Here Is How You Can Get A Loan In Spite Of A Low Cibil Score | Money In Minutes

1. HERE IS HOW YOU CAN GET A LOAN IN SPITE OF A LOW CIBIL SCORE There are many rounds of checking a person's financial background before giving them a loan. Banks and other financial agencies often conduct multiple checks into the economic behaviour of an individual. One of the most important factors they give special consideration to is a CIBIL score. It is considered as an indicator of the reliable economic behaviour of the borrower. It is certainly difficult to secure a personal loan with a low CIBIL score. What Is A CIBIL Score? CIBIL stands for Credit Information Bureau India Limited, which is a credit information company. This institution maintains all the records of an individual related to credit activities, it includes loans as well as credit cards. A CIBIL score is a consumer's credit score. It is a 3-digit numeric summary of a consumer's credit history and a reflection of the person's credit profile. A CIBIL score helps in determining is it safe or not to give a loan to the borrower. It works on numbers, the higher the number, the more will be the chances to qualify for a personal loan. A CIBIL score ranges from 300 to 900. How Does A Person Reach A Good CIBIL Score? A CIBIL score is evaluated on the basis of a person's financial history related to repayment details across different loan types and institutions. Apart from evaluating the repayment behaviours against loans, a CIBIL score also pays considerable attention to credit cards. A person with a high score can get loans easily when compared to a person with a low CIBIL score. Different lending institutions have different criteria for what a good CIBIL score is. Mostly, institutions demand a high CIBIL score to lend out a personal loan. However, ​loans for low CIBIL scores​ like 550 are also granted by some lending institutions, such as Non-Banking Financial Companies (NBFCs). But still, formal financial institutions do not give a personal loan without CIBIL. Generally, a score above 650 is required for personal loans from banks. Hence, before applying for any kind of loan from any bank or financial institution, you must check your CIBIL score to know whether you are eligible for a loan or not. If you want to apply for a personal loan and you are a CIBIL defaulter as the result of your bad financial history, you will have to face great difficulty to get a personal loan. Hence, it is very important to keep your CIBIL score as high as possible, so you have a smooth path to qualify for a personal loan as a low CIBIL score is hard to find. Since the CIBIL score is calculated keeping past financial actions in mind, it can not be changed overnight. However, it is not impossible to change your CIBIL score. There are certain ways by which you can achieve a higher CIBIL score. Such actions include things like eliminating your credit card

2. balance, paying your EMIs on time, increasing the credit limit, and keeping old debt accounts that were paid on time on your record. How You Can Get a Loan In Spite of a Low CIBIL Score? When banks disqualify your application for a loan and you don't know how you will manage your needs or emergencies, here, the Gold loan comes to the rescue. Gold loans are the best alternative for a personal loan. Gold loans have various benefits attached to them. The best one is that a gold loan is an instant loan without CIBIL. Also, in comparison to a personal loan, a gold loan often comes with low-interest rates which makes it an ideal and affordable option for a loan. Moreover, gold loans also have many flexible repayment options, you can repay the loan amount as and when required according to your financial situation and choice. You have to deposit your gold objects to the lending institution as a security for the loan amount that is being lent to you. It is a very hassle-free process that can be done within some minutes. Not only is this a fairly shorter process when compared to other loan methods, but it also does not require a pile of documents and forms you need to submit in other loans, it is a comparatively simpler one with no documents required other than KYC (Know Your Customer). Moreover, Gold loans also help to build a positive credit history. In this way, you can get a loan in spite of a low CIBIL score with ease. However, you should still try to maintain a high CIBIL score as it can help get a personal loan easily. You can also apply for ​cash loans online​ as they are easily available and don't take much time. Original Source: https://blog.moneyinminutes.in/here-is-how-you-can-get-a-loan-in-spite-of-a-low-cibil-score/