Personal Loan: How to get a quick loan when you have a bad credit score?
It's true that life is unpredictable. Any event or financial outlay that demands you to fork out a substantial chunk of money can happen anytime. A personal loan may be able to help you in this situation. However, your lending institution will have a set of requirements you must meet to qualify for a personal loan. One of those requirements is that your CIBIL score should fall within the range that most lenders regard to be healthy.
For you to have any chance of a lender approving you for a personal loan, your CIBIL score, which ranges from 300 to 900, must be at least 750. In fact, as soon as a lender receives your personal loan application, the very first thing they do is check your CIBIL score. It's because your credit history and general financial management abilities are reflected in your CIBIL score.
However, even if your CIBIL score is below 750 for whatever reason, there is still a chance that you will be approved for a personal loan to cover your immediate financial needs. You'll learn about those workarounds in this post. To learn more, keep reading.
How to get a Personal Loan with a low CIBIL score?
It's not easy to get a personal loan with a low CIBIL score but it is not impossible too. Let’s see how:
1. Choose a smaller personal loan amount:
Getting a personal loan even with a poor CIBIL score is doable. Opt for a personal loan with a lower amount rather than applying for a loan with a high amount. Smaller sums provide the lender assurance that the loan will be repaid.
2. Show Income Proof:
Provide proof of your income to the lender in order to get approved for a quick loan with a poor CIBIL score. As evidence of your income, provide your three-month pay slip.
3. Get a Joint Loan:
Join forces with a co-applicant or guarantor to apply for a joint loan. By submitting an application with a co-applicant, you can get a fast loan with a poor CIBIL score. With your parents, partner, or siblings, you can submit a loan application. However, the co-applicant must have a strong CIBIL score at the time of application.
4. Ask your lender to take your case into account if your credit score is NA or NH:
Your CIBIL score will show NA or NH, which stands for Not Available or No History. Ask the lender if your poor CIBIL score can be taken into account when you apply for a personal loan. However, you must demonstrate a good income and steady work to the lender in order to be authorised for a NA or NH credit score.
5. Fix credit report errors:
If you believe that your CIBIL Score is inaccurate, have it corrected before submitting an application for a personal loan. Correcting any issues after application would be a waste of time.
Low CIBIL score requirements for personal loan eligibility
You must be able to verify the following items in order to be approved for a personal loan with a low CIBIL Score:
1. Employment: You must work for a private, public, or LLP organisation in order to qualify for a quick loan with a low CIBIL.
2. Income: You must demonstrate to the lender that you have a substantial monthly income in order to qualify for a low CIBIL loan. A large income demonstrates to the lender that you are able to pay back the personal loan.
3. Employment Proof: Lenders require evidence that you earn a respectable monthly pay. To be qualified for an immediate personal loan, you must present your three-month income stub.
With a CIBIL score as low as 550, you are eligible to apply for a personal loan. You can apply for a loan with a low CIBIL with these general guidelines:
1. You must have a cumulative experience of more than six months and be employed at your current company for longer than three months in order to qualify for a personal loan with a low CIBIL score.
2. You must also make more than Rs 25000 per month in order to qualify.
3. You must present both the bank statement and your pay stub as identification of your wage.
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