Personal loans can play an important role in reducing your problems if you need money suddenly. Due to income security, banks often pay attention to the employed people, because the risk of drowning money is less here. Government organizations, public sector undertaking (PSU) and those working in multinational companies easily get personal loans compared to others. Bank and non-banking financial companies (NBFC) often check the age, income, job profile, employer details and credit scores before the employed person’s age, income, income, job profile and credit score before applying.
A low cibil or credit score can cause problems in taking personal loans. Your CIBIL score plays an important role in applying the loan and fixing the interest rate along with the loan amount. But don’t be disappointed! Salared employees with low cibil scores can also get personal loans.
What is a cibil score?
The CIBIL score is a number of 3 digits, which the Transunion CIBIL offers. This number is between 300 and 900. The high score indicates a good credit history, while the low score indicates your bad repayment behavior. Landers pay attention to the score of 700 or more while giving loans. Because in such people, financial institutions see less risk. While people with less than 600 scores are considered risky.
Personal loan will be available despite CIBIL score is low
A low CIBIL score (less than 600) can cause problems in sanctioning personal loans, but this work is not impossible either. Many lenders also offer loans to less credit scores. But in such a situation, they often charge higher interest rates and the conditions of the repayment can also be strict.
The good news is that even if you are a salaryed employee and your score is low, you can still apply for a personal loan with the help of some methods. You can find out your free credit score and detailed credit report on the Moneycontrol app and website. For your credit score and not reduced, it is necessary to monitor your credit score regular.
Moneycontrol has partnered with top lenders. Under this, the company offers a loan of up to 50 lakh rupees. This process is 100% digital and easy, in which the interest rate starts only at 10.5% PA. Along with this, there is no hidden charge in it.
You can take the help of these tips to take personal loan when scored low CIBIL score
- Offer collateral for loan: Despite having a low CIBIL score, you can approve your personal loan by offering collateral. Property, fixed deposits or other valuable assets can be pledged as security to take loans. In this way, the risk of lenders decreases and your application increases the chances of applying. In this way you can take a loan at a lower interest rate compared to unsecured loans.
- Apply for joint loan: If your CIBIL score is not good, apply for a joint personal loan with someone with high score. If the credit history of your coal-applicant is good, then you can help the bank to assure that you will repay the loan. Joint loan is a good option for a low credit score salary.
- Apply for small loan amount: If your CIBIL score is low, applying for a small loan amount can be a good idea. Landers can approve loans by looking at low amount, because small amounts also reduce their risk. For example, if you need 1 lakh rupees, apply for 60,000 rupees instead. After the loan is approved, you can take help from family members or friends for the rest of the money.
- Income proof: One of the faces that the lenders check while looking at the loan application is ‘the capacity to repay the loan of the application’. If your CIBIL score is low, then providing proof of stable income can help in loan approval. To show your ability to repay the loan, submit salary slip, bank statement and income tax returns.
- Check Err in your credit report: The low cibil score can sometimes be caused by error or description in your credit report. Therefore, it is necessary to check your credit report regular so that there is no mistake that puts negative impact on your score. If you find a mistake, you can complain in the Credit Bureau. Improvement of mistake in your credit report can increase your CIBIL score.
Personal loan for employed people: how to apply
You can easily apply online for personal loans through Landers’ website or mobile app. Many financial institutions offer institute loan offers, which can complete the application process in a few minutes.
Meanwhile, you can apply for 100% digital and instant loan through the Moneycontrol app. Here, money will be transferred immediately to your bank account with any paperwork and low processing fees. This is quick and easy and just have to follow three steps – enter your details, complete KYC and set the EMI repayment.
conclusion
It is difficult to get a personal loan with a low CIBIL score, but not impossible. You can increase some tips – such as keeping a valuable asset as a security, applying for a joint loan or by providing income proof of income, you can increase the chances of getting a loan approve.
Summary
Is it difficult to get a loan due to low CIBIL score? Do not worry – It is still possible to get a personal loan for Saleid Employees! Learn about ways to get personal loans easily.
Top banks/ NBFCs
50 lakhs
Get instant loan up to
Disclaimer
This fraction/article is written by an external partner and does not reflect the work of the editorial team of Moneycontrol. This may include references to products and services offered by Moneycontrol.