Ravi, a professional from Nagpur, could not get a loan because of his bad credit score.

Ravi wanted a loan to fund his personal expenses and was desperately looking for a solution.

Then he found the perfect solution in unsecured personal loans. But his bad credit history was bogging him down. The fear of rejection because of a bad CIBIL score prevented him from applying for a Personal Loan. Ravi’s friend, Aditya, came to his rescue. He told Ravi the different ways to get a personal loan despite a bad credit score. To Ravi’s delight, the information proved a godsend.

Both non-banking financial institutions (NBFCs) and banks give personal loans. Individuals have to take certain steps to avail low CIBIL score personal loans. Here are the details:

  • Include Your Spouse or a Relative as Co-borrower

You might not have a good credit score but you could use the score of your working spouse. If your spouse has no income, consider any other earning relative. They could be your brother, father, mother, or other relations with a good CIBIL Score. When you have a co-borrower, the lender looks at your combined income. This increase your chances of getting a personal loan. In this case, you can get a personal loan without a CIBIL check.

  • Get a Guarantor

A guarantor guarantees the repayment of the loan on behalf of the borrower. This assures the lender about repayment and cuts down on default risk. If you have a bad credit score, add an individual with good credit to act as your guarantor. If you get a guarantor’s backing, you can avail a personal loan even with a bad credit rating.

  • Show off an Increase in Income

A promotion or a job change may increase your income. It also makes it easier to get a personal loan with a bad score. Lenders are concerned about the loan’s repayment. A bad score does not reflect well on your repayment potential. But if your income has improved lately, it can act in your favour. You will need to show some documents to establish your income. These would be bank statements, tax returns, and salary slips, among others. You have to submit these to the lenders before you get the loan.

  • Pledge Your Assets

People with bad credit can avail a personal loan if they pledge their assets as collateral for the loan. By pledging collateral, you nullify the default risk and get the loan.

Also Read : How Much CIBIL Score is Required to Get a Personal Loan

Ravi checked the eligibility criteria to apply online for a personal loan. He decided to pledge his fixed deposits and life insurance policy. He qualified for the loan and submitted the documents required by the lender. Thus, he was able to get a personal loan despite his bad CIBIL Score.

A bad CIBIL score is not the end of the road when you are seeking a personal loan. If you know how to get a personal loan without a CIBIL check, the loan is not hard to come by. So, do not get disheartened by a bad CIBIL score. Your personal loan is just a step away.

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