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.