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When you apply for an instant personal loan, lenders look at multiple factors to determine the borrower’s eligibility. One of the most essential is the credit score. Most lenders fetch your credit report from CIBIL, which is one of India’s oldest credit bureaus.
Your credit score is an indicator of your loan repayment capacity. Ordinarily, persons who have a credit score of more than 750 and are preferred by lenders and most likely to get their personal loan application approved with a good loan amount, tenure, and interest rate.
In case your credit score is poor, mostly large Banks and NBFCs will consider you as a risky applicant, and chances of personal loan application rejection will increase. Some selected lenders may still consider you for a personal loan for low CIBIL. There are a number of methods of availing of personal loan for bad cibil score you must be aware of.
1. Satisfactory level of income- Dealing with a bad credit score is not an easy task. If you have stable and steady income sources, which provide adequate income, to repay your EMIs in full on time, then definite lenders may look at your application favorably and approve you for a personal loan, even with a personal loan for bad CIBIL.
2. Gain financial knowledge- Availing of a personal loan for bad CIBIL score/ personal loan without credit score is one of the biggest problems that you need to tackle. To handle this situation smartly it is essential to gain knowledge based on loans.
3. Reputed employer or organization- Individuals who are employed with reputed organizations are considered to have higher income and job certainty than compared to others. Therefore, lenders may accept the personal loan applications made by those applicants, based on their EMI repayment capacity, job stability, and the reputation of the employers or organization.
4. NBFCs and Fintechs- Those people applying for a personal loan for bad cibil score must note that Banks and reputed NBFCs are unlikely to approve for a personal loan, even if you have a high income and have job stability. However, there are various new-age NBFCs and Fintech lenders that provide personal loan for low CIBIL score, but at a higher rate of interest.
5. Apply with a co-applicant or guarantor- The addition of an earning family member as a co-applicant or joint applicant to the personal loan application reduces the credit risk from the lender’s opinion. Because the co-applicant also becomes equally responsible for the loan payment on time. Hence, adding a co-applicant with a good credit score, may help you get your personal loan application approved faster.
6. Deep research- There are a large number of lenders in the markets, borrowers first have to do deep research about a large number of lenders to find out better solutions for availing the best personal loan with an attractive interest rate.
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