About Bad Credit Loan

A lower credit score describes a borrower’s credibility with very high credit risk. Not necessarily does a poor credit score prove that a borrower does not have the intention to pay his/her liabilities. It might be due to his/her delayed payment or default/settlement on any of the credit line or due to wrong reporting by the financial institution. Often a person going through a rough patch in his life fails to make payments on time. Banks don’t take this into consideration.

LendenClub’s automated credit assessment system tries to understand your historical payments in detail. If you have delayed some of your payments, our system will allow you to take a smaller amount of loan. This will help you to recreate your good credit history so that availing loans becomes much easier in future.

What is a bad credit loan?

Bad credit loan is given to individuals with a bad credit score. There are many reasons for which individuals may get a bad credit score:

  • When you have missed or delayed your payments and did not pay within the same month.
  • If your credit card utilization is high and you are serving it with a minimum amount of payment.
  • If you have too many credit inquiries from various lending institution. With each inquiry, your score goes down.
  • If you have less or no credit lines from any lending institution. It means your are New to Credit (NTC) customer.

Drawbacks of a bad credit score

Lenders are less likely to provide loans to an individual with a bad credit score because of a possible delay in payments. Due to this, getting a loan or credit card could become difficult. Many NBFC or Banks will reject loan applications. However, there are many lenders like LenDenClub, who provide loans even if you have a bad credit score. But LenDenClub doesn’t reject a borrower purely on the basis of their credit score. It has 200+ data points on the basis of which a borrower’s repayment capacity is assessed.

Fulfill your short term capital need. It’s simple, instant and requires zero physical documentation. Get your short term loan application from private money lenders at LenDenClub today.

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Why get a bad credit loan from LenDenClub

Getting a bad credit loan from peer to peer lending platform is hassle-free, simple and easy.

Fast Loan Approval

With the help of digital automation, we have made our loan approval process much faster compared to any bank. We are continuously improving to provide you instant loans. Apply now to give it a try.

Flexible Loan Interest Rate

We do not have rigid interest rates. Interest rates are linked to the borrower’s credit score calculated through our internal credit rating process. A better LenDen score ensures a lesser rate of interest for the borrower.

Easy Loan Processing

Our user friendly and tech enabled platform ensures that getting your loan approved is simply a few clicks away. Do not go by our words, try our platform to fulfill your loan needs. Start applying for your loan now!

No Prepayment Charges

No additional charges if you want to close your loan earlier. We provide the flexibility of prepayment to our borrowers.

Have you faced problem in getting a loan approved by a bank due to bad credit? If yes, check your eligibility instantly!!

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Bad Credit Loan Eligibility

All salaried individuals can get a loan from us. Check if you are eligible below.


The borrower’s minimum age should be 21 and maximum should be 55.


Minimum Net Monthly Income should be over Rs 12,000

Bank Default

Must have no record of loan/credit card defaults after Jan 2012.

Stay Type

The borrower should be staying with family or friends.


Resident of Mumbai, Pune, Ahmedabad, Nagpur or Bangalore.

Employment Type

Only salaried individuals are eligible to apply for a loan.

Everything you need to know about short term personal loans

LenDenClub is one of the fastest growing Peer to Peer (P2P) lending platforms in India. It connects a lender looking to lend their money with creditworthy borrowers looking for bad credit loan.

Click here to create your borrower profile by providing the required information. It is just a 2 step process. Your profile will be assessed based on our credit & risk policies. Once approved, your profile will be listed on the platform. Any lender, who finds your profile suitable, will fund your loan.

You need to submit a few documents regarding your identity and income, which are:

Pan Card
Passport/Aadhar Card (compulsory) /Voter ID
Last two months salary slips
Last two months salary account statement
Passport Size photograph
In case you are staying at rental premises, you need to submit a rent agreement copy as well.

LenDenClub charges two type of fees from borrowers.

Fixed registration fee of Rs. 750 is charged from each borrowers at the time of registration. LenDenClub charges these fees to recover cost incurred towards assessment of the borrower. Registration fee is a one time fees paid by the user and it is non-refundable.
Loan processing fee is charged at the time of loan disbursal. Processing fee is 4% of the loan amount or Rs. 2000 (whichever is higher) and applicable taxes. The amount is deducted from the disbursed amount.

Bad Credit Loan Interest Rates & Charges

Here is an exhaustive list of all the fees and charges to be paid for the instant personal loan.


Min apr


Max apr


avg apr

  • Description of Charges
  • Registration Fee*
    Rs. 750/-
  • Loan Processing Charges*
    4% of loan amount or Rs. 2000/- (whichever is higher)
  • Pre-payment charges*
  • Account Statement Charges

For further details, please Click here

How to mprove bad credit score

Bad credit score? Here are some ways to improve it!

Credit scores are not merely points but an indicator of something deeper. They give financial institutions an idea about your credibility as a person. Low credit scores are an indication that you’re not good with repayments and financial institutions will think twice before giving you another loan. A good credit score not only shows you’re credible but also keeps you in a position of strength when applying for a fresh low. But many a times situations come up, blocking us from paying the EMI’s on time which reflects badly on the credit score. But there’s always a way out. Here are the things you need to do to get back on the good books of the financial institutions and improve your credit score:

1. Pay off your credit card bills in full:

Credit cards are a big thorn in your way if you’re looking to improve your credit score. Try keeping up with your EMI dates and make multiple payments in the same month if possible. If you have more than one credit card, consolidate the bill entirely through an instant short term personal loan from a bank or Peer-to-Peer lending platform like LenDenClub. This is a viable way out as it’s hard to remember multiple dates and the interest rates are too damn high. P2P loans are structured for specifically this purpose, among others.

2. Increase your savings:

If you’re really serious about improving your credit score, take extreme measures. Start spending less on luxuries and stop buying things for a while. This way you’ll save valuable amounts each month which could be used to pay off the EMI or credit card bills for the next month in advance. Be smart with your spending and look out for discounts and coupons. This will be reflected in your credit report which will show your good intention towards repayment.

3. Do not indulge in settlements:

Settlements should be your last retort when on the quest to improving your credit score. Settlements reflect bad behaviour towards repayments and give the financial institutions a subconscious message that you’re not interested in paying the due, even if you are. Pay the whole amount due in one go. Alternatively, you could pay half or quarter of the due amount and pay the rest as and when you get the cash. There’s a provision whereby you can sit down with your financier and work out how you’re going to pay the outstanding amount. This reflects responsible behaviour on the part of the borrower and shoots your credit score up.

4. Take out high-interest rate loans:

Here’s the quickest way out. It may sound a bit uncanny but taking out a high-interest rate personal loan could work wonders when improving your credit score. The credit bureau too would take this into account and conclude that you’ll be able to pull of lower interest rate loans too. Your past blip in your credit score suddenly gets overshadowed by the enormity of the interest rate you’re paying. But this should be an option if you have a high paying day job to be able to pay the expensive EMI of this personal loan. If you’re able to pull this off, your credit score will reflect a significant rise and suddenly you’ll be getting calls every day from various financial institutions offering you loans.

Peer-to-Peer lending platforms like LenDenClub would be ideal in such a scenario as they offer instant, short-term personal loans to individuals whose applications are rejected outright by banks on account of low credit scores. Money lenders like LenDenClub offer same day approval and disburse the money within 72 hours. Salaried employees having a pay below 20,000 are not rejected like they are by banks, in fact, the salary cap at LenDenClub is as low as 12,000. For honest, loyal individuals not looking to debunk on EMI payments and in need of inspiration for improving their credit scores, P2P loans fit the billing. Apply now and improve your credit score.

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