The credit score is one of the most crucial parameters determining your loan eligibility. However, if you need a loan but don't have a good CIBIL score, it does not mean you cannot qualify for a loan when required. There are ways to obtain a 50000 Rupees loan with a low CIBIL score. Let’s look into them.
How to Get a 50,000 Loan With a Low CIBIL Score?
Although getting a 50,000 loan with a low CIBIL score comes with limited options, here are a few ways to increase your chances:
Show you Earn Enough to Pay Your EMIs on Time
Lending institutions may perceive sufficient repayment capacity if you show them enough earnings to pay your EMIs on time. Mention all your income sources in the loan application to improve your approval chances.
Get a Guarantor or Apply with a Co-Applicant
If your income or credit score is low, you can add a co-applicant or guarantor to your application to enhance your approval chances. It will make your application less risky for the lender, convincing them to approve your loan with better chances of timely repayment.
Request a Reduced Loan Amount
If your credit score is low, the lender will avoid putting a larger amount at risk by lending it to you. However, they may agree to sanction a smaller loan due to the lower risk involved.
Check Your Credit Report for Errors
Errors in the credit report are common. If your credit score is low due to a mistake or wrong entry in your credit report, file a dispute to correct the error. It will instantly boost your credit score and improve your loan eligibility.
Also, Read: How To Get Instant Personal Loan for Low CIBIL Score?
How Can a Low CIBIL Score Impact on Your Personal Loan Application?
A low credit score may impact your chances of getting a Personal Loan in the following ways:
1. Reduced Loan Amount
A low credit score will make you a high-risk borrower with high chances of missed EMIs and default. Even if a lender agrees to approve your loan application, they may offer you a lower loan amount to minimise their lending risk.
2. Limited Loan Options
When you apply for a 50,000 Personal Loan without a CIBIL score, only a few lending institutions may agree to sanction your loan. That means you have fewer loan options to compare and finalise.
3. Potential Rejection of Loan Application
Getting a 50,000 Personal Loan with a low CIBIL score is challenging. Since lending institutions need assurance of timely repayment, a low credit score may give them a good reason to reject your loan application.
Eligibility for a 50,000 Loan on a Low CIBIL Score
Here are the eligibility conditions to apply for a 50,000 loan without a CIBIL score:
- Occupation: Salaried or self-employed
- Citizenship: Indian
- Age: 21 to 58 years
- Work Experience: Minimum six months for salaried and two years for self-employed
- Monthly Income: At least Rs 15,000 per month
Also, Read: How to Get Urgent Personal Loan for Cibil Defaulters
List of Documents Required for 50,000 Loan without CIBIL Score
When applying for an instant Personal Loan for a low CIBIL score, you must scan and upload the following documents online:
- Duly filled application form
- Coloured passport-sized photograph
- Identity proof: driving licence, passport, PAN card, Aadhaar card
- Address proof: driving license, passport, Aadhaar card, ration card, utility bill
- For salaried employees:
- Address proof, like maintenance bills, utility bills, property documents, or rent agreements
- Income proof, like the last six months' salary slips, the previous six months' salary account statement, Form 16 for salaried employees
- Job continuity proof, like an appointment letter from the current employer or an experience certificate from the previous employer.
- For self-employed professionals:
- Residence ownership proof, like maintenance bills, electricity bills, or property documents
- Business existence proof, like shop establishment proof, a copy of tax registration, or a company registration certificate
- Income proof, like the last six months' bank statements and ITR for the previous two consecutive years
What is the Interest Rate on 50,000 Loan without CIBIL Score
Be ready to pay these interest rates and additional charges when applying for a 50,000 Personal Loan with a low CIBIL score. Here are the charges at Hero FinCorp. However, these may vary depending on the applicant’s credit profile.
|
| Fees & Charges | Chargeable Amount |
| Interest Rate | Starting at 11% |
| Processing Fee | 2.5% to 3.5% |
| Foreclosure Charges | 5% + GST |
| EMI Bounce Charges | Rs 350/- |
How to Apply for a 50,000 Personal Loan with a Low CIBIL Score?
If you fulfil the eligibility criteria and documentation requirements, follow these steps to apply for a 50,000 loan without a CIBIL score from Hero FinCorp:
- Download and install the Hero FinCorp personal loan app or visit the website.
- Register using your mobile number and email address.
- Enter a few necessary details like your personal, professional, employment, and financial information.
- Scan and upload the required documents.
- Let the verification process complete and get approval with a loan offer.
- Accept the loan offer to initiate the disbursal process.
Also, Read: How You Can Get A Personal Loan With Credit Score 600
Conclusion
Are you looking for a 50,000 loan without a CIBIL score? Use the ways mentioned here to improve your approval chances. Although Personal Loan interest rates might be higher than normal, they can help you build a credit history and get better loan deals in the future. You can apply for a Personal Loan with Hero FinCorp to evaluate your loan eligibility and get the required funding despite a low CIBIL score.
Frequently Asked Questions
1. How much can I borrow instantly without a CIBIL score?
You can borrow up to Rs 5 Lakh at Hero FinCorp. However, your loan approval will depend on your income, DTI ratio, and other eligibility criteria.
2. What are the repayment terms for a loan without a CIBIL score?
Depending on the lender’s approval, you can opt for a repayment term of up to 60 months when borrowing a 50,000 Personal Loan without a CIBIL score.
3. Will taking a loan without a CIBIL score impact my credit history?
Your credit score will improve if you pay your EMIs on time and deteriorate if you miss EMIs or default.
4. Are there alternative ways to build credit if I don't have a CIBIL score?
Using a credit card or obtaining a line of credit and making their repayments on time are alternative ways to build credit.
5. Can I get a ₹50,000 personal loan on Pan Card?
Yes, you can get a 50,000 personal loan on your PAN card from various lenders if you meet their eligibility criteria.
Disclaimer: The information provided in this blog is based on research. The amount of a personal loan can vary based on your CIBIL score, with a higher score often enabling you to qualify for a larger loan amount with favorable terms.
