CIBIL score is used to measure everything that you do and wish to do in the financial market. Having a low CIBIL score can be a challenge. But there are still methods through which you can get a low cibil score personal loan.
The ability to repay the loan is checked through your credit score. A credit score or CIBIL score gives a summary of your financial history. From the amount you have taken, how have you repaid it, are you still repaying, is there any lag, and so on? It is often said that getting a loan with low cibil score is not possible. But that is not entirely true. Many lenders are willing to give loans to people with low cibil scores. There are several other ways to acquire a loan with a low cibil score.
Still, stuck with finding a lender? Still, figuring out how to get a loan with a low cibil score? Check out Buddy Loan. It offers the top sources for receiving a personal loan right away. After evaluating your ability and financial situation, it develops a customised plan most suited for you. The app is available on the Play Store.
What is a Credit Score?
One of the key factors used to decide whether to approve a loan is the CIBIL score. Your CIBIL (Credit Information Bureau Limited) score is how banks and other financial organisations can determine how credit-worthy you are. It is a personal identification number that the bank uses to assess your eligibility for loans and credit cards. The CIBIL score, India’s first credit rating system ever, is acknowledged by all banks as the definitive indicator of a person’s credit standing.
How To Get a Loan with a Low Cibil Score?
Here are five ways to get a low cibil score personal loan.
Applying for a low personal loan amount
If lenders perceive you as a high-risk candidate, they may shy away from giving you a huge personal loan amount. Still, if you can negotiate and decide on a lower or middle ground for a personal loan, you might get your loan sanctioned quickly.
Evidence for Income Support
A salary hike or an income increase can benefit you while applying for a low cibil score loan. Proof of these could help you land a better deal; it also shows that you are steady and can easily pay off your debt.
Getting a Personal Loan With Higher Interest Fees.
A poor Cibil score would result in a personal loan with a high-interest rate. The Bank may charge you a higher interest rate on the loan amount you want to lessen the risk of granting a low CIBIL score personal loan to borrowers with poor credit. Given how challenging it is to obtain a loan in the first place, accepting the lender’s offer, even if the interest rate is greater, is frequently the best course of action.
Applying For a Joint Loan or Getting a Guarantor
An earning family member with a good credit score can help you get a personal loan, even if the primary applicant’s credit score is low; because of the second applicant, they can get approval for the loan.
Apply Through an NBFC or Digital Lender.
For many banks, a high disposable income or a steady job might not cut the chase, but it is sufficient for many NBFCs and Fintech lenders. Digital Fintechs or loan apps give credit to people with minimum documentation and quick process but with a high-interest rate.
A recommendation –
Another point you can keep in mind while applying for a loan without cibil score is checking for errors in your credit report. Sometimes if the latest information has not been updated, it may reflect in your score. So it is important to check your credit score regularly. You can use Buddy Score to calculate your credit score and correct errors.
A credit score is the most important factor in accessing your repayment capability. Many banks offer loans to people with low credit scores, and it is important to note that these may be at a higher interest rate. Following all of these points might get you a personal loan, but keeping your credit score from falling further is still important.