How Can I Get a Personal Loan with a Low CIBIL Score

Taking a personal loan can be the fastest and easiest way to meet your unforeseen expenses or any emergency cash needs. Based on your CIBIL score, you can qualify for the loan easily. But what if your credit score is not in good shape, as this is considered the approval point of your loan? Well, in such situations also, you can get a personal loan with a low CIBIL score and meet all your financial needs.

How Can I Get a Personal Loan with a Low CIBIL Score?

  • Borrowing from NBFCs and HFCs: Non-banking financial companies (NBFCs) and Housing financial companies (HFCs) can offer a loan even with a low credit score. Usually, a slightly higher rate of interest than banks is offered here, but surely you can have a loan with low or no credit as well.
  • Use your salary slip as proof: A regular income ensures the regular repayment of the loan. Thus, with your salary slip, you can present your eligibility and apply for a personal loan. With FlexSalary, just based on your salary slip and with a monthly salary of Rs. 8,000, you can have a personal loan of up to Rs. 2,00,000.
  • Collateral-based loans: Keeping an asset as security or collateral can be another way of having a personal loan with a low CIBIL score. You can go for a loan against house property, investment certificates, motor vehicles, etc. Based on the value of the collateral, you can also negotiate on the rate of interest.
  • Get a guarantor: Show that you are a trustworthy customer even though your credit score is not so good. It has two ways; First is that you have a good relationship with the lender, and second is that you have a guarantor. When your CIBIL score is not so good, presenting a guarantor can help you to have a personal loan easily.

Factors that Affect Your Credit Score

  • Missing on your EMIs: While regular and default-free payments help in building your credit score, missing on your EMIs pulls it down as well. Not paying your credit card bills on time does the same thing.
  • Taking multiple loans and credit cards at once: While taking a loan or a credit card, every time your credit score is pulled, which is called a “hard inquiry”. Every time the hard inquiry is done, it pushes down your credit score by a few points. Also, having multiple loans or credit lines tell that you are not financially sound and keep needing extra help, which lowers your CIBIL score.
  • Errors and defaults: Errors in your credit report are another reason for lowering your credit score. If there is a mismatch in your personal credentials or documents provided, it will affect your credit score negatively. Thus, you must check your credit report regularly and report errors if any.
  • Mixing credit: Credit mixing is where you have both secured and unsecured loans. A secured loan is given against an asset like a car or home etc. Whereas, an unsecured loan is like a quick loan or a credit card. The more unsecured loans you have, the less creditworthy you are considered. You can make up for this with the prepayment of your unsecured loans.

With FlexSalary, you can have a personal loan even with a low CIBIL score because we consider other factors such as your income to approve your loan. So, if you are a salaried professional and need money urgently, apply for a loan with FlexSalary and get cash within a few hours.