A Personal loan is the most conducive and convenient credit scheme to manage all the unforeseen and immediate cash needs such as a medical problem, insufficient working capital etc. However, availing the said facility is a matter of creditworthiness and the loan eligibility of the applicant, which is likely to be in a poor state for a majority of Indians.
Creditworthiness is subject to the applicant’s CIBIL score, which takes years to build. Also, you must know that you need a score of 750 and above to be eligible for the loan, in fact, to be even considered for one. Honestly, most Indians lack in that aspect, and thus, might not qualify for a personal loan in normal circumstances. However, here are some tips that can help you avail a personal loan even with a bad CIBIL score.
Share an income certificate: Share an income certificate that can convince the lender of your repayment capacity or ability.
1) Find a co-guarantor: You can find a guarantor or co-signer to avail a loan for yourself, based on the creditworthiness of someone else. In such circumstances, the co-guarantor becomes responsible to ensure the repayment is done in a timely manner and in full.
2) Ask for a lesser amount: Simply lowering down your loan expectations can help you get considered for the loan even with a bad score.
3) Request the lender to consider your application with NH or NA: NH or NA indicates that there is no credit history in one’s CIBIL report. If you haven't availed or been a part of any credit activity in the last 3 years, you can ask the lender to consider your application with NH or NA.
Read Also: How to Get a Personal Loan with a Bad Credit Score?
Last but not least, it is very important for you to choose the right lender to approve your loan application. So, follow the prerequisites and find the right scheme and lender for the loan.
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.