Lacking sufficient financial knowledge has always been an issue in India where individuals do not have a fair understanding of essential components like interest rates, CIBIL score, eligibility requirements, etc. For example, although a credit score determines a borrower’s creditworthiness, most borrowers are unaware of its importance. As per a survey, approximately 52% of the borrowers do not consider this aspect before obtaining a credit which often leads to loan rejection.
Fortunately, there are effective ways through which individuals can acquire a personal loan with low CIBIL score. Read on to know about it.
How To Avail Of A Personal Loan With A Low Credit Score?
Every lender conducts a strict inquiry to assess a borrower’s credibility to repay the due amount. Since personal loans are unsecured borrowing options, the risk of lending is also higher. This crucial factor makes it difficult for the borrowers to obtain credit with a CIBIL poor score.
Therefore, individuals who are looking for a personal loan with low CIBIL can follow the suggestions mentioned below to improve their chances of obtaining a credit facility.
- Display good repayment history
Intending borrowers can avail of personal loans with low CIBIL by manifesting a credible repayment history. Borrowers who make on-time repayments maintain a healthy relationship with lenders have an increased chance of loan approval in these scenarios.
Moreover, individuals should adopt a few habits to improve their credibility as a borrower. This involves making prepayments, maintaining credit utilization ratio, avoiding making multiple loan applications at once, etc. This will improve the credit profile and allow borrowers to negotiate for low interest personal loans with a lender.
- Apply for low loan quantum
Lenders may consider borrowers high-risk candidates if they apply for a personal loan of a higher amount compared to their eligibility. From a lender’s perspective, the chances of defaulting here are more.
Therefore, it is ideal to apply for a lower amount as per their financial capabilities; it will enhance their chances of loan approval. Besides, the loan repayment will be far easier in such cases.
In this regard, borrowers can use a personal loan calculator to determine the EMIs beforehand, which will help them to plan their finances effectively. Borrowers can use this online tool by inputting the principal sum, interest rate, and tenor and receive accurate results within seconds.
- Include additional income source
Revealing any additional income source, including investments, rents, etc., can be a great way to avail of a personal loan with a low credit score. Submitting documents that substantiate steady income and employment will ensure timely repayment from the borrower’s side and allow them to obtain the best personal loans possible.
- Include a co-applicant
Customers with a poor credit score can apply for a personal loan by involving a co-applicant. Ideally, including a credible and reliable fellow applicant boosts the application.
A co-applicant with a good CIBIL score enhances the chances of quick loan approval. Therefore, it is advised to check the credit profile of a co-applicant before applying. It will also help them to secure better loan deals.
- Check credit report
There are certain instances where minor mistakes can reflect poor scores in the credit report. This can lead to loan application rejection or create issues during credit approval. Hence, it is essential to keep a check on the credit report. Besides, borrowers can raise a request if they determine any issues. However, prospective borrowers must adopt certain measures to improve if their CIBIL score is getting down.
With a healthy CIBIL score and repayment record, borrowers can avail better loan terms and offers. Moreover, they can also request lenders to levy competitive interest rates on personal loan. For this, they can contact reputed NBFCs like Bajaj Finserv’s personal loan contact number to learn more about available loan offers.
Besides, these leading financiers also extend customized pre-approved offers to eligible borrowers that significantly ease the application process and save time. These offers are available on a wide range of financing options such as business loans, personal loans, credit cards, etc. Therefore, borrowers can check their pre-approved offer by mentioning their essential credentials.
To conclude, the aforementioned tips will aid borrowers to obtain a personal loan with low CIBIL scores. However, it is always wise to check the terms and conditions and adopt certain ways to improve loan eligibility.