You can get a personal loan for a CIBIL™ score of 650 and above. But, you may have to pay a higher interest rate and will not get a flexible repayment tenure. You may have to pay back the loan over a shorter repayment period. Generally, a CIBIL™ score of 750 and above is considered good, and you can get loans easily for this score. The closer the score is to 900, the easier it is to get a loan.
Here are some of the ways in which you can get a personal loan for a low CIBIL™ score of 650.
Show Income Evidence In Support of Loan Repayments:
Your credit score may be low, but you can always show a hike in salary or additional sources of income to support your loan application. Also, if you show that you have a permanent job with a steady source of income, then lenders will decide in favor of sanctioning the loan.
Apply For A Low Personal Loan Amount:
The lender may not sanction your personal loan application if you have asked for a high personal loan amount with a low CIBIL™ score of 650. This is because he may not have the confidence that you can repay your loan. But, if your personal loan amount is lower, your loan approval may be easy and repaying a lower loan amount may also be faster.
Apply For a Loan With A Co-Applicant or a Guarantor:
When you apply for a loan with a guarantor or a co-applicant who has a good CIBIL™ score, then you will get your loan approved easily. Ensure that you complete all the KYC formalities with the permission of the guarantor along with the required signatures on the applicable forms.
When the lender sees a co-applicant or a guarantor with a good CIBIL ™ score, he will be confident to approve your loan.
Resolve Errors in Your Credit Report:
Sometimes, your CIBIL™ score will be down due to errors in your credit report. These discrepancies should be reported immediately to one of the credit bureaus to get them corrected. This will work in favor of repairing your CIBIL™ score. This is the reason why you should check your credit report regularly.
Request your lender to consider your case with an NA or NH in your credit report:
If you have had a period of credit inactivity in the last 36 months or have not had a CIBIL ™ score at all, then you can talk to your lender and ask him to consider your case with an NA/NH. Your loan will get approved with a higher interest rate.
Conclusion
So, even though you have a low CIBIL™ score, you can still get a personal loan using the following ways above.