How to get a Loan Approved with a Low CIBIL Score?
Personal Loans- undoubtedly one of the most important forms of loans there is. It determines your purchasing power. It helps in ascertaining your consumption criteria. Moreover, it also helps in establishing your credit position in the market. You avail of personal loans when you are in deep crises.
The factor affecting the availing of personal loans is CIBIL Score. CIBIL Score determines how much personal loan you can take from the necessary banking institutions. Therefore it is essential to critically examine the borrower’s credibility before giving out a personal loan. Following are a few methods through which you can avail of a personal loan with a low CIBIL score:
Loans Sanctioned Through Micro-Financial Institutions
Large Multinational Banks give out loans. Public Sector and Private Sector banks are also important institutions for giving out loans. However, the bigger and more reputed banking institutions conduct intense scrutiny before giving out the loans. Moreover, they conduct a thorough inquiry about the credibility of the borrower before giving out loans.
A thorough inquiry is made into the personal and official details of the borrower. If the borrower has a low CIBIL Score, the banks will not trust his credibility factor. Therefore they would reject the loan application and would not grant the borrower the loan amount. However, small finance banking institutions are different. Since their customer base is small, they take a certain amount as a loan.
Moreover, since the number of people taking the loan is low in small banks, the interest percentage on the loans taken is very high. Therefore only at such banking institutions can you go with a low CIBIL score. Since they charge high interest, your low CIBIL score would not be an important factor in this regard.
Approaching Small Banking and Rural Development Institutions
If you have a low CIBIL Score, you can still apply from banking institutions for loans. You need to know when you are getting the loan and where you want to loan. Thus Regional Rural and Cooperative Banking Institutions are significant institutions for providing you loans when you have a low CIBIL Score.
These banking institutions’ customer base comprises people who do not possess that much technical knowledge about banking. The amount of loan provided to people from such institutions is also low in amount. Therefore you can go to such institutions and take loans even if your CIBIL score is not up to the mark and is therefore low because you did not clear your previous dues within time. Thus be careful about the loan amount you are availing. Although no CIBIL Score is analyzed before taking the loan, strict action is taken when you do not repay the loan within time. Thus be careful about availing of the requisite loan opportunity from the banking institution.
Thus the aforementioned information might help you understand that you can avail of loans even with a low CIBIL Score.