Chennai, the capital of Tamil Nadu, is the leading commercial center of South India. Home to several reputed IT companies, this metro boasts of a booming economy but experiences a high inflation rate at around 4.9%. As this, along with increasing lifestyle expenses, can decrease your purchasing power, you may consider taking an easy and quick personal loan to attend your goals. However, since lenders sanction a personal loan only if you have a credit score of 750 or above, you may wonder whether you can get a personal loan without the CIBIL score. While you, unfortunately, cannot do so, you can still get a personal loan for a low CIBIL score if you follow these tips.
Apply With NBFCs or Companies
Companies and NBFCs have lenient approval guidelines compared to traditional lenders like banks and look beyond your credit score to approve your loan application. If you can prove that you can repay the debt in time, you can increase your chances of qualifying for a personal loan for a low CIBIL score. However, be prepared to pay a higher interest in such cases. In terms of a company, you are usually offered an amount against your salary and for a short duration. In contrast, you can get a loan of a substantial amount and a lengthy tenor from NBFCs, but a marginally high-interest rate is what they use to safeguard themselves against the risk of your defaulting on repayment.
When scouting for a personal loan in Chennai when you have a low credit score, simply apply with leading NBFCs like Bajaj Finserv. Here you can enjoy high sanctions at competitive interest rates and get to access other attractive benefits that elevate your borrowing experience. With a Bajaj Finserv Personal Loan in Chennai, you can access up to Rs.25 lakh as a salaried individual in just 24 hours of approval.
The simple personal loan eligibility criteria here and minimal documentation increase your chances of qualifying for the loan and also ensure quick approval. You can also make the most of the Flexi facility, where you can borrow as you go, multiple times, to meet unpredictable or recurring needs for finances. As you pay interest only on what you actually withdraw, you stand to save more. Further, you can pay interest-only EMIs throughout the tenor and repay the principal at the end and thus lower your EMIs by up to 45%!
Add a Guarantor or a Co-Applicant
Next, you can secure a personal loan for a low CIBIL score by adding a co-applicant or a guarantor to your application. Make sure that this person earns a good salary or has a hefty business income, and a high credit score before you proceed. This way, your lender will review your application as less risky as the repayment responsibility is either shared between multiple applicants or backed by a guarantor.
Apply After a Hike in Income
Declaring a salary hike will also increase your approval chances for a personal loan in Chennai as salary has a direct bearing on your repayment ability. If you are expecting a salary hike, wait for it before applying for a personal loan. If not, request your employer for a hike or take up a second job. Disclosing additional sources of income like rents, dividends or interest earnings can also persuade the lenders to sanction your personal loan with a low CIBIL score.
Request For a Lower Amount
Lenders don’t approve a high loan amount for a borrower with a low credit score as they may fear that you are likely to default during repayment. So, when applying for a personal loan with a low credit score, request for a lower loan amount and your application may be approved.
Correct Errors in Your CIBIL Report
Lastly, it may so happen that you have a bad credit score due to certain errors in your credit report. In this case, contact CIBIL and review it. Errors may normally occur due to delays in updating your loan account closure or credit card payments, which may lower your score. If you find any discrepancies, get them corrected and you’ll see your score boosted. This way, you’ll be all set to apply for a personal loan.
These tips will certainly help you secure a personal loan on a low to moderate CIBIL score. However, this should be your starting point to build and maintain a good credit score for the future. Before applying for a personal loan in Chennai, check your pre-approved offer from Bajaj Finserv to enjoy instant approval on a deal tailored for you! This may be your easiest ticket to a convenient and affordable personal loan.