HomeResourcesHow to Get a Personal Loan with a Low CIBIL Score

How can you improve your personal loan application with a low CIBIL score?

You have a low CIBIL score and are worried about whether you will get the needed amount from the bank. To get a loan offer from the bank, follow these tips:

  • right-arrowBorrow a low loan amount: Personal loans don’t have the requirement of an asset, which makes it risky for the lender. This is why when you request a lower loan limit, the lender may see this as an opportunity to take a calculated risk by approving your request.
    right-arrowOnboard a co-applicant: Borrowing a loan with another applicant who has a good credit score can enhance your profile. It builds confidence for the lender that you’re less likely to default on the repayment of the loan.
    right-arrowRequest to consider NA/NH in CIBIL: Applicants with no credit history have a CIBIL score of 0 or less. In such cases, you can negotiate with the lender to consider your profile for the loan application. To prove your case, submit the CIBIL report where it shows your credit status as NA/NH, this implies you’ve not borrowed any credit before.

    • Factors Affecting Loan Application Other than CIBIL Score

    You’ve got the trick to secure a loan with a low CIBIL score, but other factors can also affect your loan application. Take a look at them to ensure a smooth loan application:

  • right-arrowMonthly Income: The monthly salary you earn can help you secure a high loan amount. So ensure that you have enough money to borrow the required amount. If you’ve requested a high loan amount and your salary is low, the loan won’t get approved.
    right-arrowDebt-to-Income ratio: The money you have left after paying monthly bills is what is left for EMIs. If that amount is less in comparison to your expense ratio, it could affect your loan application.
    right-arrowRelationship with the lender: Borrowing from a lender with whom you’ve dealt earlier and have unpaid credit card bills or EMIs will not work. It is best to find banks or NBFCs that offer the required loan amount at negotiated rates.

  • Conclusion

    CIBIL score matters in your loan application, but you can overcome its impact by showing credibility. A good income flow and a co-applicant with a good credit record boost your loan application.

    So, next time you apply for a personal loan online, check their criteria. If they accept an application with no or low CIBIL score, proceed with the application.

    Written byWriter logoTeam Rupyy

    Frequently Asked  Questions

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