Personal Loan at Low CIBIL Score a CIBIL score is a numerical explanation of your credit record. The lenders use it as a tool to determine your creditworthiness, i.e. your capacity to repay the loan in future. It is a 3-digit number that ranges from 300 to 900, and a good credit score starts from 750 onwards. If you have a good CIBIL score, Your Personal Loan application will be approved with no hassle.
How does a CIBIL score influence your personal loan application?
Personal loans are very helpful for immediate access to funds. Moreover, personal loans are unsecured loans. This means that you are not asked to attach any collateral or security for the loan rather it is approved on the basis of your creditworthiness. A credit score is an essential factor in getting a personal loan approved. However, there are other factors which also affect your application for a loan.
What can you do in the event of bad or Low CIBIL Score
Collateral Loan: In case your personal loan application gets rejected due to a low or bad CIBIL score, you can apply for a secured loan. You can pledge any collateral or asset like land, gold, fixed deposits etc. to get a secured loan despite a low credit score.
Joint loan with your spouse or other family members: You can apply for a joint loan with your spouse or family member if they have a good credit score. This will help you in getting the loan application approved.
Employer’s tie-ups with the lender: You can check if your employer has tie-ups with the lender to offer a loan or other banking facilities. Many large companies have corporate relations with lenders to provide these facilities for its employees.
A guarantor: If you can get your friends or family members to act as a guarantor for your loan, then you have high chances of getting the Personal loan approved at Low CIBIL Score.
Other financial institutions: If you don’t qualify for bank loans, you might as well explore other options. Some Non-Banking Financial Corporations (NBFCs) are willing to offer you loans even when banks are not, but at a higher rate of interest.