How to get loan with low CIBIL score?

Last year, when I applied for a personal loan my CIBIL score ranged from 600-649. This was considered bad and my loan application was rejected. One of my banker friends said that rejection of loan for low CIBIL score is done by banks to avoid lending to risky borrowers.

Can I Get Loan if My CIBIL Score is Low?

My friend said that the majority of lenders can be reluctant to approve your loan application if your CIBIL score is poor. In comparison to people who have a better CIBIL score, they will probably charge you a higher interest rate if they do this. As an alternative to qualifying for a loan with a poor credit score, work to raise your CIBIL score.

He provided me with a few low CIBIL loan eligibility tips:

• Consistent income:

To increase my eligibility, I’ll need to show that I have a reliable source of income.

• Low debt-to-income ratio: 

To increase the chances, I should keep my debt-to-income ratio low.

• Co-applicant: 

To improve my chances of being approved, I was suggested to apply for the loan with a co-applicant.

Finally, he said that it’s important to keep in mind that raising the CIBIL score in order to qualify for a personal loan is a gradual process that calls for perseverance and patience.

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A CIBIL score is a three-digit number that reflects your creditworthiness. It is calculated based on your credit history, including your repayment record, credit utilization ratio, and the number of hard inquiries on your credit report. A CIBIL score of 750 or above is considered to be good, while a score of 650 or below is considered to be low. But many people feel that they cannot get a home loan on lower CIBIL score. But this is not exactly the case. I will tell you

CIBIL score low how to get loan.

If you are a salaried individual with a credit score of 600 and you need a loan of ₹10 lakh, you may have difficulty getting a loan from a traditional lender. However, you may be able to get a loan from a non-traditional lender, such as a microfinance institution or peer-to-peer lending platform. You may also be able to get a loan from a traditional lender if you offer collateral or get a guarantor. 

How to Get Loan on Low CIBIL Score?

If you have a low CIBIL score, it may be difficult to get a loan from a traditional lender. However, there are a few things you can do to increase your chances of getting a loan. Read ahead to know

how to get loan in low CIBIL score

:

• Improve your CIBIL score. This can be done by making all of your loan and credit card payments on time and in full, keeping your credit utilization ratio low, and avoiding opening new lines of credit unnecessarily.

• Apply for a loan from a non-traditional lender. Non-traditional lenders, such as microfinance institutions and peer-to-peer lending platforms, are more likely to approve loans to borrowers with low CIBIL scores.

• Offer collateral. Collateral is an asset that the lender can seize if you default on the loan. Offering collateral can increase your chances of getting a loan, even if you have a low CIBIL score.

• Get a guarantor. A guarantor is someone who agrees to repay the loan if you default. Having a guarantor can also increase your chances of getting a loan, even if you have a low CIBIL score.

I hope this information is helpful for you in understanding h

ow to get loan if CIBIL score is low.

Hey friend,

I see you want to know ‘how to get loan with low CIBIL score’. Don't worry, there are  a few tips and tricks that you can employ in case you have a bad credit. I will be mostly talking about how to get a personal loan. Take these tips with a grain of salt considering some lenders have their own criteria.

How to get personal loan with low CIBIL score ?

 Make sure your credit report is error free :

Sometimes misreporting or errors on your credit report.is seen. These mistakes take place because the personal record has not  been updated with the latest information

1. Show Evidence of Income to Support Loan Repayments

Just show evidence that you have a secure job with a steady income flow. This will ensure that  the likelihood of your loan getting approved increases by many fields. Do note that you may be subjected to a higher rate of interest.

2. Consider Applying for a Low Personal Loan Amount

Your lender may perceive you as a high-risk candidate if you ask for a high personal loan.

If the amount  availed by you on the personal loan is lower, the lender may be more inclined to grant the loan request.

3. Apply for a Joint Loan or Get a Guarantor

You can get a  co-applicant or guarantor with a good credit rating. This will help you personal loan faster.

These are a few tips on how to get loan with low CIBIL score in india.

If you want to know your loan or how to get a loan with low CIBIL score, keep reading and check out NoBroker Forum.

Good luck on how to get loan with low CIBIL score.

How to get loan with low CIBIL score in India?

To secure any loan whether it be a personal or a home loan you need to have a good CIBIL score. By witnessing how responsible you are with loans and other credits, the lender offers you loans. And the bank identifies how responsible you are with the help of the CIBIL score. There is a range that determines your CIBIL scores, that includes: 

• 300-579: Very Poor

• 580-699: Fair

• 670- 739: Good

• 740-799: Very Good

• 800-850: Excellent 

If your score is anywhere between 300-579, it will be difficult to secure a home loan.

Let us learn how to get personal loan with low CIBIL score.

Well even though reputed lenders such as SBI, HDFC, ICICI will be reluctant to offer you personal loans you can secure the loans from other lenders.

Some lenders offer personal loans with poor credit scores but they may charge a higher rate of interest. Some of the Fintech platforms that provide loans with poor credit score includes

• Credit Sudhaar Finance

• Loanbaba

• Lendbox

• Vintage Finance

• Home Credit

You will need to check out what every lender is offering thoroughly and choose your lenders accordingly. 

Another alternative way on how to get a loan with low CIBIL score is to improve your CIBIL score. I will let you know how to improve CIBIL score in brief:

• Clear all your debts and loans.

• Avoid exhausting your credit limit.

• Maintain your accounts properly.

• Take loans or dents for a longer tenure.

To know more, read the answer on

I hope you now know

how to get loan with low CIBIL score.

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