How To Get Urgent Personal Loan For CIBIL™ Defaulters

There is no exact definition for a CIBIL^TM defaulter. But you can consider individuals with a score lower than 600 as CIBIL^TM  defaulters. Usually, people who do not pay their loans on time or default on other assets have a score lower than 600. The credit score is also drastically impacted if you apply for multiple credit cards or even multiple loans within a short duration. So, can these defaulters get urgent loans to satisfy their emergency needs. The answer is Yes. Let us now see how. 

How Do CIBIL^TM Defaulters Get Urgent Loans?

Here are some ways in which CIBIL^TM defaulters can get urgent loan. 

• Apply With a Co-signer -  You can increase your chances of getting a loan approval and minimize the probability of application rejection when you apply with a co-signer or guarantor who has a higher credit score. 

• Take Steps to Improve Your Credit Score - Your credit score is one of the most essential factors in loan approval. It reflects your financial discipline. Lenders trust that you will repay your loan in time if you have a good credit score. So, if your credit score is low, then you can take steps to improve it and apply for a loan if you can wait. 

• Provide Collateral - When you apply for a loan with a collateral, you are minimizing the risk for the lender. This is because, when you default on your loan, the lender can convert your physical assets into funds and take the money that is due for the loan. So, applying with a collateral will definitely increase your chances of getting a loan. 
• Go in for Higher Interest Rates - When you have a poor CIBIL^TM score, you may not get urgent loans at lower interest rates. Lenders may be willing to lend but at higher interest rates. 
• Go in for other options - If you have exhausted all ways and still have not got a loan, you may have to settle for options like peer to peer lending where you can take money from your friends or acquaintances.