How Can I Get A Personal Loan With A 700 CIBIL Score?
Find out how a 700 CIBIL score can qualify you for a personal loan and what steps you can take to increase your chances of getting approved. Read Now!
Lenders use CIBIL scores to assess a borrower's creditworthiness. Most lenders will ask for a high CIBIL score when you apply for a personal loan.
But is it possible to get a personal loan despite having a low CIBIL score? What if your credit score is 700? Can you get a personal loan from any lender?
To all the above questions, the answer is yes. If you have a CIBIL score of 700, you can get approved for a personal loan. Here’s how.
CIBIL Scores and Their Importance
CIBIL scores are three-digit numerical representations of your credit history. A rating agency, CIBIL, assesses your credit history and assigns you this score.
But why are CIBIL scores so important? A good credit score determines your creditworthiness. Thus, the lender can easily assess your ability to repay your loans.
How To Get A Personal Loan For A CIBIL Score Of 700?There are a few steps to abide by before applying for a personal loan for a CIBIL score of 700.
1. Choose Collateral-Based LoansWhen you have a high credit score, personal loans are usually collateral-free. However, if you have a 700 CIBIL score, a personal loan will require you to offer collateral, which can be any valuable asset. This asset can help you obtain a loan from the lender of your choice more easily.
2. Prove Your CreditworthinessLenders look for creditworthy borrowers to approve loan applications. You can obtain a personal loan from any lender if you have a steady source of income. Display your salary slip or bank statements as proof of income even if your credit score is 700 or less. It proves to the lenders that you can repay the loan on time.
3. Get A Co-Applicant or Guarantor For The Loan
Even if your credit score is as low as 700, you can apply for a personal loan with a co-applicant or guarantor. The guarantor should, however, have a stable income, and if the co-applicant is a family member, you must inform them about your intent to borrow money.
Co-applicants must fulfill KYC requirements to be eligible to apply. If the co-applicant fulfils the criteria, the lender will run a credit check and approve the loan application.
4. Apply For A Lower AmountIt is best not to apply for a higher amount if you have a CIBIL score of 700, as the lender may not approve your loan due to suspicions about your creditworthiness. The interest rates charged on a personal loan are lower when you apply for a smaller loan amount. As a result, you will have a better chance of getting your loan approved.
5. Shop AroundDepending on the lender, some may not budge from a 750 CIBIL score requirement for lending to a borrower, while others may be more flexible. Check out which NBFCs will lend to borrowers with a lower CIBIL score by looking around.
Apply For A Personal Loan With IIFL FinanceGet a comprehensive and customised personal loan from IIFL Finance based on your capital needs. The quick disbursement process of our personal loan allows you to receive up to Rs 5 lakh instantly. Visit IIFL Finance website or the nearest branch to apply for a personal loan online or offline.
Frequently Asked Questions
Q1. What is a good reason to get a personal loan?
Ans. Most borrowers seek personal loans to consolidate debt.
Q2. Can you get a personal loan with a 700 CIBIL score?
Ans. Yes. You can get a personal loan with a CIBIL score of 700. However, you may need to pay a higher interest rate.