Defaults are very embarrassing. To deal with a default, it is important to understand what default is. When an individual is not able to pay a credit card bill or does not pay the loan monthly installment after 90 days from the due date, it is a default. Even a single default drops your credit score by 50 to 80 points. Therefore it is very important to understand the fact that credit payments play a vital role in maintaining a good credit score. However, a good percentage of people default in their life due to various reasons. After which, they end up facing personal loan apply rejections at the time of need or emergency. However, some ways can help a defaulter get an instant personal loan. A personal loan for default will not be an affordable one but yes, there are ways to get approval.

● Get a loan guarantor - If you want a personal loan at the time of need or emergency. Since you have been defaulting in the past, your credit score will be below 500 or less than that. Let us assume that you have tried a lot to get an instant personal loan but every time you have failed. Therefore, the only way out is getting a loan guarantor who will take responsibility for your debt repayment with his or her good credit score and high income. However, the not-so-good news is you will find it difficult to get a loan guarantor. Therefore, it will not be an easy task for you to arrange one and get an instant personal loan online.

● Increase your source of income if you want to get an instant personal loan. If you need a small amount of money, you can take an instant personal loan even after being in default. This will work only when you have started earning a good amount of money. With a good income, you will be eligible to take a personal loan from a non-banking financial institution, because banks are very rigid when it comes to lending to a defaulter. Therefore to get an instant personal loan online, try and look out for different sources of income to manage a loan approval. Also use a personal loan EMI calculator to compare the different interest rates available in the market.

● Add security, to get an instant personal loan. If you are a defaulter and your chances of getting a loan are low, you need to make your loan secured with collateral or security if you have any property that you do not use. Therefore, when you add a security to a personal loan it becomes secured and the loan provider does not have an issue in offering you a personal loan because there will be no risk. It is applicable only for those individuals having a property they do not use.

● Research well enough for loan providers that even offer a loan to default. In the era of digital loan offering, you will find various non-banking financial institutions with low eligibility criteria. If you find one, you need to check whether it is a genuine loan provider or a scam that will put you further in the trap.

Read More: How to Get the Best Personal Loan in Bangalore

Wrapping up

If you need an instant personal loan online, it is important to meet all the eligibility criteria. The personal loan apply online process for a loan defaulter is pretty different from the one with good eligibility criteria.