Whenever you are applying for loans, your CIBIL score plays an important role in deciding whether your application will be approved or not. It also decides the interest rate at which you can get a loan.
Thus, if you apply for a loan, it is important that you have a good CIBIL score. On average, it takes up 1 or 2 years to improve one’s CIBIL score but if you require an urgent loan, it is not impossible to get one with a low score. You must keep in mind some of the whats, hows, and whys in order to secure an instant loan without CIBIL score so high. Once you have picked up the knowledge regarding these important aspects you can read more about CIBIL score and getting a loan sanctioned at https://navi.com/blog/how-to-get-a-loan-with-a-low-without-cibil-score/.
What is a CIBIL Score?
CIBIL score is a three-digit number that a bank verifies when you apply for a loan. This is to determine if the borrower will pay back the loan in time. Credit Information Bureau Limit or CIBIL is an organization that keeps the track of the data pertaining to the borrower’s history; it includes the credit history and the lapses if any.
All financial institutions and banks share their data with this organization and based on this data, they come up with CIBIL scores for each individual. Every time you seek a loan, the bank tallies your score- be it an instant loan without CIBIL score strict requirement or one that requires you to maintain a high score. Thus, you cannot hide your score from financial institutions or banks.
What CIBIL score is a Bad Score?
The range at which your CIBIL score is determined is 300-900. The score is decided keeping in mind a lot of things like credit card utilization, repayment history, the number of times you have taken a loan, etc. Based on these factors, you are assigned a CIBIL score. The higher your score is, the cheaper and faster you get loans. But if you have a low score, you might find it difficult to get a loan at just interest. A score of 300 to 699 is generally considered a low score while 700 to 900 is a good score. Applicants having a score between 700 and 900 are often given out loans instantly by banks and at a minimal interest rate. But nowadays, you can get an instant loan without CIBIL score playing too much of a role. How? We shall get to that shortly.
Things to Keep in Mind When Applying for a Loan with Low CIBIL Score
Show that You Earn Enough to Pay EMI payments
In case you have acquired a new source of income or have had an increment in your salary, you can show that to your bank and get an instant loan without CIBIL score restrictions since your income has been raised. The bank or any other financial institution wants to make sure that you have the means of paying their money back. If they are satisfied, you might get the loan.
It is possible to get loans despite having a CIBIL score lower than 700.
Ask For a Lower Amount
Getting a loan of a large amount with a low CIBIL score can be quite difficult. Instead, try to get a loan for a lower amount. This can make the lender consider your application and grant you the loan.
Loan Against Some Security
You can also ask for a loan against security. It is a viable option for people who have assets like a house or insurance policies, fixed deposits, mutual funds or shares, PPF, gold, credit cards, etc. These act as a security against which banks will give you a loan despite having a low CIBIL score.
Take a Joint Loan
If your spouse has a CIBIL score over 750, you can take a joint loan. In such a case, both of your scores will be considered and naturally, this will increase the score.
Get a Loan in Your Spouse’s name
In case you have a very poor credit score and your spouse has a good one, consider taking the loan in his/her name. This will help you get the loan at the best interest rate.
If you have zero credit score or find it extremely difficult to get an instant loan without CIBIL score that falls under the average category, you may ask your siblings or parents to act as your guarantor. If they have a good credit score, your bank or a financial institution might consider approving that loan.
Thus getting an instant loan without CIBIL score too high is not difficult but one must not be complacent about this. You should also try your best to improve your
score otherwise you might end up exhausting all the ways of securing a loan.