Hela April 21, 2019

As a personal loan is an unsecured loan, its interest rate, terms, and other features that you can enjoy are heavily dependent on your credit score. A good credit score, one that’s 750 and above, can help you bag the loan amount you need at an affordable interest rate from a reputed lender. However, in some instances your credit score may not be up to mark or you may not have a CIBIL score at all. Despite this scenario, you can still avail a personal loan for low CIBIL score. Here is how you can ensure you get approval.

1. Look for Credit Errors and Rectify Them
Having a serviced loan listed as open or an incorrect credit limit can do a lot of damage to your credit score. Similarly, if a wrong PAN number is mentioned, someone else’s credit history will feature on your credit report! Keep a look out for such errors and raise a request to get mistakes resolved. This way you can improve your credit rating and get a CIBIL score to avail instant personal loan.
2. Increase Your Income
If possible, find a way to increase your income to show lenders that you are more than capable of handling loan repayments. Ask your employer for a possible raise if you have been working with the company for a while or consider going after opportunities that promise you a higher salary. You can also consider taking a part-time job to boost your total income and assure the lender that your debt-to-income ratio is within the accepted limit.
3. Apply Jointly
When you take a loan jointly, with a co-applicant, you can showcase a greater repayment capacity and give financial institutions the assurance it seeks. More importantly, if your co-applicant has a good credit score, it can help make up for your lack of score and culminate in loan approval. Ideally, avail a joint personal loan with a family member or your spouse to manage the loan in an easier way.
4. Look Beyond Your Bank’s Offerings
While you may consider your bank to offer you the best loan at affordable interest rates, take a look at other lenders such as NBFCs. Typically, they are more flexible and may consider giving you a loan despite a lower CIBIL score. In fact, you can access many benefits by choosing an NBFC. For instance, Bajaj Finserv Personal Loan offers online applications, online account management, approval within 5 minutes, disbursal within 24 hours, and a flexi loan facility. This allows you to borrow as you need to from the sanction and pay interest only on the used amount. Further, you can opt for interest-only EMIs and repay the principal at the end of tenor.
5. View Your Pre-Approved Offer 
While you can use a personal loan eligibility calculator to check your eligibility without damaging your credit score, consider viewing a pre-approved offer before you apply for a personal loan. Reputed lenders offer customised loan offerings that are created to suit your unique requirements and your financial abilities.
Keep these interesting facts about CIBIL score in mind if you are seeking a personal loan for low CIBIL score or no credit score. Remember to plan your repayment in advance to ensure that this loan doesn’t impact your score negatively.
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