Options for obtaining a Loan with a low CIBIL score: A comprehensive guide

A low CIBIL score makes securing a Loan challenging but not impossible. If you find yourself in this situation, several strategies and options are available to help you obtain the financing you need. Here is a list of things you can do to get a Loan with a low CIBIL score:

Lower the Loan amount

If your CIBIL score is low and you are applying for a higher Loan amount, your lender sees you as a high-risk borrower. The lender has every right to think that you will default on the payments. If you lower the Loan amount, the lender approves your Loan. You can easily manage the Loan repayment and have the required money within your access at the right time.

Income stability

If you can show proof of your income stability, then the lender might take your application into consideration. You can calculate how much Loan will I get on my salary. To get your Loan with a low CIBIL score approved, a potential hike or an additional income source might also work. However, there is a chance that the interest rates will be high, but your Loan will be approved.

Fix your credit report

Errors in your credit report are not uncommon. Many times, your CIBIL score is low due to these errors. In such cases, research how to improve the CIBIL score. If your information is not updated, your credit report will have errors. It is better to check the report often to update your information. If you find errors, inform the authorities and resolve them.

Apply with a co-applicant

Getting a co-applicant with a good credit report can increase your chances of getting a Loan approved. You must get consent from the required person before submitting the Loan application. Signing up someone as your co-applicant for a Loan is illegal without their permission. When the lender sees your application along with a co-applicant, they are convinced about your credibility.  

NA or NH on your credit report

You can convince your lender to consider your credit report's NA or NH marking. You get an NA or NH marking on your credit report if your credit period has been inactive for the last 36 months. Negotiate with your lender and explain to them why you have a period of inactivity in your credit report. If the lender is convinced, you might receive a Loan for a low CIBIL score.  

Conclusion

While having a low CIBIL score can complicate the Loan application process, several options are available to help you secure the money you need. Remember to weigh the pros and cons of each option and choose the one that aligns best with your financial goals. However, you must remember that these options do not always work. You should research and consult with your lender before deciding.