How To Get Personal Loan With Low Cibil Score?

Published on: April 2, 2019

Last Updated on: May 15, 2024

Get Personal Loan With Low Cibil Score

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Are you worried that you will not be provided with a loan for renovating your house or an upcoming wedding because of your poor CIBIL score? There are still ways to easily get a personal loan. But, first of all, let us have a look at the case study which tells us why the cibil score is important.

Financial Case Study:

“My name is Peter, and I have always been a poor money saver. It’s not that I have less income, but my demands were more. That led to a number of loans from credit cards, I never actually wanted. So, when the time came I really needed money to invest in my startup. I went for a cibil score check app and felt the pressure because of the cibil score.

They were low, and no bank was ready to give me a loan on that. I eventually came up with several ideas and got some help from my dad. But I will never forget the amount of hardships that I had to go through just because my cibil score was not up to the bank’s expectation for giving loans. Since then, I heartily advise any person with income, to pay their loans back on time and maintain a healthy cibil score.”

It is evident from this case study that banks do check your cibil score when it comes to giving loans. Your credit history is your credibility as a bonafide customer and hence it is taken very seriously.

So, try to maintain your cibil score at any point. In fact, there are dedicated cibil score check app to let you know about your current score. However, if you fail, then there are other ways as well through which you can easily get a personal loan.

What Is A CIBIL score?

CIBIL, The Organization:

Credit Information Bureau (India) Limited, also known as CIBIL, is India’s first credit information company, which was founded in August 2000. It maintains records of your repayments for loans and credit card bills.

More Insights On Cibil Score:

Banks and credit institutions give these details to CIBIL on a monthly basis, you can check your score on the cibil score check app. This information is then used to create Credit Information Reports (CIR) and credit scores. This score is your CIBIL score, which is given back to the credit institutions to help evaluate and approve your loan applications.

A CIBIL score is a numerical expression based on your credit files. It gives your lender a rough idea of how likely you are to default on loan repayments. But as long as you have a good score, you won’t have to worry about not being able to get a Personal Loan.

Good CIBIL Scores

CIBIL scores range from 300-900. A good CIBIL score ranges from 750-900 and is likely to get your loan request approved easily. If your score is 750 and above, banks and credit institutions consider you creditworthy. Naturally, if your score is less than 750, banks find it risky to provide you with a loan or a credit card.

In a nutshell, the closer your score is to 900, the easier it is for you to get a loan.

But What If You Have A Low CIBIL Score?

Whenever you need to get a loan, banks do a background check on your CIBIL scores.

But sometimes, you might get your loan application rejected even when you’ve actually never applied for one previously. Poor credit scores can either be because of your own poor repayment history, or a complete lack of credit history. This is why banks turn down so many applications.

But there is also some good news.

A poor CIBIL score does not necessarily mean that you cannot get Personal Loans. With the help of peer-to-peer lending, getting an unsecured Personal Loan is not very difficult. Peer-to-peer lending (P2P lending) is a platform where you can contact a lender online.

Since peer-to-peer lending companies run their operations entirely online, they can provide loans with lower overheads.

Bajaj Finserv Personal Loan Eligibility

Bajaj Finserv also ensures that you have a good CIBIL score before providing you with a Personal Loan. The minimum requirements for a Personal Loan from Bajaj Finserv are that you need to be at least 25 years old, and earning a salary that is at least Rs.25000 per month. The minimum salary criteria, however, may differ from city to city.

In case you haven’t applied for a Loan ever before, you won’t have a credit history. However, you can still apply for a Personal Loan at Bajaj Finserv. It only means that you are new to the credit market.

Eligibility When You Have Poor Credit Scores

You can always improve your eligibility to get a Bajaj Finserv Personal Loan.

Maintain a good credit history. Always pay all your EMIs on time or refinance them for a longer tenure. If you have fewer EMIs left on a loan, prepay them and close the loan. This way, you will have a higher disposable income and also stand a chance of getting a loan for a higher amount.

First, try to know how to check the cibil score correctly, because there are several spam sites that will not give an accurate result. In case you need a loan, do not apply for it in several banks at the same time.

Because of this, all the banks run a background check on your CIBIL score at the same time. This will get recorded in your credit report and can also affect your credit score. Having too many credit cards is also unfavorable. Even if you haven’t used all the credit in your credit cards, your overall credit limit will get reduced.

Personal Loans

Going in for secured loans is a smart move. These are looked at favorably and also increase your eligibility.

You still need to have a good CIBIL score to get a good Personal Loan with a low-interest rate. Even if you get a loan with a low CIBIL score, make sure you improve the score by making all your payments on time.

Learn how to check the cibil score and analyze your position in the financial arena. It is only feasible to look for options when you know where you are standing at this point and what your needs are exactly.

8 Tips That You Can Use To Improve Your Overall Cibil Score

8 Tips That You Can Use To Improve Your Overall Cibil Score 

If you are looking for answers to How to Get a Personal Loan with a Low Cibil Score? that can be challenging at times, but you must have the right strategy to follow.  

With the right strategy, it is achievable. You can improve your CIBIL score to get a personal loan on favorable terms and conditions.  

Here are the top 8 tips you can follow to improve your low CIBIL score:  

Give a thorough check to your credit card report. 

Give a thorough check to your credit card report. 

Obtain your credit report copy from your credit bureau and review it carefully. Look for the errors and discrepancies.  

Always try to make your payments on time 

Pay all your EMIs, credit card dues, and others on time. Consolidating your due payments and paying on time can help increase your overall CIBIL score.   

Try to limit your credit card usage. 

If you can keep your credit card balance below 30%, you can successfully maintain a proper credit score.  

Always remember high credit limits can impact the overall credit score.  

You can diversify your credit 

You can use a healthy mix of secured and unsecured credit cards. This can have a positive impact on your CIBIL score.  

So, you can consider using a mix of loan types and credit cards if needed. 

Limit your credit applications 

Applying for credit on a regular basis indicates financial stress, which can decrease your CIBIL score.  

Settle your credit 

If your loans and credit cards are already settled, you must ensure they are properly updated in your credit report.  

Old credit accounts have an impact on your CIBIL score.  

If you are wondering How to Get a Personal Loan with a Low Cibil Score, you must keep your old accounts open. 

Keep a practice of regularly monitoring your business.   

You need to monitor your credit scores continuously. In this way, you can find out the odds and discrepancies that may take place.      

4 Ways That You Can Follow To Get A Personal Loan If You Have A Bad Cibil Score 

4 Ways That You Can Follow To Get A Personal Loan If You Have A Bad Cibil Score 

If you ask me How to Get a Personal Loan with a Low credit score? I would say it is very challenging. But there are a few measurements that I can suggest you follow.   

These measurements can help you to get a credit card despite your low credit score. 

Evidence that can support loan repayment promises  

Always show evidence of your income that can support loan payments. If you can show you have a secure job or steady income flow, you can get a loan approved.  

However, you may become subject to high interest rates. 

Low personal loan amount  

The lender may find you a risky candidate if you apply for a high amount for your personal loan amount.  

If you take out a low personal loan amount, the lender may grant your loan request. In addition, taking out a low amount can help you make a quick repayment.  

Consider applying for a Joint Loan or looking for a guarantor 

If your CIBIL score is low, try to get a co-applicant or a guarantor with a good credit rating. This can help you to get your personal loan a little faster.  

Try to resolve the errors on your credit report

The low CIBIL score may be giving you a hard time getting a loan. It may occur due to the discrepancies in your report.  

Try to look for the faults and resolve the issues with the authorities. This will make your score worthy of a personal loan. 

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Mashum Mollah is a tech entrepreneur by profession and passionate blogger by heart. He is on a mission to help small businesses grow online. He shares his journey, insights and experiences in this blog. If you are an entrepreneur, digital marketing professional, or simply an info-holic, then this blog is for you. Follow him on Instagram, Twitter & LinkedIn

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