Picture this! You wanted to avail a personal loan to get funds for expanding your business, but your loan application was rejected by the lender! What would you do now? Would you apply for another loan with another lender?
No wait, it may be possible that your loan application has been rejected owing to poor cibil score. But you don’t need to worry as you can always get a personal loan with low cibil score. Read on and explore more!
- Show evidence to support your claim that you can manage repayments
So what if you have poor cibil score? If you have a decent package or have some additional sources of income, then your lender may consider you safe. Can you prove to your lender that you have a steady income source with a secure job? Then it may sanction your loan application. Even though you may get a personal loan with bad cibil score, but you may have to deal with higher personal loan interest rates.
- Try to apply for the lowest available loan amount
Having a bad credit score and applying for a higher loan amount may lead to rejection. It is because a lender may consider you a high-risk candidate who will default on EMIs if they approve your request. But if you apply for the lowest available loan amount, then the lender may look to grant the loan application. What’s more, you will also find repaying such amounts not taxing on your monthly outlays.
- Apply for a joint personal loan or with a guarantor
If you want to get a personal loan with a bad cibil score, then you can get a guarantor or co-applicant with a good cibil score. It can help you get the loan approval swiftly. When the lender sees that you have applied with a co-applicant or a guarantor with a good credit rating, then it may sanction the loan request. But once you have availed the loan, it should be your duty to repay it within the tenor. It is because not doing it will mean hampering the cibil score of your co-applicant, along with yours.
- Check for errors in your credit report
Many a time, you may notice an error in your credit report for issues that you may not be responsible for. And it may lead to a poor cibil score. Hence, before you apply for a personal loan, make sure to check your credit report. If there are errors, then it is your duty to get it resolved. It will help your cibil score go up. if your cibil score is good you easily avail low interest personal loan. Once done, you can apply for the loan and avoid getting rejected.
- Apply with a known lender
Another thing to get approval for a personal loan despite having a bad credit score is applying for it with a lender you are associated with for a long time. It could be your savings account, salaried account, and credit card banks. Since you are their customer already, they may not want to lose you and may approve the loan. However, it may be the case that you may have to manage higher personal loan interest rates.
If you can consider the discussed factors, then you can get a personal loan with bad cibil score without further issues.