Get 3 Way Personal Loan for Low CIBIL Score

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How to Get Personal Loan for Low CIBIL Score

Getting personal loans is one of the easiest ways to solve your emergency problems. They are unsecured loans that help you keep track of your life when you are in an emergency and shortage of money.

When you want to get personal loans in India, there are so many factors that involve in the process of applying for a personal loan, including your age, monthly income along with monthly expenses, your credit history, your employment category, savings, and many other things that lenders usually take into account before offering the same.

Personal Loan for Low CIBIL Score One of the most important things that you may concern among all these factors is your CIBIL score.

CIBIL Score:

Personal Loan for Low CIBIL Score is the three-digit consumer’s score that explains your credit history that depends on the consumer’s financial behavior. The financial behaviors included in the CIBIL score are loans and repayments, your credit card payments history, and much more. The CIBIL provides India’s one of the leading credit information companies. The score ranges from 300 to 900. When your CIBIL score is high, it will make your credit history much stronger.

When your CIBIL score is low, it will affect your chances of being accepted for a credit card, home loan, and other items. Usually, a credit score of 750 or more is considered the best. People who have 750 or more can expect better approvals for financial services such as loans in India. However, a score over 700 is also a decent one, but getting a personal loan for a low Personal Loan for Low CIBIL Score can be very hard.

When you need to apply for a loan in India, the first most important thing you would check is the CIBIL score, which depends on the history of repayment of personal loans of any type, including a home loan, car loan, or credit card debts. If your repayments are done on time, it will help you to improve your CIBIL score.

On the other hand, untimely payment of dues and EMIs will negatively affect your CIBIL score. As we mentioned above, a personal loan is a loan that deals with emergencies, so if you want to get a personal loan in India, the lender thoroughly checks that you are eligible to get a personal loan and also capable enough to repay the loan on time. Since there is no collateral or security deposit with the lender, it is a must to check your prior history of credit repayment through your CIBIL score.

Factors That Cause Low CIBIL Score:

When you need to get a personal loan in India, Personal Loan for Low CIBIL Score is the most important thing that will check by the lender. If your CIBIL score is not good enough, it is very difficult for you to get a personal loan. However, the following are the common factors that cause a low CIBIL score.

Errors and False Activity:

If your credit report has any errors, such as mismatch in your name, address, PAN card number, etc., the lender has full authority to reject your application for a personal loan. There may also be credit activity against your name in the credit report that you may not have done.

It may happen because of an error by the bank, bureau, or fraudulent activity that has taken place in your name. It will affect your CIBIL score, and it will bring you down. Therefore, it is very important to check your credit report constantly and tell about the errors to the credit bureau instantly.

with the lender, it is a must to check your prior history of credit repayment through your CIBIL score.

Missing EMI:

When you do not pay your loan EMI or credit card bills timely, your CIBIL score will go down, and you might also have to pay a late payment fee.

Apply for Several Loans At A Time:

Whenever you apply for a personal loan in India or want a credit card with any lender, he will see the credit report and check if you are eligible or not. This type of inquiry on your credit report is called a hard inquiry. Each time this type of inquiry will affect your CIBIL score, and it will go down by a few points. Thus, applying for several loans or credit cards simultaneously might badly affect your CIBIL score.

Credit Mix:

A credit mix is a proportion of your unsecured and secured debts. If you have secured loans in India, such as home or car loans, you will be preferred by the lender. On the other hand, you are not considered creditworthy if you have more unsecured loans such as personal loans or credit cards. Therefore, to maintain a good credit mix, try to prepay your unsecured loans and increase the number of secured loans. It will show a good impact on your CIBIL score.

Personal Loan and CIBIL Score:

The relation between the personal loan and CIBIL score is very important. So, before we tell you more about this relation, it is very important to understand both terms briefly. A personal loan is unsecured that you will get for your elementary personal needs. You will get personal loans for various purposes, including holiday trips, home renovation, wedding funds, medical emergencies, and much more.

On the other hand, a CIBIL score proves your creditworthiness. The range of CIBIL scores is from 300 to 900, and it should be noted that if you have a good CIBIL score, the chances of loan approval will be higher. If you hold a bad or low CIBIL score, it will tag you as a defaulter, and there is a great chance that you might default on the loan repayment in the future.

You are tagged as a defaulter because of the bad financial decisions that you may have taken in the past, such as applying for several loans at a time, missing an EMI, and many more. So, it is proven that getting personal loans in India, CIBIL score directly affects your application.

How to get Personal Loan for Bad CIBIL Score in India?

There is no doubt that getting a personal loan for a low CIBIL score is very difficult, but some non-finance companies are available in India that will provide personal loans for a low CIBIL score.

You must know that getting a personal loan for a low CIBIL score becomes tough since greater loan repayment risks surround the lender. However, there are certain methods that you can adopt for getting a personal loan if you have a bad credit history or CIBIL score. Here are some alternative sources options that will allow you to apply for a personal loan in India if you are a CIBIL defaulter.

Ask For Secured Personal Loan:

Personal loans are usually unsecured, but some lenders also provide you with secured personal loans. While getting a secured personal loan in India, you have to provide security of the band, and because of the same, the chances are higher than a lender will give away the personal loan for a low Personal Loan for Low CIBIL Score to you.

Apply With Secure Guarantor:

How to get Personal Loan for Bad CIBIL Score in India?

There is no doubt that getting a personal loan for a low CIBIL score is very difficult, but some non-finance companies are available in India that will provide personal loans for a low CIBIL score.

Ask For Secured Personal Loan:

Personal loans are usually unsecured, but some lenders also provide you with secured personal loans. While getting a secured personal loan in India, you have to provide security of the band, and because of the same, the chances are higher that a lender will give away the personal loan for a low CIBIL score to you.

Apply With Secure Guarantor:

Prove that your Income is good enough for Paying EMIs:

When you earn a good income or have an additional income source, a lender will approve your loan application, even if you have a low CIBIL score. With a handsome amount of income, you can easily repay EMI in the future, which definitely, several lenders look out for you before providing the loan. Apart from good income, lenders are more likely to accept your loan despite a bad CIBIL score if you have a stable job.

Request Your Lender:

If you have been a trustable customer, a person that has maintained a fruitful term with the bank, you can easily apply for a personal loan in India. Although your CIBIL score is not good, banks usually don’t want to lose their existing customer, so requesting the same might work in your favor.

There are great chances that you can avail of the loan at very high-interest rates, or there are some other clauses that your bank will put in front of you, but there is no harm to try.

Ask For Minimum Amount Of Personal Loan:

Applying for a greater personal loan and a low CIBIL score is highly risky for your lender. From the lender’s point of view, these are indicators that you may not be able to repay your loan on time. Therefore, it is good to apply for a low amount of personal loan. In that case, not only may your lender feel more comfortable accepting the application for a personal loan, but also it is good for you, as a lower amount is very easy to repay.

Other Sources:

Apart from banks that might lend you are worth considering, some other sources available in India will allow you to apply for a personal loan for a low CIBIL score. The non-finance companies are more than willing to provide you with a loan, but the bank’s interest rate is very high.

Conclusion:

There is no doubt that a good CIBIL score is very important for getting a personal loan. But all these above-mentioned alternative options will help you get a personal loan for a low Personal Loan for Low CIBIL Score.

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