The CIBIL score serves as a credibility indicator reflecting your past loan repayment history. In case your loan application is denied by the bank due to your CIBIL score, don’t fret. Discover here the methods available to secure a loan despite having a poor CIBIL score .
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Upon applying for a loan, the initial step involves the assessment of your CIBIL score.
A poor CIBIL score could potentially hinder your loan approval. This score serves as an assessment of your credibility, reflecting your past repayment history for previous loans. If you encounter such an issue where your loan application is rejected due to this reason, fret not. Learn about alternative methods available to secure a loan despite possessing a low CIBIL score.
Apply in NBFC
In situations where a low CIBIL score hampers your ability to secure a bank loan despite urgent financial needs, turning to an NBFC (Non-Banking Financial Company) can be an option. NBFCs often offer loans even with a less-than-ideal CIBIL score. However, it’s important to note that the interest rates in NBFCs might be higher compared to those offered by banks.
Joint loan option
If you find yourself in a situation where your CIBIL score is unfavorable but your partner maintains a good score, considering a joint loan application with them could be an alternative.
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Additionally, another option is to pursue a loan with a guarantor who possesses a strong credit score, allowing you to secure the loan based on their creditworthiness.
Advance salary
If you’re employed, several companies offer a loan option known as an advance salary. This arrangement provides the loan amount directly to your account, catering to immediate financial needs. Opting for an advance salary can help fulfill short-term requirements effectively.
Loan against FD
If you have investments such as Fixed Deposits (FDs), or if you’ve contributed to schemes like LIC or PPF, you have the option to take a loan against these assets. These loans are granted based on the amount you have invested. You can apply for a loan against your PPF account if it has been active for at least one financial year. The loan facility is available for up to five years, and afterward, partial withdrawal options may also become accessible. The stipulated time given allows for repayment of this loan.
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Gold loan
A gold loan is a form of secured loan where, despite a poor CIBIL score, you can opt for this option. It involves minimal paperwork. In a gold loan, your gold is used as collateral, and you can receive a loan of up to 75 percent of the current market value of the gold you provide as security.
