Need A Personal Loan With A Low CIBIL Score? Here's How To Avail One
Afraid of getting your personal loan rejected due to a low CIBIL score? Worry Not! Read to know the 5 ways to help you get personal loans.
A personal loan may be of great aid if you need funds for immediate expenses. There are many advantages to obtaining a personal loan, including the fact that you don’t need to pledge any securities. Most lending agencies, however, require a high CIBIL score for such loans.
But what if you have a low credit score? Learn how to obtain a personal loan with a low CIBIL score by reading this article.
How To Get A Personal Loan With A low CIBIL score?If you have a low credit score, you may get a personal loan by following these tips:
Opt For A Lower Personal Loan AmountIf you request a high loan amount with a low credit score, your lender may perceive you as a high-risk candidate. Your lender sees these as indicators that you may default on the loan.
Lenders may be more likely to grant a personal loan request if the amount is lower. It will also be much easier to repay a lower amount.
Show Income ProofA lender's primary concern is getting their money back. With a regular income, you can prove to lenders that you can repay the loan. Even if your CIBIL score is low, lenders may consider your loan application if you have a reliable income source.
Opt For Collateral-Based LoansYou can get a personal loan without collateral and security if you have a high credit score. Low credit scores, however, may require you to offer collateral for a personal loan. Doing so will allow you to borrow money from the lender of your choice more easily.
Get A Co-Applicant For The LoanYou will have a greater chance of getting a personal loan approved with a low CIBIL score if you apply with a co-applicant or guarantor. Having a co-applicant with a good credit score and a steady income will increase your chances of getting a better loan rate. However, if you default on your loan, your co-applicant will be responsible for repayment.
Check And Correct Your Credit ReportRegularly check your CIBIL score, and report any errors as soon as possible. This way, you'll improve your credit score and get a personal loan more easily.
Many lenders will be willing to lend you money even if you have a low score, but they might charge a higher interest rate. Follow the tips above to obtain a personal loan despite a low CIBIL score.
Frequently Asked Questions:
Q1. How can you check your CIBIL score?
Ans. Check your CIBIL score at https://www.cibil.com/.
Q2. What is a good CIBIL score?
Ans. Most lenders will approve your personal loan request if your CIBIL score is between 750 and 900.