How to Apply for A Personal Loan for Low CIBIL Score

The Lenders give weightage to cibil score to provide a personal loan because it is an unsecured loan, they need to check your loan repayment eligibility. This score represents the complete details of your credit history, amount, credit duration, take repayment as a responsibility, and other factors.  

Personal Loan for Low CIBIL Score

Generally, individuals who have a minimum credit score of 700 are preferred by lenders and their chances are high to get their personal loan application approved.  

It is not completely true that you may not get a personal loan for low cibil score. Here are some measures through which you can get a personal loan with a bad cibil score as well:-

1. Prove that your income supports loan repayments.

If you have a low credit score but you have various and stable sources of income, it is favourable for your personal loan application approval, You can communicate with them with proofs available to you, it is possible they may charge a higher rate of interest. It also works for individuals who do not have any credit history.

2. Apply for a less personal loan amount

If you are asking for a higher amount with a low cibil score, chances of default in loan repayment may increase from lender’s point of view. A lower amount indicates less risk. It is better for the lender’s comfort to provide a lower loan amount than higher one.

3. Applying with NBFCs and Fintech Digital Lenders

Large Banks and NBFCs do not approve your personal loan easily for bad credit scores. Even if you have a various sources of income with a stable job. But nowadays new startups NBFCs and Fintech lenders provide personal loans to individuals with low credit scores, but at a higher rate of interest.

4. Apply with a secure-guarantor

If your cibil score is low you can easily apply for a personal loan with a co-applicant or a guarantor whose cibil score is good and have a steady income. Co-applicant needs to complete all formalities (KYC & signature). The personal loan application with the secured guarantor reduces the credit risk for the lender because the co-applicant is also responsible for the loan repayment.

5. Rectify errors in your credit reports.

There are high chances that your credit reports may contain errors. To reduce these possible errors you may need to check your report and credit score regularly. If you find any errors you need to report the relevant authority to resolve those errors.

How to get a loan without CIBIL?

Personal loans are unsecured forms of loans it is too much difficult to get a loan without cibil but there are some measures to get the loan without CIBIL:-

·       Give strong income sources and income stability proof.

·       Apply with new NBFCs and fintech they may provide with high-interest rates.

·       Use spouse and parent’s credit card score, if they have a good credit score.

·       Apply for the credit card.

Having a low cibil score or no cibil score is not a big issue now a day. By following all these steps mentioned above. You may get a loan easily without any worries.

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