How to get a personal loan online with a low CIBIL score
A personal loan is an easy to use option to meet various expenses as it has no end use restrictions. However, since it is an unsecured loan, it becomes extremely important to fulfill the eligibility criteria to get loan approval. If you have a low CIBIL score, you can still apply for a personal loan online and get approved using several strategies.
6 ways to get a personal loan online with a low CIBIL score
Below are some ways to secure a online personal loan despite a lower CIBIL score:
A lender may reject your loan application as soon as they notice a low CIBIL score on your credit file. In such circumstances, you can opt for a lower loan amount. Generally, a lower loan amount implies a lower repayment risk. Therefore, there are chances that if you ask the lender, he will approve the loan.
You can opt for a loan jointly with a member of your family or a friend. Nevertheless, it becomes imperative that the co-applicant have a good credit rating. This way, lenders will know that at least one of the applicants is reliable and can trust you with the requested loan amount. Otherwise, if the other person’s credit score is also lower, it is extremely difficult to get an approval.
You can ask a friend or family member to be your guarantor. This lets the lender know they can trust you with the loan and can approach your guarantor in the event of default. Nevertheless, it is important that the guarantor has a good CIBIL score and an error-free credit report.
- Produce evidence to prove the ability to repay the loan
You can produce your income details as proof that you will be able to pay the monthly installments on time. Also, if you have a promotional scope in the near future, you can also provide these details to the lender. This would reassure them that despite a low CIBIL score, you will be able to pay your IMEs on time. This way they will be more inclined to trust you with the repayment of the loan and to approve your loan application.
- Troubleshoot errors in your credit report
Even if your CIBIL score is low, you should go through your credit reports to identify the main reasons for your low credit score. Also, if you notice any errors in your credit report, you should immediately report it to the authorities. You can do this by simply logging into the official CIBIL portal and registering the issue. Once the error is corrected, your CIBIL score increases significantly. At the same time, an error-free credit report can increase your chances of online personal loan approval.
- Make a serious request to your lender
In case of urgent need of funds, you can ask your lender to consider your emergency. For example, if you are seeking a loan to finance treatment, present the medical bill to the lender to let them know the urgency of the loan. Likewise, if you’re using the money to plan a wedding, submit pending bills. This would greatly increase the chances of getting your loan application approved.
Eligibility criteria for applying for a personal loan
Eligibility criteria vary greatly between financial institutions. However, some of the most common are:
- The applicant must be an Indian citizen
- Age must be over 21
- Must be an employee in a reputable company or self-employed
- Monthly income must be more than Rs. 15,000
- A credit score above 750
- An NTC score above 150 for a new candidate
- A minimum professional experience of 2 to 3 years
You can also calculate your eligibility for a personal loan simply by using an online calculator. You must navigate to the appropriate website and choose whether you are an employee or self-employed. Then enter the income value and EMI to get the desired results.
Documents required to apply for a personal loan online
The documents to be provided for an online personal loan application are:
- KYC documents such as Aadhaar card, voter card, PAN card or driver’s license.
- Bills such as electricity bills or telephone bills to verify your residential address.
- Pay slips for the last 3 months
Apart from these, the lender may ask you for additional documents which could increase your chances of loan approval.
You can use a personal loan to cover just about any expense such as planning a destination wedding, international travel, meeting emergency medical expenses, or funding higher education. Therefore, if you have a low CIBIL score, try using different strategies to improve it.