When you want money for immediate, short-term expenditure, such as a trip itinerary or an emergency, you can apply for a personal loan, which is an unsecured loan. This loan’s acceptance depends on several variables, including income level and CIBIL score. This blog post discusses the value of a CIBIL score and how someone obtains a personal loan for a low cibil score in India.

Choose NBFCs and Financial Digital Lenders

Anyone seeking an option with a Personal Loan for a low cibil score should be aware that even if they have a high disposable income and steady work, most big banks and NBFCs are unlikely to accept them for a personal loan. Although they charge high-interest rates, several modern NBFCs and Fintech lenders provide personal loans to borrowers with bad credit.

Provide evidence of your income

Despite having a bad credit score, a raise in pay, or even having a second source of income might persuade a lender to approve your loan application. Additionally, your chances of having your loan accepted rise if you can provide proof that you have stable employment with a consistent income. Please be aware that there’s a chance your interest rate will increase.

Choose a lower personal loan amount

If you request a large personal loan with a poor CIBIL score, your lender could view you as a high-risk applicant. Your likelihood of missing a loan payment is higher from the perspective of the lender. Lenders could be more likely to approve loan requests when the personal loan amount is lower. Additionally, paying back a smaller sum will be much simpler.

Put together a joint application

Lender credit risk is decreased when a co-applicant with a source of income is included in the personal loan application. It is due to the co-applicant sharing equal responsibility for loan repayment. Therefore, it could be possible for you to increase your chances of getting your loan application accepted if you can include a co-applicant with a decent credit score.

Ask your lender to put a NA or NH on your credit report

If you haven’t used credit in the past 36 months, it will appear on your credit report as History Not Available (NA) or No History (NH). You can speak with your lender about your inactive credit in such circumstances. The lender will consider your position, and you’ll probably receive a personal loan offer with a somewhat higher interest rate.

In Conclusion

It’s not difficult to obtain a loan even with a poor CIBIL score. Borrowers have several possibilities for obtaining a loan with a low CIBIL, given the wide variety of offers and programs available on the market. To locate the finest personal loan interest rates in India, spend some time shopping around if you’re searching for a loan with a poor CIBIL score.