this as a risk |
How to Check Your CIBIL Score for Free
You are entitled to ONE free credit report per year from CIBIL under RBI regulations.
Always check your score before applying for a Jan Samarth loan to avoid unnecessary hard inquiries.
| Platform | Details |
|---|---|
| CIBIL Official | cibil.com — 1 free report per year |
| PaisaBazaar | Free unlimited CIBIL score checks |
| BankBazaar | Free score with report summary |
| CRED App | Free score check for credit card users |
| Banking Apps | SBI YONO, HDFC, ICICI — most show free scores |
Why Your CIBIL Score Might Be Low
| # | Reason |
|---|---|
| 1 | Missed or delayed EMI payments on loans or credit cards |
| 2 | Loan account reported as NPA (Non-Performing Asset) by bank |
| 3 | Settled account (shows "Settled" instead of "Closed") |
| 4 | High credit card utilisation (above 30% of limit) |
| 5 | Multiple loan/credit card applications in a short period |
| 6 | No credit history at all (score = -1 or 0) |
| 7 | Errors or wrong information reported by a bank |
| 8 | Being a guarantor on someone else's defaulted loan |
| 9 | Outstanding dues on old, forgotten credit cards |
| 10 | Loan tenure completed but bank didn't report closure |
10 Proven Ways to Improve Your CIBIL Score
| Step | Action | Details |
|---|---|---|
| 1 | Pay All Current EMIs and Bills on Time | Payment history accounts for approximately 35% of your score. Set up auto-debit or ECS for all EMIs. Even one missed payment can drop your score by 50–70 points. |
| 2 | Clear Any Outstanding Dues Immediately | If you have overdue EMI or credit card balance, pay it in full. It typically takes 3–6 months of on-time payments after clearance to show meaningful improvement. |
| 3 | Reduce Credit Card Utilisation Below 30% | If your credit card limit is ₹1 lakh and your outstanding is ₹40,000, your utilisation is 40% — this hurts your score. Pay down balances to bring it under 30%. |
| 4 | Stop Applying for Multiple Loans/Cards | Every application triggers a "hard enquiry" which drops your score by 5–10 points. Avoid any new credit applications for 3–6 months before your solar loan. |
| 5 | Dispute Errors in Your CIBIL Report | Wrong entries — a loan you didn't take, a payment marked missed that was paid — can unfairly drop your score by 50–200 points. File a dispute at cibil.com immediately. |
| 6 | Maintain a Healthy Mix of Credit | Having both secured loans (home/car) and unsecured credit (credit card) builds a healthier credit profile over time than having only one type. |
| 7 | Avoid Closing Old Credit Cards | Older accounts with good payment history positively contribute to your score. Closing them reduces your credit history length, which can hurt. |
| 8 | Add a Co-Applicant for the Solar Loan | Jan Samarth now supports co-applicants. If your spouse or adult child has a good score (700+), applying jointly significantly improves your chances. |
| 9 | Get a Secured Credit Card (If No History) | If your score is -1 (no history), take a small FD-backed credit card. Use it for small purchases and pay in full monthly. After 6–12 months, you'll typically have a score above 700. |
| 10 | Wait and Maintain Clean Repayment | CIBIL typically takes 6–8 months of consistent repayment to show meaningful score improvement. Plan ahead if your score is currently low. |
Alternative Options If Loan Is Rejected
| Option | Details |
|---|---|
| Co-Applicant | Apply jointly with a family member who has a good credit score. This is the fastest workaround. |
| State-Level NBFC or Cooperative Bank | Some may have relaxed eligibility norms compared to nationalised banks. |
| DISCOM-Facilitated Programs | Some states have DISCOM-specific solar loan programs with different criteria. |
| Employer Salary Advance | Enquire if your employer offers salary advance or loan facility for solar installation. |
| Pay Upfront | If you can arrange the full amount, you don't need a loan at all. The ₹78,000 subsidy is independent of the loan — it comes directly to your bank account after commissioning. |
Timeline for Score Recovery
| Action | Score Impact Timeline |
|---|---|
| Clearing overdue balances | Score starts improving in 30–45 days |
| Consistent on-time payments | Visible improvement in 3–6 months |
| Disputing wrong entries | Resolution in 30 days; score updates in next cycle |
| Building credit from no-history (-1) | Score appears after 6–12 months of credit activity |
| Full recovery from NPA | 12–36 months of clean history (NPA stays on report for 7 years but impact fades) |
Related Guides & Official Sources
| Resource | Description |
|---|---|
| PM Surya Ghar Subsidy — Complete Guide | Everything about subsidy eligibility, amounts, and claiming process |
| Jan Samarth Solar Loan — Step-by-Step | Full walkthrough of the Jan Samarth loan application process |
| Resolving NPA & Substandard Asset Flags | Detailed guide for clearing NPA flags from your credit report |
| CIBIL Disputes FAQ ↗ | Official CIBIL guide on filing disputes for wrong entries |
| Jan Samarth Portal ↗ | Official government portal for solar loan applications |
| PM Surya Ghar Portal ↗ | Official PM Surya Ghar registration and tracking portal |
Frequently Asked Questions
What is the minimum CIBIL score required for a Jan Samarth solar loan?
There is no single fixed threshold. Most empanelled banks generally require a score above 650–700, but the exact cutoff varies by bank. SBI and Bank of Baroda tend to have stricter thresholds than some smaller nationalised banks.
Can I apply for the PM Surya Ghar subsidy without taking a loan?
Yes, absolutely. The subsidy is independent of the loan. You can pay the full installation cost upfront to your empanelled vendor, and the subsidy (up to ₹78,000) will still be credited to your bank account after commissioning.
How quickly can I improve my CIBIL score?
If the issue is a reporting error, a dispute can resolve it within 30 days. For genuine low scores, consistent on-time payments show improvement in 3–6 months. Full recovery from NPA can take 12–36 months.
Will checking my CIBIL score lower it?
No. Checking your own score is a "soft enquiry" and does NOT affect your score. Only loan/credit card applications by banks trigger "hard enquiries" that lower your score by 5–10 points each.
Can a co-applicant help if my score is very low?
Yes. Jan Samarth now allows co-applicants. If your spouse or adult child has a score above 700, applying jointly can significantly improve your approval chances. The co-applicant takes joint liability for the loan.
Every loan application triggers a hard enquiry that drops your score by 5–10 points. If you've been rejected, fix the underlying issue first before re-applying. Multiple rejections in a short period will make your score worse.
SOLGURU handles the entire PM Surya Ghar process — from registration and loan to installation and subsidy. We'll find the best financing path for your situation. Get free consultation →