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A personal loan is an easy go-to option for meeting diverse expenses as it has no end-use restriction. However, since it is an unsecured loan, it becomes extremely important to fulfil the eligibility criteria to get approval for the loan. If you are having a low CIBIL score, you can still apply for a personal loan online and get approval by using several strategies.
6 Ways to Get a Personal Loan Online with Low CIBIL Score
Below are some ways by which you can secure a personal loan online despite having a lower CIBIL score:
A lender might reject your loan application as soon as they notice a low CIBIL score in your credit report. Under such circumstances, you can opt for a lower loan amount. Generally, a lower loan amount involves a lower repayment risk. Hence, there are chances that if you request the lender, they will approve the loan.
You can opt for a loan jointly with a family member or friend. Nonetheless, it becomes imperative that the co-applicant must have a good credit score. Thus, lenders will know that at least one of the applicants is reliable and can trust you with the loan amount applied for. Otherwise, if the credit score of the other person, too, is less, then it is extremely difficult to get approval.
You can request a friend or family member to be your guarantor. This makes a lender know that they can trust you with the loan and that they can approach your guarantor in case of default. Nonetheless, it is important that the guarantor must have a good CIBIL score and an error-free credit report.
- Produce evidence to prove loan repayment ability
You can produce your income details as proof that you will be able to pay the monthly instalments on time. Additionally, if you have a scope of promotion in the near future, you can also produce those details to the lender. This would reassure them that despite a low CIBIL score, you will be able to pay your EMIs on time. Thus they will be more inclined to trust you with the loan repayment and approve your loan request.
- Resolve errors in your credit report
Even if your CIBIL score is low, you must go through your credit reports to identify the main reasons behind your low credit score. Also, if you notice any errors in your credit report, you must immediately report that to the authorities. You can do so by simply logging in to the official portal of CIBIL and registering the issue. Once the error is fixed, your CIBIL score increases considerably. At the same time, an error-free credit report can increase your online personal loan approval chances.
- Make an earnest request to your lender
In case of urgent need of funds, you can request your lender to take your emergency situation into consideration. For instance, if you are seeking a loan to finance treatment, produce the medical bill to the lender to let them know the urgency of the loan. Similarly, if you use the money to plan a wedding, submit the pending bills. This would considerably increase the chances of getting your loan application approved.
Eligibility Criteria for Personal Loan Application
The eligibility criteria vary greatly with financial institutions. However, a few common ones are:
- Applicant must be an Indian citizen
- Age must be above 21 years
- Must be a salaried individual in a reputed company or a self-employed individual
- Monthly income must be above Rs. 15,000
- A credit score above 750
- An NTC score above 150 for a new applicant
- A minimum work experience of 2 to 3 years
You can also calculate your personal loan eligibility by simply using an online calculator. You need to navigate to the appropriate website and choose if you are a salaried or a self-employed individual. Then enter the income value and the EMI to get the desired results.
Documents Required to Apply for Personal Loan Online
The documents required for an online application for a personal loan are:
- KYC documents such as Aadhaar card, Voter card, PAN card or driving license.
- Bills such as electricity bills or telephone bills to verify your residential address.
- Last 3 months’ salary slips
Apart from these, the lender can ask you for additional documents that might increase your chances of loan approval.
You can use a personal loan to cover pretty much all expenses such as planning a destination wedding, an international trip, meeting emergency medical expenses, or finance higher education. Hence, in case you have a low CIBIL score, try to use different strategies to improve it.
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