Tips to avail of a Personal Loan despite a low credit score!

Are you worried that you may not be able to avail of a personal loan due to your low credit score? Here are few tips for wading through this situation! Read on.

Whether it's for a medical emergency, a family wedding, or a solo trip you've desperately wanted to take, Personal Loans come in handy whenever you need money on an urgent basis. They are relatively less cumbersome with minimal documentation and are processed much faster.

While they are unsecured loans and don't require you to offer collateral, your ability to repay the loan matters and must be verified with the help of your credit score, although credit score is considered as a foremost criterion, for these unsecured loans, there are ways in which you can mitigate your poor credit score and still avail of a personal loan.

To know more about IDFC FIRST Bank's Personal Loans, click here.

Here are top 5 tips that will help you to get a personal loan despite a low credit score:

1. Evidencing stability of income and additional income

If you have an additional source of income, then you need to highlight the same to your lender. You may have to provide proof of evidence that you have a stable income; if you have gained a hike or increase in salary, it will be prudent to bring that to the notice of your lender. This may help you avail of a personal loan despite a low CIBIL score, albeit at a higher interest rate. 

2. Co-applicant or Guarantor

Availing of a personal loan along with a co-applicant or Guarantor who has a decent CIBIL score can increase the chances of your loan approval considerably. If you choose either of these routes, the other party must complete KYC norms and signatures. As in the case of IDFC FIRST Bank – Personal loan, the entire process is carried out by leveraging technology.

3. Ensure the latest details have been updated

If the latest details have not been updated, your credit score could erroneously reflect a lower score. It is ideal if you can check your CIBIL score for free at regular intervals, this will increase your chances of availing personal loan at the time of need. 

4. Request lender to consider you with NA or NH in your credit report

The NA or NH in your credit report essentially means that you do not have a credit history or do not have any credit activity in the past 36 months. The lender may oblige to extend a personal loan at a slightly higher interest rate. 

5. Reduce the loan value 

You can choose to reduce the quantum of loan that you apply for, this will reduce the risk for the lender, and there are greater chances for approval of the loan. You can use the IDFC FIRST Bank's Personal loan EMI calculator to ascertain the monthly outlay. Consider extending the tenure of repayment, and this will lower the EMI. IDFC FIRST Bank – Personal Loan is available for flexible tenures up to 60 months; a longer tenure would reduce the EMI considerably. To know more about IDFC FIRST Bank's Personal Loans, click here.

These tips can come in handy to avail a personal loan even when your credit score is low. With Banks such as IDFC FIRST Bank – Personal Loans are completely digital and paperless. You can also avail up to Rs. 40 Lakh personal loan instantly at competent rates. To know more about IDFC FIRST Bank's Personal Loans, click here or download our mobile banking app. 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.