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Have a low CIBIL Score? Know how you can get Personal Loan

How to apply for a personal loan with a low CIBIL Score

Availing of instant loans or low credit score loans can be a difficult feat. A CIBIL score, also known as credit score, is a three-digit numerical, provided by CIBIL (Credit Information Bureau India Limited), a credit rating agency. It ranges from 300-900 and gauges the creditworthiness of a borrower. A credit score above 750 is considered favorable, and anything below that may act as an obstruction for financial lenders and institutions to grant credit.

Many financial institutions often refuse to sanction credits to borrowers due to bad credit scores. This metric plays an important role when individuals need to borrow credit. Therefore, keeping a check on your credit report is extremely crucial in today’s loan disbursal system. 

Nonetheless, before proceeding with how to download CIBIL report, here are a few ways in which a prospective borrower can try to avail of a personal loan with a less than desirable credit score. 

  • Research about the lender – To avail of any loan, opting for the right lender is very important. Borrowers must ensure that the financial institutions that provide a loan with a low credit score should be credible. Hence before choosing a lender, one must check out the financial lender’s website and credentials.

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  • Check interest rate – Another crucial factor to consider while availing a loan against low CIBIL is the interest rate. Some financial lenders might offer a loan with a low CIBIL score but against a high-interest rate.
  • Apply for a lower amount – If a borrower’s credit score is low and he/she asks for a higher loan value, financial lenders will hesitate to sanction the loan amount as there are high chances of default. But if the applied loan value is lower, lenders will consider granting the loan amount applied for.
  • Proof of additional income – A borrower might have a low credit rating, but a rise in salary or other income sources can support the loan approval application. Moreover, if a borrower shows a steady flow of income, the chances of loan approval will increase.

The factors mentioned above must be followed by the borrowers to avail of a personal loan. They could also contact CIBIL score customer care to gather more information about their credit report and make a loan application accordingly.

Above all, applicants must try and undertake measures like making timely payments, reduce credit utilisation and the likes to boost their CIBIL score. If they can manage to get this score above the 750 marks, they can avail low-interest rates and other such benefits on the loan application.

After following these measures, one can check his/her CIBIL report after 4-12 months to check if the changes are reflecting on the score. Here’s how to download the CIBIL report to check the score.

Guide on downloading CIBIL report

Step 1 – Borrowers need to duly fill the online application form by providing personal credentials such as contact information and email ID.

Step 2 – Once clicked on the “proceed to payment” option, a pop-up window will display the CIBIL registration ID, and the borrowers will choose a payment mode.

Step 3 – Once the payment is confirmed, the CIBIL bureau will start the authentication process.

Step 4 – After the authentication process is complete, borrowers can download their CIBIL report. It is to be noted that to access the report, one will be asked to provide a password.

These steps can guide you on how to download the CIBIL report. If you do not require the report, you can also check your CIBIL score from the official website of any reputed non-banking financial institutions.

With a good CIBIL score, borrowers can enjoy their desired loan amount and associated benefits. They can also negotiate with lenders to provide the best interest rates on the advance.