Personal Loan Low CIBIL Score

How to Get a Personal Loan With a Low CIBIL Score

Here are some of the best ways to get a personal loan while having a low credit score.

Showcase High-Income Levels:

Income levels play as big a role, if not bigger, in establishing a borrower’s repayment potential as their credit score. Banks are quick to approve loan requests of applicants who showcase high and steady income. 

Opt for Secured Loans:

Loans for low CIBIL scores can also be gained against an asset. If a borrower is unable to establish their creditworthiness, submitting an asset assures the bank and encourages them to sanction the loan. 

Submit Joint Applications:

Borrowers with low scores of their own can apply for a personal loan with a co-borrower having high credit scores. The ratings of the co-borrowers act as a guarantee for the bank and assure them of the loan’s repayment.

Apply for Smaller Loan Amounts:

Smaller amounts imply a lesser risk for the bank. Therefore, applicants applying for smaller accounts might get loan approvals with less scrutiny. 

Improve Your Credit Score:

The most important advice for borrowers with low credit ratings is to improve their score over time. Consistently showcasing positive financial behaviour can help improve credit ratings and make them eligible for easy loan approvals. 

Tips to Get a Personal Loan With a Low CIBIL Score

Borrowers with low credit scores must keep these things in mind while applying for a loan:

• Be prepared for high rates of interest 
• Avoid applying at multiple banks as it can hamper your existing ratings
• Apply smartly according to your repayment potential
• Be wise with your collateral while applying for a secured loan
• Read the T&Cs of the loan agreement carefully