How to get personal loan with low CIBIL score?

 

Getting a personal loan with low CIBIL score can be challenging, but it's not impossible. Lenders use your CIBIL score to assess your creditworthiness, so a low score can signal a higher risk to them. 

However, there are ways to improve your chances of approval even with a low score. Here are some strategies you can try:

 

 1. Look for Lenders Who Provide Personal Loan with Low CIBIL:

   - NBFCs (Non-Banking Financial Companies): Many NBFCs and fintech lenders are more flexible in their credit assessment and may be willing to provide personal loan with low CIBIL. Some of them focus specifically on individuals with lower credit scores.

   - Banks with Flexible Policies: Some public and private banks may still offer personal loan with low CIBIL scores to borrowers, especially if you have a strong relationship with the bank (e.g., salary account, existing loans, etc.).

   - Online Lenders: Digital lending platforms sometimes offer personal loans to individuals with low credit scores, but they may charge higher interest rates or offer smaller loan amounts.

 

 2. Provide a Co-Applicant or Guarantor

   - If you can find a co-applicant or guarantor with a higher CIBIL score, it may increase your chances to get your personal loan with low CIBIL score. The lender can assess the co-applicant's financial history in addition to your own.

   - The co-applicant can be a family member, spouse, or friend with a stronger credit profile.

 

 3. Offer Collateral

   - If you have assets like property, fixed deposits, or other valuable items, you may be able to get personal loan with low CIBIL score. Lenders are more willing to approve loans with collateral because they have a way to recover their money if you default.

   - With collateral, even a low CIBIL score might not be as big a hindrance, as the lender has less risk.

 

 4. Consider Smaller Loan Amounts

   - If your CIBIL score is low, applying for a smaller loan amount may increase your chances of approval. Lenders may feel more comfortable lending a smaller sum to someone with a low score.

   - Once approved, ensure you repay the loan on time to improve your credit score and increase your chances of getting higher loan amounts in the future.

 

 6. Offer a Larger Down Payment (if applicable)

   - If you're using the loan for a specific purpose, such as buying a car or making a major purchase, offering a larger down payment can increase the chance to get your personal loan with low CIBIL score. This might make it easier for you to get approved despite a low CIBIL score.

 

8. Negotiate with the Lender

   - If you have a poor credit history, try to explain your situation to the lender. If there were genuine reasons for your low CIBIL score (such as medical emergencies or temporary job loss), lenders might take that into consideration, especially if you can demonstrate that your financial situation has improved.

 

 10. Consider a Loan from Family or Friends

   - If you're unable to get a personal loan with low CIBIL score, borrowing from family or friends may be an option. Just ensure that the terms of the loan are clear to avoid any misunderstandings.

 

 Tips for the Future:

Getting personal loans with low CIBIL score is very difficult nowadays, but it is not impossible. We always prefer to consult with a financial consultant or credit advisor regarding this issue, as their experience and knowledge can help you not only to get personal loan with low CIBIL score, but also, they can help you increase your CIBIL score rapidly in no times.

How to remove fake loan from CIBIL Report?

 

To remove fake loan from CIBIL report, you have to go through a procedure of dispute raise in TransUnion CIBIL, here is the detailed guidance to remove fake loan from CIBIL report. Follow these steps:

1. Obtain Your CIBIL Report: First step you should take to remove fake loan from CIBIL report is to get a copy of your latest CIBIL report from the CIBIL official website or from anywhere else where you can obtain that very easily.

2. Identify The Fake Loan: After you obtain your latest CIBIL report, analyse the entire credit report, especially the loan account sections to identify the fake loan accounts properly.

3. Gather Documentation For Evidence: If possible, collect any evidence that supports the loan was never taken by you, this evidential document may be the confirmation letter from the respective lender, account statements, or anything else that supports in your favour. These evidences play an important role to remove fake loan from CIBIL very fast.

4. Raise a Dispute: The next step you have to take is to login to your CIBIL portal again and raise a dispute against the fake loans mentioned in your CIBIL.

You should provide the evidences as an attachment. As these evidences make the process short and fast to remove fake loan from CIBIL.

5. Contact the Lender: Also, you should reach out to the lender associated with the fake loan to inform them of the issue. Request that they investigate properly and correct the record accordingly.

6. Follow Up The Dispute: Monitor the status of your dispute on the CIBIL website. CIBIL usually resolves disputes within 30-45 days.

7. Check for Updates: After the dispute is resolved, review your CIBIL report again to confirm the fake loan has been removed from your latest credit report.

8. Prevent Future Fraud: Consider placing a fraud alert or credit freeze with CIBIL to protect against future issues.

If necessary, consult with a credit consultancy service for additional assistance, as their knowledge & experience will definitely help you to tackle with these kinds of problems for now and in near future.