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Avail full benefits of personal loan in spite of low CIBIL score

If you want a loan for bad CIBIL (Credit Information Bureau (India) Limited) the first thing that you need to be able to do is prove that you would be able to pay the EMI (estimated monthly instalment) payments with what you earn. Let us say you have had a salary raise or you have an extra source of income. In these cases, there is a good chance that the lender would consider you to be an eligible candidate even if you have a low CIBIL score. If you are able to prove to the lender that you have a steady income and stable job they would be more favourable with you.

Asking for a lower loan amount

If you want a personal loan for CIBIL cases it is always better to go with a loan amount that is on the lower side of things. When you ask for a high loan amount in spite of having a low CIBIL score it tells the lender that there is a high likelihood that you would default on the loan. However, if you apply for a lower loan amount the lender would be a lot more comfortable since such an amount is easier to repay.

Applying with a co-applicant or getting a guarantor

If you want to improve your chances of getting a personal loan for low CIBIL score it would be better to secure a guarantor or co-applicant, at the very least. It is but given that you would need that person’s permission beforehand as there are KYC (know your customer) formalities that have to be completed in this case. Their signatures are needed in these cases as well. However, you need to make sure that your guarantor or co-applicant has a steady income and a decent enough CIBIL score.

Correcting mistakes in the credit report

There is always a chance that there could be mistakes in your CIBIL report. So before you go looking a loan for bad CIBIL score it is advisable that you check out your credit report first. Find out if there are any mistakes in the same. It could be that some latest information is missing from your report and that may mean a lower score. This is no fault of yours but still, you could be penalized for the same. This is the reason why it is very important that you check your CIBIL score on a regular basis.

Conclusion

Finally, in case of a personal loan for CIBIL cases, you can also try asking the lender to consider your case with an NH or NA in your credit report. When you have an NH or NA in your credit report it means that there is no activity in your credit report for a previous period of 36 months. This would also mean that your CIBIL report does not have any credit score as such. In that case, you can always make an attempt to talk to your lender about the lack of activity in your credit report.

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