How To Apply For A Personal Loan With Low CIBIL Score?

Getting approval for a personal loan while applying with a low CIBIL Score might seem impossible but can be made possible by considering some factors. Usually, lenders measure your repaying capacity by checking your CIBIL Score. Along with your score banks also check your credit history and report to get a brief idea of your repaying habits. Your credit report contains all the information about your current and previous loans which enables the bank to evaluate how much amount you have taken and how you have repaid it along with several other factors. Since there is no collateral involved and the lender has no assets to recover the amount, they check your CIBIL Score to make sure that the applicant is capable of repaying the loan and would not default. You can use a personal loan EMI calculator to check your repayment eligibility and apply for the loan accordingly.

Your CIBIL Score provides a brief indication to the bank whether you would be a creditworthy applicant or a risky applicant. GroMo enables you to check your CIBIL Score free online to stay aware of your creditworthiness before applying for a loan. Moreover, GroMo is the leading fintech application in the Indian market that offers its users to earn money by selling financial products online. You can download the GroMo application to check your CIBIL Score. Also, you can register on the app to become a GroMo Partner and sell financial products online to potential customers to earn money online.

Measures To Apply For Personal Loan With Low CIBIL Score

Here are some of the measures that you can implement to apply for a personal loan with low CIBIL Score:

Prove That Your Income Can Support EMI Payments

Banks are only concerned about getting their loan amount repaid. Therefore, if you are able to prove to the bank that your income levels are greater than that of the EMI amount and that you will be able to repay the repayment installments without defaulting, then there are chances that you might get your personal loan application approved. Moreover, if you have received an increment in your salary, or have an additional source of income supporting your income. There are chances that the banks might consider your income levels and approve your personal loan application even with a low CIBIL Score. Moreover, even if you are able to convince the bank that you have a high source of income and would be easily able to repay the loan amount, you might have to pay a higher personal loan interest rate because of your low CIBIL Score. You can use the EMI calculator for personal loan to determine your repayment amounts and to make sure that your income is sufficient to repay the loan.

Lower Amount On Personal Loan

If you are able to convince the bank that you will be able to repay the loan amount, there are chances that the bank might approve your personal loan application. However, the banks might not approve the amount that you applied for and instead would approve a smaller loan amount. Reducing the loan amount would simultaneously reduce the repayment installments and make it easy for you to repay the loan. You can get approval on smaller loan amounts even if you have a low CIBIL Score. However, it is advisable to avoid applying for higher amounts of personal loans as they can lead to rejection and can even have an impact on your CIBIL Score.

Guarantor Or Co-applicant To Ensure Loan Safety

Having a low CIBIL Score can even make it difficult for you to obtain a personal loan. However, applying with someone who has a high score as a co-applicant or providing a guarantor can make it easy for you to obtain a personal loan. The other applicant will also have to provide their KYC details and other formalities at the time of loan application. Banks approve personal loans with co-applicants or guarantors that have a steady source of income and a high CIBIL Score as it ensures that the loan would be repaid on time and the applicants would not default. Check the personal loan calculator to know the EMI amount after applying it with a co-applicant.

Conclusion

These are some of the measures that you can implement to apply for a personal loan with a low CIBIL Score. Moreover, you can use tips on how to improve your CIBIL Score before applying to increase your score and then apply for a personal loan to get approval on your loan application. However, having a high CIBIL Score can make you eligible to apply for an instant personal loan. Moreover, you can learn more about CIBIL Score on the official GroMo Academy. Just download the GroMo mobile app and register using your bank account and KYC details to become a GroMo Partner. After successful registration, GroMo Partners can access a wide range of financial products that they can sell to potential customers to earn commissions. The list of financial and insurance products is available over the application that you can refer to potential customers within or outside your social network to receive a commission on every successful conversion.

FAQ

Can I get personal loan with low CIBIL score?

Yes, you can avail of a personal loan by involving a co-applicant or a guarantor if you have a low CIBIL Score.

Can I get loan if my CIBIL score is 600?

Yes, you may still be able to get a personal loan with a credit score between 600 and 700. However, it is important to understand that the lower your score, the lower your approved loan amount will be.

What if my CIBIL score is 300?

A CIBIL Score between 300 and 549 is deemed to be poor and it might be difficult for you to get approval for a loan or credit card with such a poor CIBIL Score.

Can I Check my CIBIL Score free online?

Yes, you can download the GroMo mobile app to check your CIBIL Score online for free.

Does bank check CIBIL score?

Banks and financial institutions check CIBIL score formerly before granting any loan. The higher your score, the higher your chances of getting approval on your loan application, and vice versa.