Can you get a personal loan with low CIBIL score?

Many lenders will look at your CIBIL score, as well as other qualifying criteria, when assessing your personal loan application. Can you obtain a loan if your CIBIL rating is bad or low?

The Credit Information Bureau (India) Limited is what the name CIBIL means. Other than TransUnion CIBIL (its formal name), there are other credit agencies such as Experian, Equifax, and CRIF High Mark.

The credit score is a three-digit number ranging between 300 and 900 that indicates the borrower’s ability to repaying debts. This score is calculated from borrowers’ prior borrowing, spending, and repayment history, which are provided to these credit bureaus by financial institutions.

Here are some ways to get a personal loan if your CIBIL score is low:

Choose Collateral-based Loans
You can obtain loans by going for secured loans, which are backed by collateral such as stocks, real estate, fixed deposits, jewelry, and other items. Almost all lenders would be willing to provide an immediate loan if the borrower’s assets are pledged as security.

Find a Guarantor
Finding someone to act as a guarantor is the fastest method to get a loan without a credit score. A family member, friend, coworker, or confidante might be able to serve as a guarantor. Of course, the guarantor must have a good credit score in order for the applicant’s loan to be accepted quickly.

Apply with a Co-applicant
Another approach to guarantee an immediate loan without problems is to have a co-applicant with a steady income. The co-applicant, must be someone in the family who was informed of the applicant’s requirement for an loan before applying.

Can’t go with any of the above options?
If none of the above options are feasible for you, then you should consider reducing your current liability in terms of personal loans and credit card outstanding. You can opt for loan settlement which will reduce your liability and allow you to become debt free.

Loan settlement is a process where you negotiate with your creditors to reduce the amount of money that you owe. The settlement will be based on the amount of money that you can afford to pay each month.

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