Thursday, October 28, 2021

Cibil Score: Process to Take a Personal Loan for a Low CIBIL Score

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Are you willing to apply for an instant personal loan to help you meet your diverse needs? If yes, you need to maintain a robust CIBIL score. It is because a personal loan is unsecured, and there is no need to put any collateral. 

Having a good CIBIL score can help you get the approval fast and at a lower rate. 

But what if your credit score is poor? Can you still avail of an instant loan without CIBIL? 

Yes, that’s possible! All that you need to do is follow a few tips. Read on!

What is a credit score?

The credit information bureaus determine each individual’s credit score after assessing a host of factors. Thus, credit score essentially quantifies a borrower’s merits and demerits. 

This score ranges from 300 – 900. It allows financial institutions to understand the level of risk applicants carry before advancing any form of credit facility to them. That’s part of the reason how CIBIL score is crucial for personal lending.

In 2017, the Reserve Bank of India made it mandatory for each of the four credit information bureaus to provide a credit report and credit score for free once every year, and also offer online checking facilities. 

Here’s how you can get an instant loan without CIBIL

  • Prove that your income can support upcoming EMIs

If you have recently received a pay hike or have an additional source of income, a lender may consider your loan application. Yes, it is even after your credit score is poor. If you can communicate to the creditor that you can support EMIs, you can get an instant loan without CIBIL

  • Ask for the lowest possible loan amount 

If you apply for a higher amount with a low credit score, it may indicate more risk to the lender. A lender may assume that you may default if you are given a large loan amount. If you apply for the lowest possible loan amount, a lender may feel comfortable granting the approval. Why? A small amount is easier to repay than a large figure. 

  • Apply with a co-applicant 

One of the best ways to apply for an instant loan without CIBIL is to do that with a co-applicant. You can do that with a co-applicant whose credit score is robust. If you can also bring a co-guarantor, it may help you get the loan approval faster. 

  • Pledge collaterals

You can also offer to submit anything as collaterals or security. It is one of the best things to do to avail of an instant loan without CIBIL. When you keep anything as collateral, a lender may consider your application. It is because, in this case, it may assume that you will pay on time as you won’t like to let go of your collateral. 

  • Correct mistakes in your credit report 

It is possible that your CIBIL report may have some errors keeping it lower. If there are errors in it, it can affect your loan candidate for no fault of yours. Thus, it becomes a must to check CIBIL score before applying. If you have made timely repayments and your credit score is still lower, it may be because of errors on it. Thus, you need to ensure to correct the mistakes. If there are issues, you can go for CIBIL report correction on the official website. It is also possible to check CIBIL dispute status after having raised a ticket to know the progress. Once you raise a dispute claim on the CIBIL website, it may take up to 30 days to respond to it. Once issues are resolved, you may find your new credit score updated, and it may help you get the next loan approval. 

You just went through some of the best ways you can apply for an instant loan without CIBIL. You can implement one of them as per your preferences and get going. 

Bajaj Finserv comes with pre-approved offers on personal loans, home loans, business loans and more. It is to ease off the processing of the loan. 

You can check your pre-approved loan offers today by sharing your basic details such as your name and mobile number.

 

Must Read: What is a Personal Loan And What Are Its Different Types?

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