Bad CIBIL Score Loan 2023: Currently, most of the individuals wish to get a personal loan; However, their poor CIBIL CIBIL score restricts them from getting loans from banks. Before granting a loan, banks evaluate the applicant’s CIBIL score.
A person’s likelihood of getting a bank loan is affected by their credit score, which typically ranges from 300 to 900. However, a low or poor credit score does not always rule out the possibility of getting a personal loan.
Find out different strategies for getting a loan despite a poor CIBIL score in this article. Further, this part will examine the possible reasons for a low CIBIL score, documents required to get a loan in such circumstances, eligibility criteria, interest rates and instructions on how to apply for a loan with a poor CIBIL score. On that note, be sure to read this article diligently till the end for more clarification. Loans 2023 on Bad Sybil
What is a bad CIBIL loan? (What is Bad CIBIL Loan?)
A finance company prepares a bad CIBIL score report for the credit bureaus. An applicant’s financial reliability is analyzed on a scale of 300 to 900. A credit score of 300 to 619 is classified as a poor credit score.
Additionally, a CIBIL score of more than 750 is considered favorable for an applicant.
Both credit score and CIBIL score are similar terms. They refer to a three-digit number that reveals an applicant’s credit history to finance companies or banks. An applicant with a good CIBIL score is more likely to get a loan quickly, while an applicant with a poor credit score faces difficulties in getting a loan.
Reasons For Bad CIBIL Score
Let us now tell you some of the reasons for bad credit score that people usually do:
- Not repaying the loan on time
It is common for individuals to resort to taking bank loans or borrowing from companies and later have the problem of failing to make prompt repayments.
Occasionally, individuals fail to meet their loan obligations and as a result, the financial institution forwards a non-payment report to the credit bureau regarding the individual’s financial history.
If the same person should take out a personal loan at a later time, their credit file indicates past failure to pay. This will result in banks rejecting loan applications after reviewing the credit report.
- Non-payment of credit bills
Nowadays, a significant number of individuals avoid settling their credit card debts on time, resulting in a gradual decline in their credit scores, according to Experian.
Your credit card may be suspended if you engage in this activity.
Paying your credit card bills on time results in an enhanced credit limit.
- Delay in payment of EMI by taking goods on installments
During the festive season or online sales, people tend to buy a lot of electronic items like refrigerators, LED lights, TVs, smartphones, etc. using the EMI option.
Subsequently, individuals opt for installment payments which lead to delay in repayment of EMIs, causing a gradual decline in their credit score.
Ensure that your credit score remains intact by repaying your borrowed loans on time.
- Applying for another loan after taking one loan
On many occasions, individuals face a severe financial crisis, due to which they apply for a subsequent loan despite having already availed the loan.
Modified text: Getting a loan may seem like a viable option for some individuals, however, it can sometimes lead to more financial distress when it comes to paying the installments for two individuals. This can unfortunately lead to a deterioration in their credit score, making it challenging for them to get a loan in the future.
Make sure to take only one loan at a time and wait until it is fully paid before applying for another loan.
- Check your credit score periodically
During the initial stage, individuals who are unaware of their credit score tend to check their CIBIL score frequently, however, some financial institutions deduct your score on credit score enquiry.
Ignoring this will steadily lower your credit rating.
Be sure to review your credit report before applying for a credit card or personal loan.
Be sure to monitor your credit activity periodically to ensure there are no unauthorized transactions. If you see one, report it to the credit bureau immediately.
- Applying for a loan without reason
It has become common for some people to apply for a loan when they have no pressing need. This practice raises concern as there is a high probability that they may not qualify for a loan when they actually need it. It is important to avoid taking out loans unnecessarily, as this can adversely affect one’s credit score.
How to Get Loan on Bad CIBIL Score (Loan on Bad CIBIL Score)
To apply for a bad loan using CIBIL score, the age of the applicant is above 21 years. Also, to proceed with the application process, all the necessary documents like Aadhaar Card and PAN Card should be readily available.
Individuals with poor CIBIL scores can avail financial assistance from non-banking financial institutions (NBFCs) for loans. These companies can guide the applicants regarding the loan application process
If your CIBIL score is not good enough, don’t panic as we have laid out a detailed process that will guide you through the steps to get a loan despite your poor CIBIL score.
How to get a loan from a bank with a bad CIBIL score? (Bank Loan With Bad Civil Score)
It may seem that getting a loan from a bank with a poor CIBIL score is unattainable, but in reality it is possible to get a loan. To get a loan from a bank, one must provide collateral to the bank. This allows the bank to grant a loan despite a low CIBIL score.
Let’s know the ways to get bad CIBIL score from bank.
A loan can be taken from a bank on a fixed deposit account
A loan can be taken from a bank on a credit card
A loan can be taken from a bank by pledging your gold jewellery
You can take a loan by mortgaging your home
You can take a loan by mortgaging your car
You can take a loan by pledging your bike
If you have invested in a mutual fund, you can also take a loan based on that, but there are some terms and conditions that you have to follow.
Need a personal loan with bad CIBIL score? (Need a Personal Loan With Bad CIBIL Score)
If you need urgent funds despite having a poor credit score, and want to secure a personal loan, it would be advisable to approach a non-banking financial institution as banks do not lend to individuals with low CIBIL scores.
In this write-up, we provide you details on how to get a loan despite having a poor CIBIL score. The procedure is described as follows.
Eligibility For Bad CIBIL Loan
If your credit score is quite bad, then you should follow the following eligibility criteria, only then you will be able to get a loan easily.
Your age should be between 21 years to 55 years
You must have some source of income
First of all you need to be an Indian citizen
Your monthly salary should be more than ₹15000
You must have KYC documents like Aadhaar Card, PAN Card
Mobile number should also be linked with Aadhaar card if applying online.
To apply for a loan, one needs to have an internet connection and also a smartphone.
If necessary, apply a lower loan amount for the initial loan and you will get the loan faster.
Apply for loans from non-banking finance companies.
Bad CIBIL score loans can also be availed through online loan application but keep in mind that the interest rate is higher.
If you are applying for a loan from a finance company then a guarantor is required to get a loan against a bad CIBIL score.
How to get loan from bank if CIBIL is bad? (How to Get Loan From Bank if CIBIL is Bad?)
Submitting your gold jewelery to a bank can act as collateral for a loan, even if you have a poor credit score.
To secure a loan, one should visit the nearest government or private bank and fill the loan application form. After that, it is important to attest your documents and then submit the application to the bank.
Depending on your jewellery, the credit limit will be increased once this step is completed.
Consider that banks can give gold loans up to 75-80% of the jewelry value. It is recommended to take a gold loan from a bank with a high credit limit.
How to get loan easily on bad CIBIL score? (How to Get Loan Easily on Bad CIBIL Score?)
Recently, financial institutions like Bajaj Finserv, Paisa Bazar and Bank Bazar have started providing loans to individuals with poor credit ratings.
If a person has a credit record of 6 months showing positivity and a monthly salary of more than ₹ 15000, there will be no difficulty in getting a loan while maintaining a bad CIBIL score.
To avail loan against bad CIBIL score, you have to apply like this.
First of all go to Paisa Bazar website
Click on Personal Loans on the home page
Now you have to fill all your personal information here
After this upload Aadhaar Card, PAN Card
After this your credit score will be checked
You will now be offered a credit limit
If your credit history is good then here you will get credit limit accordingly.
After this fill your bank details to get the loan amount
Now wait till the loan is approved, the loan amount will be sent to your bank account as soon as your loan is approved.
Interest Rate on Loan After CIBIL Score
When your credit score is unfavorable, you will be subject to the highest possible interest rate. Generally, an ineffective CIBIL score results in an interest rate of 18% to 54% per annum.
Apart from this, there are other costs that become visible once you sign up on that particular platform.
Personal Loan For Bad CIBIL Score
If you have a bad CIBIL score, you can take a personal loan using the loan app available on the Google Play Store. Here we have mentioned some of the platforms from where you can take a loan.
Loan application on Bad CIBIL
Loan application on Bad CIBIL: There are ten loan applications available on Google Play Store for those who want to get a loan despite a poor CIBIL score. These applications have received overwhelmingly positive ratings from users, with an average score of 4.2 out of 5.
Learn about the loan applications that can help you get the loan amount
|Idfc bank loan app