When you need an emergency fund, and you don’t have any security to pledge. A personal loan is the best option for your travel plan or any other short-term expenses. But the main factor is you must have a good cibil score because it is the major factor required by any lender.

Generally, lenders prefer cibil score of more than 750, but there are some lenders who will save you by providing loan for low cibil score.

What does a low CIBIL score indicate?

A low CIBIL score defines your low creditworthiness, and poor credit behaviour which helps them decide whether they should give you any credit or not.

·       A person with a credit score of more than 750 can easily avail of a loan as compared to a person with a low credit score. A CIBIL score of 550 or less makes it challenging for an individual to get personal loan approval.

·       When lenders provide loan for poor cibil score, you need to fulfill extra parameters to avail loan.

A Personal loan for low CIBIL score can have the following effects:

·       Your personal loan for low cibil score application may be rejected completely.

·       You have to provide additional documentation to prove your creditworthiness for a personal loan.

·       After getting approval for your application, you have to pay a higher rate of interest, and lenders consider your profile as a high-risk borrower owing to your low credit score.

Fastest tips to get a loan for poor cibil score

Here are some fastest ways in which you can avail of a personal loan for poor cibil score:-

1. Check your credit score twice- Sometimes it can happen, that the CIBIL report missed the latest update on your credit. Any silly mistake can become unfavourable for you. You must check your cibil score repeatedly.

2. Give application for a joint loan- Having a co-applicant with a high credit score can solve your problem because it increases the chances for an individual with a low credit score to get fast personal loan approval.

3. Show income tax filed proof and bills receipt- If you don’t have any strong proof to show your creditworthiness. You can show your other proofs of bill payment; it shows your responsibility in behaviour.

4. Secure proof of income- You need to show evidence of a high-income job or employment with a reputed organization, more additional sources of income or fixed cash flows can increase the probabilities of a personal loan getting approved.

5. NA or NH mentioned in a credit report- The NA or NH in a credit report means that the borrower's usable credit history is less than 6 months;an individual can explain their reason for inactivity to the lenders. If your reasons sound genuine, there may be higher chances to get personal loan approval.

Key points: Loan for low CIBIL score

·       When you’re going to avail of a loan for poor cibil score, apply for a lesser amount.

·       Instead of taking bad credit loans from banks, preferred NBFCs or Fintechs for this loan, generally banks refused to provide.

Do deep research and analysis before applying, it always must be the first step.