Among all other loans, the personal loan is one of the easiest loans a person can get if he/she is not a CIBIL (Credit Information Bureau India Ltd.) defaulter. CIBIL defaulter means that a person has been a defaulter of previous loans.
If you are not a CIBIL defaulter then a personal loan is a good choice for you. However, the interest rate on the personal loan is high. A person can fulfill his monetary requirements. And can use it for multiple uses such as marriage, buying electronic equipment, etc.
Why the personal loan is easy to get?
- No collateral needed
- Can be given to low income
- Documents required are less
Although personal loan applications are processed within a day or less but for people who are CIBIL defaulter loan application can be denied.
The most common reason for the denial of a personal loan is when the applicant is a CIBIL defaulter. This means that such a person has previously defaulted the loan or delayed the EMIs or has too many loan payments balance resulting in a low CIBIL score. And such individuals are said to be CIBIL defaulters by banking institutions and personal loan applications are straight away rejected by the credit lenders. Your CIBIL score shows whether you are creditworthy and eligible for a loan or not. The low CIBIL score makes the banking officials think that you are likely to default payment in the future.
Is a Personal loan for CIBIL defaulters possible?
Opting for a secured personal loan
There is a way to get the personal loan complete information if you are a CIBIL defaulter. You can keep your assets, equities, fixed deposits, gold as collateral with the bank. Bank will consider offering you a personal loan without even checking your CIBIL score.
Raise your income or salary
If you had previously not paid the EMIs on time, your credit score must have gone low. But if you find a job where you get a high income and discuss this with the bank, then they will grant you a personal loan.
Get a loan in the name of another person in the family
A person can even take a loan in the name of his family members. For example, if a husband does not qualify for personal loan eligibility then he can simply take the loan in the name of his wife. Only if his wife has good repayment history with a good CIBIL score with the bank.
A loan from private companies
There are many private companies which offer personal loan without verifying the CIBIL score. However, in return, they charge a very high-interest rate. But this is another good way to get a personal loan.
Therefore, you do not have to worry even if you are a CIBIL defaulter because the above-mentioned ways to get a personal loan will help you get a personal loan approved for you by the banks and you can fulfill your instant financial requirements. However, the CIBIL score can become better with a mortgage.