Personal Loan: We take loans from others only when there is an emergency. If the loan amount is large, then we take the help of banks or NBFCs. People who have good credit scores do not face any difficulty in taking loans from banks or financial institutions. Yes, banks refuse to give loan to those whose credit score is less than a limit. Here, talking about CIBIL Score, a score of 750 or above is considered better. Those with a CIBIL score below 700 may find it difficult to get a personal loan. People whose CIBIL score is less than 700 and want to take a loan from the bank can adopt some tips. This can ease the way of taking a personal loan.
Is there any flaw in CIBIL Score or Credit Score?
You must check your credit report first before applying for the loan. Many times the credit report is not updated or there may be some wrong entry in it. If you see any such defect, get it rectified before taking the loan.
assure the lender of your ability to repay the loan
If there is a flaw in your credit report that you cannot get rectified, you can assure the lender that you have the ability to repay the loan. Credit reports do not contain details of your salary, your savings or your net worth. In such a situation, it is possible that the lender will agree to give you the loan at a slightly higher interest rate.
Apply for joint loan
If your CIBIL score is low, then you can apply for a joint loan with your father, brother, sister or spouse. The person with whom you are going to apply for the loan jointly should have a high CIBIL score. In such cases, the lender can sanction the loan after assessing the loan repayment capacity.
Apply for low amount loan
If the above mentioned tips are not working, then the second way is to apply for a loan of less amount. If your credit score is low, the lender may doubt your ability to repay the EMI of a large loan amount. If the loan amount is less then you can convince the bank to repay it.
Loan from NBFC or Fintech companies
You should use this remedy at the very end. Many Non-Banking Financial Companies (NBFCs) and new age fintech companies can approve your loan despite having a low credit score / low CIBIL score. However, their interest rates can be higher than that of banks.
