When applying for a personal loan, your CIBIL score is one of the first things that the lender looks at. This information helps banks and lending institutions to evaluate the creditworthiness and repayment ability of an individual applying for a loan. So, does it mean that people who have a high CIBIL score are the only ones eligible for a loan? No, a borrower can avail of a loan despite having a low score or no CIBIL score.
Let’s have a look at some of the ways through which you can avail of a personal loan without a CIBIL score.
Usually, personal loans are collateral-free and do not require security, but this is only applicable if you have a high credit score. On the other hand, if you have a low or no credit score you will have to offer security on a personal loan. You can pledge any of your valuable assets as collateral on the loan. Doing so will make it easier for you to avail a loan from the lender of your choice.
To approve a loan application the lender always looks for a creditworthy borrower. If you have a stable source of income you can easily avail a personal loan from any lender. Even if you have a low credit score or no credit score at all displaying your salary slip or bank statements as proof of your income. This will help assure the lenders of your ability to repay the loan amount on time.
Applying for a personal loan with a co-applicant or a guarantor will increase your chances of getting the loan approved. However, make sure the guarantor has a steady income and if your co-applicant is a family member they should be informed beforehand regarding your intentions of availing a personal loan. To successfully apply, the co-applicant needs to fulfill the KYC process. The lenders will then run a check through the bank statements and credit history and will most likely approve your loan application if the co-applicant meets the criteria.
If you have a low CIBIL score it's best to avoid applying for a higher loan amount, as the lender may not be willing to sanction your loan since they may doubt your creditworthiness. Hence, it is advisable to apply for a lower personal loan amount since the interest rates charged on the loan will be less. This will ultimately increase your chances of getting the loan approved.
The History not Available (NA) or No History (NH) on your credit report marks the absence of any previous credit activity and credit in the last 36 months. In such cases, you can discuss with your lender regarding your credit inactivity. The lender will take your situation into consideration and it is likely that you will be offered a personal loan at a slightly higher rate of interest.
It is always best to check your credit report as there are possibilities of errors in your credit statement. Such errors can have a direct impact on your credit score. Hence, always check your CIBIL score, and if you find any errors get it corrected as soon as possible. You can file a dispute with CIBIL regarding such errors. This will not only help improve your CIBIl score but will also make it easier for you to get a personal loan.
In case of late updating or wrong entries in the database by CIBIL may result in some borrowers losing out on acquiring loans. Hence, it is necessary for you to keep track of your credit report and maintain a good CIBILl score by making timely repayments. At Bajaj Markets, you can check your CIBIL score for free and also obtain a Financial Health Check Report(FHCR). That will provide you with detailed analysis of your financial health and ways to maintain it in the future. Getting a score check done will give you a better understanding as to whether your personal loan application will be approved or not.
To avail a personal loan, you can simply apply for a personal loan online at Bajaj Markets. The loan application process requires minimal documentation making it an ideal choice for getting a loan. You get flexible loan repayment tenure of up to 12 to 60 months which means you can enjoy the freedom of choosing the duration of your loan tenure. Availing a Bajaj Finance personal loan can help you fulfill a wide range of financial requirements with ease.