A poor credit score might make it more difficult to secure a Personal Loan or other type of loan. A credit score of 600 or more is considered being good. Your loan application is in peril if your CIBIL score is below 600. A negative credit score reveals irregular debt repayments, and lenders will usually turn off urgent loans if you have terrible credit. However, getting a Personal Loan with a poor CIBIL score is not impossible. However, the interest rates on Personal Loans issued to those with bad credit may be higher.
In this article we will list down all the steps that can make it easier for you to get a personal loan in India despite having a low credit score.
Have a good income
Despite being a CIBIL defaulter an applicant with a good income can acquire a personal loan. Your large wage determines your capacity to repay a personal loan, thus it is doable. In comparison to applicants with an average income, banks are more likely to trust candidates with a greater income.
Request a lesser personal loan amount
If your credit score is poor, then you must apply for a loan that has a lower loan amount as it is easier to repay, and the lender may be willing to take a chance on lending you the money. Hence it is suggested to apply for an amount of loan that is low.
Know Your Employer's and Lender's Relationships:
If you work for a reputable company, it's possible that your company has a relationship with the lender. As a result, In this instance, the bank may be willing to lend you money despite your poor CIBIL score. Even when you have a good relationship with the banks, then it may be possible to get a personal loan in India despite having a low credit score.
Use a guarantor to apply.
Lenders are more likely to accept Personal Loans for applicants with poor CIBIL ratings if they can secure a co-signer or a guarantor. A guarantor with a good credit score and a steady source of income might help you get a loan faster.
Getting a loan with a low CIBIL score is no longer a pipe dream. If you have a CIBIL score of above 600, you may now get a personal loan from Buddy loan at affordable rates, with minimum documentation and additional benefits.