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How to Get Loan with Bad Cibil Score

Loan for low cibil score

  • CIBIL score is important for lenders because no collateral securities are involved in it.

  • The additional and multiple sources of income increase the chances of getting the loan in case of a low cibil score.

  • Irrespective of application status you must need to improve your cibil score.

  • Apply for lower amount increases the chances of approval of loan application.

  • NBFCs and Banks grant loan for low cibil score, the rate of interest will be higher if the loan amount is lower.


How to get a loan for a low cibil score

Getting a loan with a low cibil score is one of the major challenges it includes higher interest rates also. A few ways are mentioned below which can help you to avail low CIBIL personal loan.

  1. Go for NBFCs- The non-banking financial companies generally have more lenient policies than the bank for persons with low cibil scores. Applying with the NBFCs is the best way in case of any financial emergencies.

  2. Select secured loans- If your cibil score is low, applying for a loan with a lower score makes lenders more comfortable with collateral securities such as land, gold, fixed deposits and, others.

  3. Increase your CIBIL score- No one is going to edit cibil score. To increase your cibil score you need to review your record, clear all payments on time and manage all credits effectively. You can check your credit score by using the CIBIL score calculator.

  4. Provide evidence for income- You need to show all relevant proof of income statement to get a loan. The Bank statement is one of strong proof. You should get a loan very easily with these proofs.

  5. Apply for a lower amount- Higher amount leads to higher risk from the lender’s point of view, a lower amount indicates lower risk. Chances of repayment of loan increase in less duration. You need to build trust again with responsible payment ability.

  6. Apply through the guarantor- A Guarantor with a high cibil score enhance the possibility of getting loans when required in less time.

  7. With the help of the employer- If the company and employer have tie-ups with any bank and NBFCs you can apply to that bank.

  8. Joint loan application- If you have any family members, relatives, or friends with high cibil scores go for a joint loan quickly, it increases the chances of getting the loan application approved faster.


Minimum cibil score for a personal loan

A Personal loan is a collateral-free loan or unsecured loan to calculate your eligibility to loan repayment cibil score is one of the major criteria. The minimum cibil score for the personal loan must be 700 or more. It is considered an excellent cibil score.

But you may also get a personal loan with not too much difficulty when your cibil score is between 600 to 700 because it is considered a fair cibil score.

But by following various factors mentioned above you may also get a loan with a low cibil score, you just need to decide your credit requirement as per your income because cibil score is calculated as per your credit history.


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