Every once in a while we meet with incidences where the financial situation of ours don’t allow to go to the extent where we need to be. Borrowing from market or credit cards also becomes out of the questions. You may opt for Gold or other secured loans but sometimes even that is not an option. In the end you are left with one option and that is Personal Loan. Listening to the word loan rings more bells than solving the trouble. The procedure is simple and quick. You don’t need to hypothecate any insurance or property to avail this loan. All you have to do is to follow some simple steps and help us understand your requirements. Personal loan is one of the easiest loans anyone can get. Although the interest rate is usually very high personal loan is very convenient to fulfill the money requirement for multiple uses such as marriage, buying electronic equipment’s and many others.
Here are the few reasons why Personal Loans are easy to get:
- Documents required are less
- No collateral needed
- Low annual income required
Personal Loan for Bad CIBIL score are processed and approved within a day but there are some reasons why they get denied too:
- Income Criteria Not Met: If the Income of Applicant is much lower than the minimum slab decided by the bank then there is fair amount of possibility that it can get rejected. This is because your income helps banks in deciding whether financial situation is credit worthy or not.. Check out personal loan from a variety of Loan Providers like ICICI bank, Axis Bank, Bajaj Finserv, etc.
- Job Stability: If you switch your job frequently or have a temporary job then also you loan can get denied. Also the same will be verified via your Salary Slips and Bank statement.
- Inaccurate or Insufficient Documentation: While applying for a personal loan, if you falsify details such as incorrect income or provide incomplete documents then chances of loan rejection increases. Use our website to avoid it.
- CIBIL Defaulter: There are many other reasons for the personal loan rejections but the most common is when the applicant is a CIBIL defaulter. This means that such a person has previously defaulted the loan or credit card repayment or delayed the EMI or have too many payments balance resulting in a low CIBIL score. And such individuals are categorized as CIBIL defaulters by credit institutions (such as banks, financial institutions where you apply for the loan) and personal loan (or any type of loan or credit card) application are straight away rejected by the credit lenders. Your CIBIL score shows whether you are credit worthy or not. And a low CIBIL score means you are likely to default payment in the future.
The question remains what to do if you are a CIBIL Defaulter or have a lower Credit Score?
Yes, being a CIBIL defaulter, you can apply for loan too and here’s how to get the loan:
- Choose for Secured Personal Loan: You can keep your assets, fixed deposits, equities, securities or even gold as collateral with the bank. And they will offer you the Personal Loan for Bad CIBIL score without even checking your CIBIL score.
- Show your High Salary: There might be chances that previously due to money constraints you had default the payment but as now your income is very high. You can discuss this with the bank. They will verify your annual income proof and grant you a loan.
- Get loan in the name of another person in your family having a good CIBIL score: For e.g. if your wife had taken any loan in the past and has a good repayment history with a good CIBIL score then get a loan on her name.
- Get a Personal Loan for Bad CIBIL score from private companies/ NBFCs : Many organizations also offer personal loan without verifying your CIBIL score. But in return they charge very high interest rate. So this is another way to get a personal loan.
What to do after a CIBIL Defaulter gets Personal Loan?
Benefits after Getting a Personal Loan for Bad CIBIL score: Once loan is granted, on-time EMI payment can help in rebuilding your credit score and help in removing the defaulter status. Lender will then report your repayment history to the CIBIL. And if you’ve done timely payments without even a single miss, chances of CIBIL re-evaluating your score from bad to good automatically increase. You can also check out tips on improving CIBIL score on our other blogs.