Personal Loan for CIBIL Defaulters
A personal loan is a loan of convenience that you can use to fund a range of requirements without pledging any collateral. You can avail this loan to fund vacations, home renovation, wedding expenses, and more. Though it seems easy to avail a personal loan, especially those available online, lenders approve your loan application only if you have a good credit score. Credit bureaus like CIBIL give you a credit rating based on your credit behavior.
A score of 750 or more is considered to be good and bags you a more competitive interest rate and other terms on a personal loan. In contrast, a score below 750 implies that you are not a creditworthy borrower and may default on loan. To make up for this risk, lenders charge higher interest rates. Sometimes, they may even reject your loan. But fret not, because there are certain ways by which you can get a personal loan with low CIBIL score.
However, if you are worried about being a CIBIL defaulter, you needn’t as there is no such list of defaulters that is maintained by the credit bureau. Instead, Improve your CIBIL score and Apply for a personal loan that has a simple eligibility criteria.
Here are some things to do.
-> Apply For a Secured Loan
Lenders may not be too eager to provide unsecured or collateral-free loans if you have a bad CIBIL history and a low score. This is because a low score indicates a higher risk. So, your best bet would be to apply for a secured loan instead. The collateral that you pledge to avail such a loan serves as a cushion that a lender can fall back on in case you default on repayment.
Thus, lenders are reassured and your chances of loan approval increase despite a bad CIBIL score.
-> Apply With NBFCs
You can also borrow a personal from non-banking financial companies. Unlike banks, these lenders may have lenient guidelines and eligibility criteria. Be cautious about the interest charged and the terms of repayment to ensure you have a stress-free borrowing experience.
Top NBFCs like Bajaj Finserv require you to conform to simple eligibility criteria that increase your chances of approval and keep all fees and charges pocket friendly. When you opt for a personal loan from Bajaj Finserv, you can access high-value loan at nominal rates and repay in EMIs spanning from 12 to 60 months.
As a salaried individual, you can get a loan of up to Rs.25 lakh from Bajaj Finserv. What’s more, by choosing a flexi personal loan, you can save up to 45% on your EMIS. This is because you can borrow multiple times from your sanction and pay interest only on what you actually withdraw. In addition, you can plan your finances better by paying interest-only EMIs throughout the tenor and repaying the principal at the end. Additionally, you can benefit from minimal documentation, quick approval, and disbursal within 24 hours.
-> Add Co-Applicant or Guarantor
You can also avail a personal loan by applying with a co-applicant or adding a guarantor to your application. It is important to add a co-applicant or guarantor who has a regular source of income and a good credit score as it reassures the lender that in case you default, they can still recover the dues from the co-applicant or guarantor. Therefore, your approval chances increase and you can get a personal loan despite a low CIBIL score.
-> Disclose All Your Sources of Income and Salary Hikes
Even if you have a low credit score due to your past repayment and history, chances are that your income has increased due to a recent hike. This will increase your capacity to repay the loan and thus, may persuade the lenders to approve your personal loan application. Also, don’t forget to disclose your high-value personal assets such as home or land and income from all sources such as rent, freelancing, and more. This also reassures lenders that you will be able to repay the loan on time and increases your chances of approval.
-> Check for Errors in CIBIL Report and Get Them Corrected
It may be possible that you have a bad or a low credit score as a result of errors in your CIBIL report. Thus, it is important to check your credit report and request the credit bureau to address the errors before you apply for a personal loan. These errors may be due to delay in updating the latest information in your records, such as a closed loan account or a paid credit card bill. This will boost your CIBIL score and then you can apply for a personal loan.
Availing a personal loan is not impossible even if you have a low CIBIL score. All you have to do is increase your score by repaying existing debt on time or building your credit history with a secured loan. To enjoy fast access to finances and instant approval on your personal loan, check your pre-approved offer right away.