A personal loan is an unsecured loan option that does not require borrowers to keep any collateral to avail the advance. For that reason, the loan amount is sanctioned by the lenders after examining the credit history and score of a borrower. This is where the CIBIL score comes into picture.
Here is a sneak peek into all about CIBIL score which you must know if you are wishing to avail instant loans for a low CIBIL score.
What is the CIBIL score required for a personal loan?
TransUnion CIBIL is an RBI licensed credit rating bureau that records and maintains credit files for different organisations, as well as individuals. As per eligibility requirements set by financial lenders, if a borrower’s CIBIL score is high, their chances of loan approval will also be excellent. Usually, the minimum score to avail a personal loan, as set by most financial lenders, is 750 or above.
With this credit score, lenders or creditors get an assurance whether the prospective borrower can repay the loan on time. Those who do not have an adequate CIBIL score, there are options to avail an instant loan for a low score.
Nonetheless, with a good CIBIL score, borrowers can enjoy lower interest rates, alongside other such perks, while opting for a personal loan.
How to avail a low-interest personal loan with a low score?
Individuals with a credit score below 750 might find it difficult to avail a personal loan.
Nonetheless, those with a low CIBIL score can follow these pointers that will help them get an instant loan for low CIBIL scores quickly and eventually enhance their credit score.
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Opt for a lower loan amount
If a borrower chooses a higher loan amount and has a low credit score, financial lenders will not approve the amount owing to the risk of default. Thus, one must opt for a smaller principal amount and choose a top-up loan from the same financial lender after successfully repaying the initial instalments.
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Income proof
Most lenders consider current salary and other sources of income to gauge an individual’s repayment capability. To avail an instant loan for a low CIBIL score, one should submit a bank statement with proof of salary hike, yearly bonus, or other additional income sources. By submitting this, one can prove that he/she is financially stable and know how to avail a personal loan with a poor credit score.
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Add a co-applicant
Individuals can choose to apply for the loan amount with a co-applicant who has a high credit score to increase the chances of approval.
By following these factors, borrowers can improve their personal credit score and avail the desired amount to fund their requirements.
Notably, the minimum CIBIL score to avail instant personal loans varies from one financial institution to another. Therefore, borrowers must check the CIBIL score requirement for a particular financial institution before applying for a loan.
Maintaining a high credit score is beneficial for borrowers to avail loans at competitive interest rates and reduced EMIs. Therefore, borrowers need to improve their CIBIL score for personal loan approval and enjoy associated benefits.
Along with providing loans at best interest rates, reputed NBFCs such as Bajaj Finserv extend pre-approved offers to eligible candidates to make the loan application process fast and convenient. An applicant can check the pre-approved offer by entering his/her name and contact information.
To know more regarding loan applications or disbursals, one can contact the Bajaj Finserv customer care number and resolve the queries.
Usually, most digital lenders assess personal loan applications via algorithms that consider a combination of credit score and other essential factors. However, maintaining a good credit score is highly beneficial and will allow individuals to secure the loan against the best terms and conditions.
Must Read: Personal Loan: Know How To Calculate EMIs Online For a Personal Loan
