How to Get Instant Personal Loan With Low CIBIL Score?

A CIBIL score is an important parameter on the basis of which the eligibility of a loan seeker is decided. Also known as a credit score, this is one of the important factors based on which your personal loan application can be passed or even rejected.

The score ranges from 300 to 900 and generally, a score above 700 is a well-maintained score while the numeric falling below 300 is unacceptable. There more than a single reason why maintaining a CIBIL score is deemed mandate. Even in the possibility of applying for an instant personal loan, a credit score can be the only deciding factor.

Here are a few necessities for a healthy credit score-

Your financial picture: A credit score stands as your financial picture, which is viewed by the lenders and financial institutions. What type of borrower you are is judged on the basis of the CIBIL score. Moreover, there are various reasons why the CIBIL score falls below average. If you have taken a loan in the past and missed timely payment, or you have been running your loan by paying the only minimum payment, then the credit score would fall. Notably, if you did not take any loan in the past, you can still have a credit score.

Reveals your payment history: Payment history accounts for about 35% of a credit score. This reveals whether the borrower has made timely payment of the past loan or not. If the past loan is paid on time, the credit score is likely to be good.

Drawbacks of a low CIBIL score

Rejection of a loan application: The application for any type of loan can be rejected if your CIBIL score is below 300. Moreover, banks and financial lenders see a borrower with a low credit score as a risk. Thus, investing money on them is not considered as an option.

High-interest rate: Even if some of the lenders agree on providing you with a personal loan, the rate of interest would be thus higher than usual.

So, the maintenance of a good credit score is very important. However, what if your credit score has fallen just accidentally? What if you require a loan immediately but your application could get rejected considering the CIBIL score? Well, here is a detailed explanation of how you can get avail a personal loan with a low CIBIL score.

Instant personal loan with a low CIBIL score

Although there might be issues with various types of loan, an instant personal loan can be offered with a low CIBIL score.

Salaried person

For an individual with a minimum salary of INR 25,000, the approval of a personal loan is possible. A personal loan is an unsecured loan, so the lender would check the basic requirements to see how capable you are for the debt payment.

Employed in a reputed company

Your employment history plays an important role in the application of a personal loan. If you are working in a reputed company and have more than two years of employment history, the chances for getting your loan application approved is high. On the other hand, you can also check if the company in which you work has a partnership with any financing company or bank. If you find one, then getting an instant personal loan would be way easier.

Non-banking financial solution

There are some of the financing companies, other than banks which offers loan to the seekers. The processing of an instant personal loan is quite easy with these financing companies are eager to offer loan to the needy. However, the rate of interest for these institutions may be higher comparatively. So, you will need to go through the details before applying for a personal loan.

Take a guarantor

Another alternative is to use the profile of your family member, who have a good CIBIL score to get a personal loan. You can ask a trustworthy member of your family to become your guarantor so that you can get financial assistance.

However, you will be required to meet other eligibility criteria when you are applying for an instant loan. You can find out more about personal loans here. Considering the eligibility criteria, here are a few basic requirements other than the CIBIL score-

• Your identity proof
• Your age proof
• Permanent address proof
• Your income proof
• More than 2 years of employment history
• Proof of citizenship

In addition to these, you must ensure that you will be able to pay the debt you have applied for. The lender will match your income with the EMI that is falling in your account. And they will also check your monthly statement to see what type of customer you are. Maintaining a healthy savings account is also considered as an important requirement. Besides, a personal loan calculator can also be used to check if the monthly installment is affordable or not.