A personal loan is a real life-saver when money is required urgently and all other borrowing channels are beyond reach. A personal loan does not ask for any collaterals and is approved based on the credit score and the financial history of the applicant. We all know that any kind of loan in India is sanctioned only after checking the CIBIL score. That is the main parameter that decides whether or not an individual is eligible for a loan.
What is a CIBIL score?
A CIBIL is a three-digit score ranging from 300-900 that decides the credit worthiness of an individual. 300 being the lowest in the scale and 900, the highest. The CIBIL report has the entire financial history of an individual starting from active to inactive loans. It also has the entire repayment history of the applicant from monthly payments to defaults (if any). Therefore, it is imperative to have a good CIBIL score as it is checked before processing any category of loan. You can also check CIBIL score for free using our smart financial health check tool.
How to get a personal loan without CIBIL Score verification?
Normally, banks and NBFCs (non-banking financial company) do not offer loans to anybody without a financial history or a credit score. In such cases, the applicant must take alternate steps to get at least some kind of financial assistance.
Here is the options to get personal loan without CIBIL Score:
- Take a loan by pledging an asset. Mortgaging gold or a house may get you a loan as the lender will have your asset with them. This is called a secured personal loan.
- If you have a savings account or a salary account with a bank for a long time, apply for a credit card.
- Big companies normally enable loans for their employees via established banks if they have a good working relationship. Make the most of this opportunity and go for Bajaj Finserv personal loan.
Personal Loan For CIBIL Defaulters
CIBIL score plays a crucial role in determining your loan eligibility. A high CIBIL score will enhance the chances of your loan approval, whereas a low CIBIL score may lead to the rejection of your loan application. Though availing a loan with a low CIBIL score is difficult, it is certainly not impossible.
Many reputed financial institutions offer personal loan for low credit score. However, it is to be noted that lenders may charge a comparatively higher interest rate while providing loans to such borrowers. Therefore, to avoid this, it is always advisable to maintain a high credit score while applying for a loan. A high credit score will not only increase the loan eligibility but also help borrowers avail a higher loan amount at a reduced interest rate.
Lastly, make sure that you check CIBIL score before applying for a loan. This will reduce the rejection chances of your loan application.
Improving credit score
- Clear the outstanding amount of your credit card bill, only paying the minimum amount does not suffice. Clear the entire bill to improve the credit score.
- Maintain a good credit utilization ratio and do not get too close to the credit limit or exhaust the limit of your credit card.
- Do not apply for a credit card several times if it has been rejected once. Too many applications show desperation and the lenders hesitate to give loans such applicants.
Alternate ways to get personal loan
You can borrow money from peer to peer lending. Peer to peer lending are organisations that enable people to borrow money from other people from their platform without the involvement of any middlemen. This trend started in 2005 and has seen a significant growth since its inception.
If you’re hesitant to borrow a loan on your name because of poor credit score. You can apply for the same on your spouse’s or parents’ name if they have a good credit score.
Have a poor credit score and need personal loan? You can still get in touch with us on our dedicated customer service platforms. Speak to us at Finserv MARKETS and benefit from the features like quick disbursement, low EMI, minimal documentations and a list of other features. What’s more? Your online personal loan application can be approved under just 3 minutes and the loan amount will be credited to your bank account within 24 hours! Apply for Bajaj Finserv Personal Loan with us, today!
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