Getting a Personal loan with a poor credit score or no credit history at all seems to be tough. But this isn’t true completely, you can even get approved for a personal loan at low CIBIL, but for that, you need to fulfil certain other criteria. This includes having a good income and low debt to income ratio.
How CIBIL and Personal Loan are related?
When you apply for a personal loan the lender will for sure check your CIBIL score. This is basically done to check the risk factor involved and to know the creditworthiness of the applicant. If the lender finds you with a decent credit history your personal loan will be approved in a hassle-free manner. But in case you don’t have a satisfactory credit history (low credit score) then there are very fewer chances that your personal loan application will be approved.
Personal Loan at Low- CIBIL
Getting a personal loan approved at a low CIBIL can be possible, but for that, an applicant needs to be employed at a prestigious company (CAT A or CAT B) or the other thing which can help you get approved for your personal loan at low CIBIL is your spouse. Yes, this is true, your personal loan application can also get approved if your spouse’s credit score is high.
Apart from these two- your credit card can also help you get approved for a personal loan. If you are a credit card user of the same bank with whom you have applied for a personal loan, then there are chances that your loan application will get approved in certain cases. This includes conditions when you are using your credit card smartly, paying your dues timely, not defaulting on your credit card payments even once. All this gives no reason for your lender to stress on your CIBIL score. You are already using their service and have been doing quite well, so there are chances that they will ignore your low CIBIL score and approve your personal loan application seeing your previous track record with them.
The reason why lenders approve your loan even at low CIBIL or when there is no credit history
- You have a high Income
- No previous borrowing, which indicates you were never in a financial problem.
- When your spouse is having a high income.
- When your spouse’s CIBIL score is high.
- When you apply with the same lender with whom you have your credit card, and you have made timely payments for the same without any default.
However, if you have a low CIBIL and want urgent funding then there are certain options for you to get a personal loan that doesn’t require a credit check. Your first step to getting such a loan is to find an appropriate lender. You can use the internet and search for such lenders, compare for the interest rate and other offerings from the options available and then apply with one. Slice pay, Buddy loan, EarrlySalary are some of the platforms which can help you to get approved for such a loan. Apart from the credit approvals, there are certain pitfalls associated with such loans, which includes higher interest rates, stricter terms. So, before you avail one you need to be double sure about your decision.
But, once you have made your decision to take a personal loan, it is important to check your credit score. This helps you to know your creditworthiness. If you find your credit score to be a decent one, you can apply with any of the top lenders without bothering about the approval or rejection. And if you have a low CIBIL you need to first check for other eligibility criteria and then apply with a particular lender who can lend you in such condition.