Whenever applying for a loan, your CIBIL score plays an important role in deciding how much interest you would have to pay. This CIBIL score is decided by the Credit Information Bureau (India) Limited who maintains a meticulous record of all credit-related transactions of companies across the country. This organisation decides your CIBIL score and banks and other financial institutions give out loans based on the score.
A low score generally means that either your loan will not be approved in conventional ways or you will be charged with a very high-interest rate. But nowadays, if you know your way around the financial market, you can secure yourself an instant loan without CIBIL restrictions to a great extent.
People with a low CIBIL score still have a better chance at loan than people with no CIBIL score at all. However, there are still ways for them to get that approval. We have listed down some of the tips that can help you get an instant loan without CIBIL score as well. There are several ways and once you wrap your head around all the options, you can easily detect which one will work the best for you.
Tips to Get an Instant Loan With Low Cibil Score or No Score
Update your Credit Score Card
Sometimes, CIBIL scorecards may show errors that can prevent you from getting loans. Thus, you must always update your score before you apply for a loan anywhere. It refreshes your payments and you may get a new score.
Find Lenders Who Accept Low CIBIL Scores
Different lenders have a different cut-off for loans. People with low or no credit must try to broaden their search and find a lender who accepts their credit score and lends money. Try not to approach only the banks and institutions you know. Try looking for new institutions as they try to rope in customers by offering them an instant loan with CIBIL score below 650 or even less.
Some lenders may be willing to extend loans to people with low CIBIL score.
Show Increment in Income
In case you have a low score and banks have turned down your application, you can get a new source of income and show its evidence in the bank. If you get a raise in your salary or manage to find another source of income, banks or other financial institutions may agree to sanction your loan. It is very important for them to make sure that you have the means of paying back the money. And thus, when they see your income has increased, they would be happy to sanction an instant loan with CIBIL consideration to a great extent.
Get a Guarantor
If your credit score is zero, you are unlikely to get a loan all by yourself. In that case, you can ask your parent or sibling (who has a CIBIL score over 700) to act as a guarantor. Banks happily give loans against guarantors who have a good record.
Apply for Joint Loan
A lot of people who want an instant loan with CIBIL score being low, often take a joint one with their partners if the latter has a good score. When calculating the CIBIL in case of a joint loan, both partners’ scores are considered. This brings up your score naturally.
Take a Loan in Your Spouse’s Name
In case your score is almost nil, getting a joint loan would not be the best option. This could also bring down the score of your spouse. Here the best option one can opt for is taking the loan entirely in the spouse’s name. This will help you get the best market rate without diminishing your partner’s record.
Unsecured loans like personal loans and credit card loans are difficult to get with a low credit score. They either disapprove of people with low credit scores or charge a very high interest rate. In such a case, you can opt for secured loans. This lowers the risk for lenders as they issue your loan against some kind of security such as mutual funds or shares, a house, fixed deposits, PPF etc. You can free your assets once you have cleared the loan. This is a great way to secure an instant loan without CIBIL score making much of a difference.
Thus, there are several ways of getting your loan approved despite having a low CIBIL score. However. One must not take these ways for granted and pile upon themselves a mountain of loans. It is also very important for you to improve your credit score so that you get more opportunities to take loans. Use these options to get an instant loan without CIBIL score playing too big a role only when it is an emergency. Also, use that loan to improve your score by paying it on time.