Whenever you are applying for a loan, lenders evaluate your loan application based on pre-defined eligibility parameters, CIBIL score is the first filter for evaluating loan applicants.
Some borrowers need a loan in an emergency but due to minimum score, it would be extremely hard for them to avail of a loan with good interest rates.
Avail loan for CIBIL defaulters-Learn how
The CIBIL defaulter is not a legal term used in the CIBIL report. But it is difficult to approve loan applications for borrowers whose credit scores are less than 600 and unable to fulfill their credit obligations in the past.
The best thing is there are options available for loan defaulters also:-
- Employment profile and income- Lenders give more weightage to an applicant’s repayment capacity in comparison to other factors. Employment stability and good income is essential part considered by lenders for evaluating loan applications.
Most lenders prefer applicants working for the government, public sector organizations, and reputed MNCs. So, you must try to improve your employment profile.
- Go for higher interest rates- if you’re a CIBIL defaulter, Banks, NBFCs, and any financial institutions will be more comfortable providing loans at higher interest rates (up to 20%) than usual. If you need funds urgently and your repayment capacity is good, you can go for this option.
- Transaction between peer to peer- There is no middleman like the bank in peer-to-peer lending, there would be a direct transaction between borrowers and lenders. But you have a strong profile for this loan type because lenders need high satisfaction for security.
- Make efforts to improve credit score- If your applications are rejected continuously. Don’t apply for too many loans in less time. It creates a poor impact.
Only they apply for loans instead of putting effort into score improvement.
- Online lending- It is one of the best options generally preferred by the borrowers because it is convenient for everyone. Many new financial institutions easily provide loans with less documentation, but the loan amount is not much higher. They are more lenient than banks and NBFCs.
6. Secured loans & unsecured loans- If your score is so much low apply for both kinds of loans secured and unsecured loans to get your work done immediately. Collateral possession with lenders creates less risk for them.
Get a personal loan immediately for a poor credit score
Getting a personal loan for a poor CIBIL score of less than 750 is more challenging. If you’re following the right steps to come out of this situation. It would be time savior for you. But remember one thing in any situation tries to keep improving your client score.
Following all steps mentioned above to get a loan with a low credit score, don’t apply for multiple credit lines in less time, it will create a poor impact on credit inquiry.
- Keep credit utilization ratio at a constant rate.
- Reduce credit inquiries.
- Never closed unused credit cards because it includes good credit as well.
You can connect for all types of loans. Contact us – Saral Credit