Author: realmoney

Getting a personal loan can be beneficial on many levels. To get a loan sanctioned, important documents like a PAN card and bank statements are required. A PAN card, also known as the Permanent Account Number, is a 10-digit alphanumeric number that can be used to track an individual’s financial transaction. It is issued by the Income Tax Department of India to each of the taxpayers in the country.

A PAN card also serves as a mandatory document for receiving a salary, purchase of mutual funds or bonds, buying a life insurance policy, and applying for a personal loan. However, sometimes, getting a personal loan without a PAN card is possible. So, let’s find out how to apply for a personal loan without a PAN card.

1] What is a Personal Loan?

A personal loan is a relaxed debt that can be taken in case of emergencies or for making a major purchase. There is no collateral required to apply for a personal loan. It is usually sanctioned for a short period of 1 to 5 years.

You can even opt for flexible payments while repaying the loan. The repayment options might be decided by the lender based on the CIBIL score or credit history. The loan is repaid every month via EMIs. Personal loans usually require a lot fewer documents compared to other loans.

 A personal loan can be used for:

• Debt consolidation
• Paying medical expenses
• Medical emergencies
• Travel or leisure purposes
• Wedding expenses
• Education loan or fees
• Home improvement
• Paying off taxes

Also Read: How Do You Get a Personal Loan Without Security?

2] Eligibility criteria for a personal loan without a PAN card

To apply for a personal loan without a PAN card, you must meet the following criteria.

• All the applicants must be aged between 21 years and 57 years
• The income of the applicant must be ₹13,500 or more
• The income of the applicant must be credited directly to their bank account
• The CIBIL credit score of the applicant must be a minimum of 600
• A consistent history of repaying loans on time can form the basis for loan sanctions without a PAN card.

Submitting utility bills and ID proof instead of a PAN card can work for some lenders. However, it depends on the eligibility criteria of the lenders you are borrowing money from.

Also Read: How to Get a Personal Loan with a Bad CIBIL Score?

3] Documents required for a personal loan without a PAN card

Personal loans in Mumbai can be sanctioned very quickly. You can get personal loans of up to ₹30 lakh approved in a time frame of 48 hours without any documentation provided your residence and office address is updated in your respective bank account. The following documents may be required when you apply for a personal loan.

For Identity Proof, if you don’t have a PAN card, any one of the officially valid documents given below will suffice:

• Aadhaar card
• Valid Indian passport
• Valid voter ID
• Valid driver’s license

Any 1 of the following for your address proof

• Aadhaar card
• Valid Indian passport
• Valid voter ID
• Valid driver’s license
• Electricity/Water/Gasbills dated within the last 2 months

For income proof, if you are a salaried applicant, you will need the last 3 months’ bank statements of your salary account in PDF format showing salary credits. If you are self-employed, you will require the last 3 months’ bank statements in PDF format.

4] How can you apply for a personal loan without a PAN Card?

If your relationship with the bank is good, and you repay your dues promptly without defaulting, the bank might consider or offer you a personal loan based on your history with them. Hence, keep these things in mind while applying for a personal loan without a PAN card:

• Establish a good relationship with your bank
• Pay all your dues consistently on time
• Maintain a high credit score
• Start with taking a small loan

However, you must always check the terms and conditions levied by the lender. If you don’t have a PAN card, your chances of getting favourable repayment terms might also take a hit.

The pandemic has compelled many banks and NBFCs alike to adopt a digital infrastructure to carry out online verification of the documents and processing of personal loans. Due to this much-needed change, banks and NBFCs can now offer online personal loans with much less waiting time compared to traditional offline channels.

Hence, individuals in desperate need of money during an emergency, who cannot avail of personal loans from their existing banks, can approach such lenders who offer end-to-end online loan processing.

Alternatively, you can also visit online financial marketplaces like Real Money Solutions to compare online personal loans offered by traditional banks, NBFCs, and new-age fintech/digital lenders.

5] Interest Rates & Charges for a personal loan without a PAN Card

Getting a loan without a PAN card is likely to have some impact on the interest rate as this loan is an unsecured one and the lender faces potential risk.

Personal loan providers usually offer an interest rate between 10%-25%. However, the rates vary from lender to lender and completely depend on the eligibility criteria i.e., income, credit score and repayment history.

To get a personal loan without a PAN card, it is better to apply with an NBFC or an online lender. Times have changed now and most lenders in India use data-driven algorithms and credit scores to determine the applicant’s creditworthiness and their ability to repay loans. This makes it easy to get a loan without a PAN card and is also the reason why people without a PAN card prefer to apply for a loan online.

If you compare to traditional banks, NBFCs and other online lenders have relatively simple eligibility criteria and lenient rules that do not make a PAN card a mandatory document to submit.

Other identity proofs or address proofs are more than enough to get a personal loan. Also, these lenders offer instant disbursals directly to your bank account. This is what makes them a favourite in the Indian financial lending space.

Also Read: How Do You Get a Personal Loan Without Bank Statements?

Conclusion

You never quite know when you might require money. Whether it’s an emergency or you are sending your kids abroad, personal loans are sanctioned without any collateral and are directly credited to your bank account.

Applying for a personal loan without a PAN Card is easy. However, it is advisable to apply for a PAN card so that you don’t have to struggle to apply for loans in the future.

For now, if you don’t have a PAN card and need a personal loan without it, you now know how to apply, where to apply, and what to expect after reading this article.

A bank account is imperative to take care of one’s financials. It makes managing finances easy with debit and credit facilities as per requirement. With a bank account, one has access to their hard-earned money anytime, anywhere. Moreover, bill payments, salary credits, insurance payments, tax payments, and other financial activities can be processed via the bank account without having to deal in cash at all times.

Even to get a loan, having a bank account is essential because the loan amount is disbursed in your bank account, and the loan repayment is done through the same account. A bank statement is one of the important documents required to be eligible to get a personal loan.

Before we get into the particulars of how to get a personal loan without bank statements, let’s take a look at the basics of a personal loan.

Before we get into the particulars of how to get a personal loan without bank statements, let’s take a look at the basics of a personal loan.

A] Features and Benefits of Personal Loan

A personal loan is a loan that doesn’t require any collateral or security and is offered with minimal documentation. Funds from this loan can be used for any legitimate financial need. Like any other loan, you have to repay it, as per the terms agreed upon with the bank. These terms can include repayment time from a few months to a few years in easy equated monthly instalments (EMIs).

One of the best reasons to avail a personal loan is the consolidation of other existing debts. For instance, let’s say that you have a few existing debts to your name; they can be student loans, credit card debt, etc. If you are having trouble making payments, in such cases, a personal loan allows you to borrow money and repay the same over time. Personal loans can be termed as instalment debt that allow you to avail a lump sum of funds and return it over a decided timeline, as per the terms.

You can also use a personal loan for mandatory yet huge expenses like buying or renovating your house, buying an automobile or medical emergencies.

Features and benefits of a personal loan include:

1. No collateral or security required: Personal loans does not need any collateral like a house or car to avail a loan. A personal loan is approved only based on one’s creditworthiness, something that depends on your credit score, income, repayment history, employer reputation, etc.

2. Flexible end use: Personal loans can be utilised for multiple purposes like to meet expenses of a medical emergency, travel, house renovation, debt consolidation, and much more.

3. Flexible tenure: Personal Loans generally come with flexible tenure plans ranging from 12 months to 60 months.

4. Minimal documentation: Personal loans can be applied via online as well as offline processing with minimal documentation. Key documents that an applicant is generally needed to submit include proof of identity, proof of address, and proof of income.

5. Quick disbursal: Personal loan disbursal can at times happen within a few hours, once the loan application is approved. In some cases, turnaround times can also be as short as a few minutes if one can avail of a pre-approved loan offer.

6. Flexible loan amount: The personal loan amount that gets disbursed is based on factors such as an individual’s repayment history, monthly income, age, profession, employer reputation, and other factors. Lenders offer personal loans of an amount ranging from as low as ₹10,000 to as high as ₹40 lakhs.

Also Read: How Do You Get a Personal Loan Without Security?

B] What are the eligibility criteria for a personal loan?

Note that the eligibility criteria are the same overall, but the particulars of interest, salary requirement, etc might be subjective as per the financial institution approached for a personal loan.

Following people are eligible to apply for a Personal Loan:

• Employees of private limited companies, employees from public sector undertakings, including central, state as well as local bodies.
• People between the age of 21 to 60 years.
• Individuals who have had a job for at least 2 years, at least a minimum of 1 year with their current employer.
• Individuals who earn a minimum of ₹25,000 as net income per month.
• The nationality of individuals applying for a personal loan should be Indian.
• They must be salaried employees.
• Their CIBIL score should be 750 or higher.

Also Read: How do you get a Personal Loan without a Pan Card?

C] How to get a personal loan without bank statements?

Submitting your bank statement is important when applying for a personal loan. It acts as valid proof of your monthly income as well as shows your ability to repay the loan. A bank statement determines your loan eligibility, as it records your monthly debits and credits; your bill payments, salary credit, and other payments. Additionally, a bank statement also confirms your identity, your repayment capacity, and your existing EMI outflow.

Hence, when applying for a personal loan with a bank, NBFC, or even an online lender, submission of your bank statement is mandatory. However, you can also avail a personal loan without a bank statement hassle-free by considering the following options.

Payday loans:

Payday loans are known as salary loans or payroll loans. It is a short-term loan offer based on your salary slip. This type of loan is offered without any collateral and is unsecured. Opting for payday loans is the right choice for salaried individuals, especially ones who have just started working. However, the interest charged on this type of loan is higher compared to a personal loan availed from a bank or NBFC. Payday loan products are mostly offered by leading fintech companies in India.

Peer-to-peer loans:

Peer-to-peer loans are popularly known as P2P lending or crowd lending. Peer-to-peer lending allows lenders to lend money and borrowers to borrow. This lending and borrowing is generally done online, wherein both parties have to register themselves.

Postdated cheques are collected from the borrower in the name of the lender as a proxy for the repayment of the loan. The loan amount is transferred directly to the bank account of the borrower. This type of loan is sanctioned based on one’s credit score, social score, and KYC documents. Since lenders are at high risk in peer-to-peer loans, the interest rate on these loans is usually high.

D] Other ways to get a personal loan without a bank statement

By establishing a good relationship with your bank:

If you are applying for a personal loan with the same bank where you hold a savings or salary account, the bank is unlikely to ask you for your bank statement. This is because they are already aware of your credit worthiness.

Paying all your credit card dues on time:

If you have a credit card, ensure that you repay the dues on time. By doing so, you can increase your chances of getting a loan without any bank statement. Paying your credit card dues on time not only keeps you debt free but also enhances your credit repayment record, which comes in handy for an instant loan without a bank statement.

Maintaining a high credit score:

Maintaining a high credit score can increase your chances of getting a loan as several banks, NBFCs, and online lenders are likely to offer you a loan simply based on your score. Having a high credit score is considered a sign of good repayment behaviour. Moreover, it instils faith in the lenders concerning timely loan repayment.

Conclusion

When seeking a personal loan without bank statements, it is important to maintain a good relationship with your banking institution. It makes it easy to avail of a personal loan based on timely payments and clear credit records. Plus, the details are already available with the bank. Moreover, it is important to have the right financial guidance in such cases, which can help you act upon applying for a personal loan at the right time and use the funds appropriately.

The benefit of a personal loan without security is that you don’t need to risk any of your assets. In the case of default, the lender might take legal action to recover your money. However, this will not affect your personal property at all.

Moreover, a personal loan without security is beneficial for people who have certain financial goals, but don’t have the appropriate assets to fulfil them. For instance, if a person wants to start a business but does not have the required collateral to pledge, it would be difficult for them to start their business. This is when a personal loan comes to the rescue!

1] Personal Loan Without Security: Things To Know

• It is important to know that a personal loan without security has higher interest rates compared to loans with security. This is because there is a high risk involved when there is no security. Hence, the interest component is more to cover the cost of the loan undertaken by the lender.
• Since personal loans are often availed without security, it is essential to have a stable primary income as well as a good cash flow report. This helps build the lender’s confidence to loan the money to the borrower and verify his ability to pay back the loan.
• It is also important to know that unsecured personal loans are the riskier call for a good credit score.
• Additionally, a clean history is also important,unlike in the case of loans with security.

Thus, the decision to take a personal loan without or with security is based on your financial situation.

2] Eligibility criteria for a personal loan without security

To qualify for personal loans without security, certain aspects are considered, such as:

• Credit Rating/Score
• Credit Worthiness

Usually, the applicant’s credit score is assessed. The credit scores determine the creditworthiness of the applicant. A desirable credit score for a personal loan is seven hundred and fifty or above.

A good credit rating and history represent that the applicant is responsible for repaying the loan or credit without any trouble or delay.

When an applicant has a steady history of loan/ credit repayments and a high credit rating worthiness, the chances of them getting a personal loan are much higher. This is because most banks or financial institutions judge your ability to repay the loans by your credit or CIBIL score. Hence, maintaining a good CIBIL score (over 750) helps you avail loans without consuming much time and get the desired terms for repayment.

It is also important to note that you must present verified KYC documents like the aadhar card, passport, driving license, etc. Since personal loans are unsecured loans, the interest rate charged is a little bit higher than secured loans, but if you have a decent credit history, that will not be a big problem. Always pay your dues or EMI on time because if you default on these payments, your CIBIL score might suffer a dent in the process.

Apart from credit qualifications, this is a general list of eligibility criteria for how to get a loan from a bank without security:

• The applicant must be an Indian citizen.
• The applicant’s desirable age must be between 20to 60
• The applicant must be either employed in a private or public sector or be self-employed.

In cases of availing a personal loan from bank, it helps when the applicant has an existing long relationship with the bank. Existing clients have higher chances of getting their loan applications quickly approved by their respective banks because of their long-standing relationship.

3] Documents required for a personal loan without security

To avail a personal loan from a bank, the applicant can either visit the bank and fill out the application or also look if their banks have the option to apply for a personal loan on their official websites.

Following is a general list of documents that must be submitted to banks to get a personal loan:

• Proof of applicant’s age
• Address proof
• Proof of Identity
• Passport-size pictures of the applicant
• A duly filled loan application
• Proof of income: like salary slips

Also Read: How do you get a Personal Loan without a Pan Card?

4] How can you apply for a personal loan without security?

It is very much possible to apply for a personal loan without security. It can be done via the online lending portal of financial institutions by filling out the application, wherein the applicant has to follow the following steps:

• The applicant has to download the lender’s application or visit their website from their mobile phone or a desktop. It is advised that you use a desktop for filling out the application as the mobile screens are a little smaller,which may cause you to miss out on important details.
• In the next step, the applicant has to log in and fill out the loan application. This generally includes the personal details of the applicant along with loan
• Next, the applicant has to submit their KYC documents like the Aadhaar card, PAN card, passport, or driving license

Once the loan is approved, the amount is directly transferred to the borrower’s bank account.

If the process is to be summed up, it consists of:

• Determining the loan amount: Determine the loan amount you need. Specify why you are applying for a loan. It can be to fund a wedding, medical expenses, travel, or purchasing an item.
• Verifying their eligibility: Filling a loan application without verifying the eligibility criteria will lead to rejection and negatively impact your credit or CIBIL score.
• Collecting their documents: Whether you are applying for an online personal loan or some other kind of loan, it is necessary to collect all the documents in the required format and verify them before uploading.
• Calculating the EMI: Before taking a loan, make sure to calculate the EMI using the EMI calculator to determine the monthly instalment. It is a free tool that borrowers can use whenever they like to calculate their EMI and loan tenure.
• Filling out your application: It is very important to fill out your loan application accurately to make the assessment process thorough and swift.
• Submitting your loan application: You will get a tracking number once you submit your application. Make sure to keep that number as you might need it in the future to track your application process.
• Waiting for confirmation: Once the lending institution has approved the personal loan, the borrower gets a message regarding the same. After the borrower accepts the message, the money is disbursed to the borrower’s account.

Also Read: How Do You Get a Personal Loan Without Bank Statements?

Conclusion

A personal loan is a type of unsecured loan which requires no security. Hence, you can get a personal loan approved without risking any of your assets as collateral. Having a good CIBIL or credit score certainly helps in the process, and you have the negotiation authority to get favourable terms for repayment of the loan.

While a personal loan is essential for several financial reasons, it is also important to stick to your repayment timelines for it helps in case you need to take another loan in the future.

Reading this blog will help you through the basics of availing a personal loan without security. However, it is also important to consult with a financial advisor or your bank to sort out certain particulars and obtain thorough clarity before you proceed with the application.

When you apply for a personal loan, whether from a bank or an NBFC, they evaluate your loan application based on different eligibility criteria set by their respective institution. Your credit or CIBIL score plays a significant role in that, and it is one of the most important criteria that lenders use to determine your eligibility for a personal loan.

Your loan application is most likely to be approved if you have a decent CIBIL score (750 or above). On the other contrary, if your CIBIL score is poor (650 or less), chances are that your application will be rejected.

This article focuses on 7 ways to get a personal loan for CIBIL defaulters.

1] Who is a CIBIL defaulter?

Your CIBIL score does not come with a label, nor is the CIBIL defaulter a legal term. Borrowers with a low CIBIL score (less than 650) are often known as CIBIL defaulters, as these individuals tend to default on their credit obligations repeatedly.

1.1] 7 ways to get a personal loan as a CIBIL defaulter

If you have repeatedly made defaults on your debt in the past or have a low CIBIL score, your chances of getting a loan approved decrease significantly.

Lending money to a person with a poor credit score is too risky a proposition for financial institutions. However, you can still avail a personal loan despite a low CIBIL score. How? Below are some ways to avail of a personal loan for CIBIL defaulters.

• • Apply with a Guarantor/Co-applicant

If you have a consistent stable income at present but have a low CIBIL score as a result of your previous dues, you can still avail the option of a personal loan by applying with a guarantor or a co-applicant like your spouse or family member. Having a co-applicant or a guarantor significantly reduces the financial risk of the lender since the guarantor will be paying the same in case you default.

A co-guarantor with a good CIBIL score increases the chances of your application being approved. It is also important to keep in mind that in case you default on your payment, your guarantor or co-applicant will also take a hit on their CIBIL score.

• • Have a Stable Primary Source of Income

It is important to have a stable primary source of income to stand a better chance of getting your loan application accepted. Doing so helps increase confidence for your lender and reduces the risk of defaulting. Additionally, if 40% of your income is only used to repay the debt obligations, your chances of getting a loan approval increase even if you are a CIBIL defaulter.

• • Borrow at Higher Interest Rates

Getting a personal loan for CIBIL defaulters is a tough task. But, getting a loan at a higher interest rate is another option to get your application approved. Banks or NBFCs are likely to charge a higher interest rate if you have a poor CIBIL score. However, make sure to manage your expenses accordingly since borrowing at a higher interest rate may put a dent in your savings.

• • Choose Loans with Collateral

Personal loans are unsecured and granted without collateral. Hence, to ensure a low interest rate or approval of the loan application, you can take a loan with collateral to decrease the risk of the lender to some extent. Make sure you pay your dues on time, or else your collateral will be confiscated.

• • Opt for Online Lenders

You can also opt for a personal loan from the many online lenders, as they are a little more lenient while dealing with personal loan applicants with a low CIBIL score or a defaulter. It is important to demonstrate to the lenders that you can pay your dues on time and without much hassles if you want your loan application to get accepted.

• • Improve Your CIBIL Score

To improve your CIBIL score, ensure to make payments on time. Most lenders in India consider the CIBIL score as the most reliable method for evaluating a person’s creditworthiness. Therefore, improve your CIBIL score to get your loan application approved in the future.

• • Apply for a smaller amount

The chances of your loan application getting approved are higher if you ask for a small amount than a large sum. Lenders might charge you a higher interest rate or demand for collateral, but it improves your chances of getting a loan approved as there is comparatively less risk with a small amount even if you have a poor credit score.

Also Read: How Do You Get a Personal Loan Without Security?

2] How to remove your name from the CIBIL defaulter list?

A CIBIL score is a three-digit number ranging from 300 to 900, indicating your creditworthiness and the ability to pay back the money. The higher the CIBIL score, the higher the chances of your loan getting approved. A good CIBIL score also gives you the benefit of availing of loan offers with lower interest rates and favourable terms, which you can dictate.

You can improve your CIBIL score by following these steps:

• • Financial punctuality

Financial punctuality is one of the most important factors that affect your CIBIL score. If you make timely payments on your debt, your CIBIL score will improve. But, if you keep defaulting on your payments, your CIBIL score takes a hit. This is why you must always pay your credit card dues and loan EMIs on time.

• • Low credit utilisation

Many youngsters overspend with their credit cards as soon as they get their first paycheck. It is important to keep your expenditures in check and should ideally not exceed more than 30% of your credit limit.

• • A mix of secured & unsecured loans

You should have a good mix of both secured and unsecured loans in your credit profile. A secured loan requires you to offer security upfront as collateral. An unsecured loan does not require any collateral. The security for the lenders usually depends on their CIBIL score. It indicates that you have enough experience to handle both types of loans.

• • Regularly check your credit score

You must review your credit report frequently. In case you notice any discrepancy or error in your credit report, make sure to immediately notify the concerned credit bureau and get it rectified.

Also Read: How to Get a Personal Loan with a Bad CIBIL Score?

Conclusion

A CIBIL score is an important criterion to evaluate whether you are creditworthy or not. Securing a loan for defaulters is a challenge, which is why having a good CIBIL score is essential. A good CIBIL score ensures a swift application for loan approval and a hassle-free process. Whereas a poor CIBIL score can make the process tedious, and if you keep defaulting on payments, you would be put on the CIBIL defaulters list.

If you are on a CIBIL defaulters list, connect with us to know how we can help!

Just like your physical and mental health, your credit health matters too. Your credit score is no longer just a number. It can open up a lot of new avenues and experiences for you. Credit scores are also called CIBIL scores. If you have a low CIBIL score, personal loans and other types of loans are not readily approved by the banks and NBFCs. In this article, we will talk about the importance of a good CIBIL score and how to get a personal loan with a low CIBIL score.

A] Importance of Having a Good CIBIL Score

CIBIL score is a three-digit number ranging between 300-900, calculated depending on the financial history of a person. The higher your score, the better the chances of getting your loan application approved. Your CIBIL score takes into consideration multiple factors like on-time payment of dues, number of loan accounts, outstanding loan amount, etc.

Different banks and NBFCs have different criteria for issuing a loan to their applicants. Also, the CIBIL score is important and carries many advantages to both: the borrower and the lender.

Let’s take a look at how:

• CIBIL Score lets you evaluate your credit status and how well you manage your finances. A person with a good CIBIL score can be trusted with loan money because of their good finance management. On the other hand, a person with a low CIBIL score might not get that luxury.
• A person with a high CIBIL score might get loans approved by the banks or other institutions at a lower interest rate and minimum paperwork. It saves valuable time. Plus, it provides a financial advantage. On the contrary, a person with a poor CIBIL score might not get a loan or get it at a comparatively higher interest rate.

Note: Loan rejection is not based only on a poor CIBIL score, but a lot of different aspects are also considered.

• If you have a good CIBIL score, it gives you a Higher Negotiation Authority to bring the interest rate.
• Exciting bank offers are another perk of having a good CIBIL score. People with a good credit score have a high credit card value, better privileges and cashback.

Also Read: How Do You Get a Personal Loan Without Security?

B] What are the issues you face while taking a personal loan with a low CIBIL score?

If you have a low CIBIL score, a personal loan or applying for any other loan might result in a lot of issues, such as:

1. High-Interest rates:

A poor CIBIL score can cause problems like banks charging you higher rates on your loan.

2. Loan rejection:

Many banks and NBFCs do not prefer lending money or personal loan to low CIBIL scorers because they repeatedly defer on their dues or do not pay the money (EMI) on time.

3. Securities:

If you have a poor CIBIL score and want to apply for a personal loan, the banks might be reluctant to offer you a loan without security. Commodities like gold, platinum, or your land or home are mostly preferred securities by banks.

4. Business problems:

If you are an entrepreneur with a great and upcoming idea, but you have a poor CIBIL score, chances are your application for the loan will comparatively create more hassle than a person with a good CIBIL score. This might jeopardize and put your business at risk.

5. Rental issues:

A person with a poor CIBIL score might face a few problems while renting a property as some landlords usually run a credit check before renting. In case of an extremely low CIBIL score, the landlord might ask for a higher security deposit to cover the risks of a bad score.

5 ways to get a personal loan when you have a bad CIBIL score

If you have a low CIBIL score and want your personal loan application to be approved, use these five techniques to secure a personal loan.

1. Expand your search:

If you need a personal loan with a bad CIBIL score, don’t just look towards banks for loans. Expand your search and visit online financial marketplaces that provide loans from different lenders based on your CIBIL score, income, location, type of job, etc.

2. Explain your situation to your manager:

COVID has been hard on most people in India and the world alike, so it is a good idea to explain to your relationship manager what challenges you are facing and what steps have you undertaken to make the re-payments. This might or might not work, but it is worth a try to talk to your relationship manager directly. Chances are, even if he cannot help you with one situation, he might be able to help you with something else in the process.

3. Show collateral/security against the loan:

It is always a good idea to show collateral or proof of security against your loan because it allows you to get interested at a low rate. You can use a less important item as security to get your loan approved. Likewise, using something more valuable as collateral can lead to extra motivation to pay your EMI on time.

4. Apply for a joint/Guarantor loan:

You can get an instant loan without a CIBIL score by applying for a loan with your spouse/family member who has a good credit score. It improves the chances of getting your loan approved at a low-interest rate. The co-applicant also acts like a joint loanee or a guarantor. In addition, this reduces the risk by the lender since the co-applicant/guarantor also becomes liable for loan repayment in case the primary borrower defaults on his payment. It is important to note that your co-applicant should be aware of any such event since they are also participating in the loan.

5. Loan a small amount:

When you borrow a loan, try and borrow a small amount. You can use this loan to improve your credit score by repaying on time. Taking a small loan from the bank also lets you test your ability to manage your finance. It will also help you to judge your ability to repay a bigger amount in the future.

Also Read : How Does a CIBIL Defaulter get a Personal Loan?

Conclusion

A good CIBIL score for a personal loan is very crucial. Maintaining a good CIBIL score shows your ability to manage your finances and tests your repayment skills. An ideal CIBIL score is anything above 750, and a healthy CIBIL score helps in the long run to secure all types of loans.

Need help securing a personal loan? Get in touch with us to know how we can help!