How To Get Loan With Low CIBIL Score? It’s Easier Than You Think

Anisha Mehta wants to avail general purpose (personal) loan. But she is a little worried because her application got rejected 2 times due to her poor CIBIL score. The reason for her low CIBIL is a delay in previous repayments. Now her credit score is 600. Is she still eligible for loan for poor CIBIL score?

What are the most common causes for loan for poor cibil score?

In most cases, people do not aware of why they have a low credit score till the application gets rejected. The same things happened with Anisha, first of all, she needs to find out the possible causes while applying for a loan for poor cibil score.

·        Default in payment and have more credit card dues.

·        Credit utilization ratio is higher than required.

·        Multiple active debts that enhance the debt-to-income ratio.

·        Previous rejection of any loan application due to poor credit history.

·        Applied for multiple loans with many lenders in a short duration.

·        No or inadequate credit history.


how to get loan with bad cibil score


How to get a loan with poor cibil score of 600 or below

The cibil score is a core factor in determining the rate of interest, loan amount, and tenure for Anisha. To become eligible for more loan amounts, this is how she can apply for a loan for poor cibil score.

·        Show repayment capacity proof: Financial institutions or Lenders interested to know yours per month regular income. Growing income increases the chance of your personal loan application getting approved. Anisha had a steady income for one year, so it is favourable for her.

·        File timely income tax returns: When you need a loan for poor cibil score, If you have filed your taxes regularly for the last few years, lenders will take it very positively, generally people try to evade tax, but if you’re paying this it represents your responsible attitude.

·        Provide employment and knowledge proof: Anisha needs to show her previous employment to the lenders and the skills and knowledge she has, it shows her capability to lenders for being employed for the long term.

·        Satisfactory available bank balance: For applying for loan for poor cibil score, a satisfactory balance is always kept in your bank account to pay EMIs after deducting expenses. Try to manage your expenses carefully.

·        Make credit mix balanced: If you’re applying for loan for poor cibil score, try to keep the ratio of secured or unsecured loans to 60:40. It will be easier for you to get quick loan approval.

·        Keep your principal amount low: When you’re applying for a loan with bad credit, keep your principal amount low, it reduces your EMIs.

How to get a loan with poor cibil score [FAQs]

1. How can I get an immediate loan with bad credit?

When you don’t have more time to improve your credit score, need a loan urgently.

·        Apply for a collateral loan with alternate lenders.

·        Joint loan applicants (relatives, spouse, etc).

·        Income stability proof.

2. What score is considered as good or bad for loans?

A cibil score of less than 600 is considered a low or poor cibil score. A score between 750-900 is considered good, these category borrowers get loans fastest at competitive rates.

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