How to avail a Personal Loan with bad credit score?

Credit Score

Personal loan Credit score A credit score for a personal loan is nothing but a three-digit number that reflects your creditworthiness. Several leading banks, government departments, and NBFCs (Non-Banking Financial Companies) send Credit Bureaus financial data and produce the Credit Score. The credit score is typically determined on the basis of the credit handling of your company or any company.

What is TransUnion CIBIL Score?

A well-established Indian credit firm is TransUnion CIBIL Limited, formerly established as CIBIL (Credit Information Bureau (India) Limited). The company was founded in 2000 and is responsible for managing the credit records of more than 600 million individuals and 32 million corporations. The CIBIL score range is in the range of 300 to 900, which is equivalent to a good score if any score is close to 900. Four major credit bureaus, TransUnion CIBIL, Experian, Equifax, and CRIF High Marks, are currently operating in India. Approximately 79 percent of loans earn approval if the credit score reaches 750, according to TransUnion.

Avail Personal Loan with Bad Personal loan Credit Score

The method of availing this loan is really simple and easier. In a Personal Loan, you no need to give any collateral or security. If you’ve bad credit history or your CIBIL Scores isn’t that high still you can avail a Personal Loan. There are multiple banks and financial institutions that permit loans with bad credit history.

Get a loan against your present income: In such cases, lenders provide a Personal Loan with higher personal loan interest rates. Being a borrower you just need to show your current income proof, salary slips, bank statements, and income tax returns.
Collateral Loan: In case your loan application faced rejection then you have an option of the secured loan as well. Simply, we can say you can go for a Gold Loan as well, in which you just need to pledge your gold and avail funds (after evaluation and verification of purity, lenders sanction your loan).
Corporate links with lenders: Being a part of any well-known organization can lets you relish many benefits. If your company has a good tie-up with lenders then there’s a chance of availing a loan at lower interest rates.
Adding a Joint Loan with your family member: The lenders can sanction you a Personal Loan if your family member’s personal loan credit scores are good and maintained. In such a case, you can avail of a joint loan with the help of that family member who’s got the good and highest score.
Guarantor: Mostly people refuse to be a guarantor because if the bank detects any fault in a borrower then you also have to face the legal penalties. If you have a good credit score and you’re ready to take a guarantee of a borrower then on behalf of your documents and score, the lender provides a loan.