In today’s world, personal expenses are always registering an upward mark. With the ever-rising rates of inflation, expenses of personal nature, planned or unplanned, can be an upending task to handle.
Those whose immediate needs can be fulfilled only by a loan need to go through this article to find the right way to apply for instant personal loans. Borrowing, lending, or obtaining an instant personal loan can be the easiest way in which a person can take care of their immediate financial requirements. But here lies the challenge! Your credit score is not up to the mark yet.
A low credit score can often diminish your chances of applying for a personal loan. But there still are ways by which you can manage to get a personal loan for a low CIBIL or EXPERIAN score. Here’s how.
#1 – Show Proof of Your Stable Income – Irrespective of whether you have acquired a loan from any financial institution before, having a stable source of income can help your cause massively. If you have not received a loan before this, your CIBIL or EXPERIAN score can be negligible. To overcome that, all you would need is a reputed employer and enough proof to showcase your consistent flow of disposable income.
#2 – Choose a Lower Loan Amount – Sometimes, it might get difficult for a financial institution to sanction a personal loan for a low CIBIL score. It is especially true if you are looking for a high loan amount. So, the most obvious choice for you would be to opt for a loan amount that is not only less but also manageable from your end. A lower loan amount would help establish a trusting bond between the lender and the borrower.
#3 – Fintech and NBFCs to the Saving – NBFCs are known for their greater flexibility in sanctioning loans. Such entities provide not only personal loans without a noticeable credit score but also offer flexible EMI options. In addition to NBFCs, several up-and-coming Fintech companies are willing to offer affordable personal loans.
#4 – Apply for a loan using a co-guarantor/applicant
Having a co-guarantor or applicant helps establish credibility with the lending institution. It does not matter if your loan appeals get rejected for low CIBIL scores; if your co-applicant has a steady and robust credit score, the same loan gets easy approval. Also, if their credit score is stable, the institution can offer you an instant personal loan based on your guarantor’s CIBIL rate.
#5 – Check Your CIBIL Report & Correct Mistakes!
CIBIL Reports usually do not contain misreported figures. However, suppose you have had past lending experiences, paid them off responsibly, and feel something is wrong in your report, send it for a re-evaluation. In that case, you can reconsider applying for a personal loan after evaluating your CIBIL score.
#6 – An NA/NH Consideration for Your Credit Report – An NA/NH report is applied to your credit report when there has been no borrowing transaction in the last 36 months. It is primarily applicable to people with no prior borrowing history. In such cases, a lack of CIBIL rating attributes to an overall lack of transactions. one can convince financial institutions about lending a personal loan for a low CIBIL score as long as the interest rate remains higher.
Hence, if you struggle to get a personal loan owing to your bad credit rating, fret not! The abovementioned ways can help you apply for the same despite your low credit rating. Hope they help.