Are you soon going to apply for a personal loan, but found that you have a poor CIBIL Score? You also don’t have time to wait and improve the Credit Score and then apply for a personal loan as your needed funds urgently.
What will you do? Will not you apply for a personal loan fearing rejection?
If you are stuck in such a situation, here is a quick post to help you get a personal loan for low CIBIL Score. Read on!
Lenders see CIBIL Score as the first parameter while processing your personal loan application as it proves your creditworthiness. However, sometimes, you may need a personal loan urgently and may not have a satisfactory Credit Score.
Measures to take to get a personal loan for low CIBIL Score
- Prove that you are earning well to support the EMIs
If you have recently received a salary hike or have some other sources of income, then you can provide their proofs to a lender. Such proofs may prove that you have the required repayment capacity to repay the personal loan EMI without roadblocks. In such cases, a lender may approve the loan application despite having a poor CIBIL Score at a reasonable rate of interest.
- Apply for a lower loan amount
When you have a lower CIBIL Score, you should not ask for a higher loan amount as it may indicate risks to the lender. Lenders may see that you may default if you are given a large loan amount and hence, your application may be rejected. Thus, try to ask for a lower loan amount which a bank may feel confident about, as a lower figure is easier to repay.
- Apply with a co-applicant
If you have a poor Credit Score, you may apply for a personal loan along with a co-borrower with a higher CIBIL Score. If your co-borrower has a better income and repayment history along with a higher Credit Score, a lender may sanction the loan.
- Correct mistakes in your Credit Report
There may be times when there could be mistakes or errors in your credit report. Hence, if you can wait before applying for a personal loan, get your hands on the errors and get it resolved. All prospective borrowers should keep checking their Credit Scores from time to time to get all mistakes which is not yours resolved. It is vital to do as not correcting it may leave your CIBIL Score in negative because of your no faults. Resolving the mistakes will also help to boost the CIBIL Score and make you a better loan prospect in the future.
Some of the easier methods to get a personal loan even with a bit low CIBIL Score are now discussed to help you follow and get quick approval to cover your needs.
Bajaj Finserv offers pre-approved offers on personal loans, home loans, business loans, credit cards, EMI finance and other financial offerings. When you do that, it simplifies your loan procedures and makes it faster for you.