How To Get Instant Personal Loan for Low CIBIL Score?

Personal Loan with Low CIBIL score

Personal Loans are collateral-free loans you can quickly and easily obtain without any security, collateral, or guarantor. However, when you apply for a Personal Loan, the lending institution looks at several factors to determine your eligibility for a Personal Loan. A credit score is one of the most crucial factors NBFCs consider, as it indicates how likely you are to qualify for a loan and repay it responsibly.

Usually, lenders prefer individuals with high credit scores to approve loan applications. Such applicants get lower interest rates and better loan terms due to the low risk involved for the lender. But what if you are looking for a low CIBIL Personal Loan? Most loan providers consider low-score individuals as risky applicants and are likely to reject their applications. While a low CIBIL score reduces the chances of getting a Personal Loan, you still have a chance. Here are a few things to know about a low CIBIL loan.

Also Read: What is the Process for Personal Loan

What is a CIBIL Score?

The credit score reflects financial habits and indicates how well you handle credit according to your current liabilities and income. It is a numerical expression between 300 and 900 that credit bureaus calculate based on your repayment history, credit type, duration, current credit liabilities, and credit exposure. A lower score indicates poor credit management, while a higher score presents you as a creditworthy borrower and increases your chances of loan approval.

How Does the CIBIL Score Work?

Here is how CIBIL calculates the credit score based on the:

• Repayment history: 30%
• Credit exposure: 25%
• Credit type and duration: 25%
• Credit inquiries and applications: 20%

So while looking for low credit score loans, maintain a high credit score by paying all bills and loan EMIs on time, keeping the credit utilisation ratio below 30%, diversifying the credit portfolio, and borrowing sparingly.

Also Read: 6 Ways A Personal Loan Can Help You Manage Your Big-Ticket Purchases?

How to Get a Personal Loan for a Low CIBIL Score?

The CIBIL score measures your credit portfolio based on your credit history, credit amount, repayment history, and other factors. That is why we gauge your repayment capacity and risk factor by checking your credit score. While many believe that it is impossible to get a low CIBIL loan, here are a few measures you may implement to make it happen:

• Prove a Good Income to Support Timely EMI Payments

  A recent hike in salary or an additional income source can encourage our team to consider your instant loan for a low CIBIL score. Communicating a steady income and stable job to our team might encourage us to grant the loan irrespective of the credit score. However, the interest rate may be higher when you prove eligibility for a Personal Loan in this manner.

• Apply for a Lower Loan Amount

  Applying for a high loan amount with a low cibil score loan app usually means more risk to the loan provider. From the lender’s perspective, we will bear a high loss if you default on repayment. However, applying for a smaller loan for a low CIBIL score reduces our risk and makes us feel confident in granting it.

• Secure a Guarantor or Apply with a Co-Applicant

  Availing of low credit score loans becomes easier by involving a guarantor or co-applicant with a decent CIBIL score. Since their income and credibility will increase your eligibility, we will feel more confident in sanctioning the application. However, remember that finding a guarantor or co-applicant takes work, as they will have to take the responsibility of repaying the loan in case of a default. Co-apply with a high-score individual to secure a Personal Loan for a low CIBIL score from Hero FinCorp.

• Check the Credit Report to Correct Any Errors

  CIBIL reports may contain errors related to identity, financial information, credit history, repayments, etc. Such errors may bring the credit score down due to no fault of yours. That is why it is essential to check the credit report frequently and identify any errors to get them corrected. You can get one CIBIL report for free in a year, which you must study carefully and correct if it contains any errors. Doing that will boost the credit score and improve the chances of getting a Personal Loan without CIBIL check.

• Request the lender to Consider NA or NH in Your Credit Report

  The NA or NH in the credit report indicates an absence of any credit-related activity in the past 36 months. In such a situation, we may find no or very low credit scores in the CIBIL report. Therefore, you should speak to us, explain your credit inactivity, and consider the NA or NH in the credit report. Our team may agree to approve the loan but may be at a higher interest rate.

Also Read: Everything to Know About a Line-Based Personal Loan

Eligibility Criteria To Get Personal Loan For Low Cibil Score

Looking for a Personal Loan but worried about your low CIBIL score? Don't fret! We have flexible eligibility criteria in place to help individuals with low credit scores. Here's what you need to know:

• Employment Type: We welcome applications from both salaried and self-employed individuals.
• Age Criteria: To qualify, you need to be at least 21 years old and not exceed 58 years of age.
• Low CIBIL Score Friendly: We understand that financial setbacks can happen to anyone. Even with a low credit score, you still have a chance to secure a Personal Loan.

Our goal is to provide financial assistance to those who need it most. So, regardless of your credit history, explore the possibilities with our personalised loan options. Don't let a low CIBIL score hold you back; apply today and take a step towards fulfilling your dreams.

Credit score	Good or Bad?	Chances of Approval
300 - 549	Very Bad	Impossible
550 - 649	Very Bad	Extremely low
650 - 699	Satisfactory	Possible
700 - 749	Good	High
Over 750	Very Good	Extremely High

Low Cibil Loan Interest Rates

Looking for low CIBIL loan interest rates? We've got you covered! At Hero FinCorp, we understand how much affordability matters to you. With the competitive rates, you can now avail loans at lower interest rates, tailored to your financial needs. Our streamlined application process ensures quick approval and hassle-free disbursal, so you can get the funds you need for a Personal Loan with a bad cibil score without delay. Don't let high-interest rates hold you back; take advantage of our low CIBIL loan interest rates today and achieve your financial goals with ease! Here are the rates:

Fees and Charges	Range
Interest Rate	11% - 35%
Foreclosure Charges	5% + GST
Processing Fees	2.5% - 3.5%

Instant Personal Loan App for Low Cibil Score

Hero FinCorp's instant Personal Loan app (previously known as SimplyCash) is one of the best options in India. It allows you to get a Personal Loan quickly, without CIBIL score Personal Loan check. You can borrow up to Rs 5 Lakh and receive the money directly in your bank account. The app offers affordable interest rates, and you can choose a repayment period of 6 to 24 months. It's perfect for covering medical expenses, travel costs, or any other financial needs. Download the Hero FinCorp instant Personal Loan app now and enjoy fast and easy borrowing, without your CIBIL score.

Importance of CIBIL Score for Personal Loans

CIBIL is a reputable credit agency authorised by RBI to calculate credit scores for citizens taking credit. The CIBIL score ranges from 300 to 900 and strongly indicates your creditworthiness and affects the chances of approval. It depends on your existing debts’ repayment records, credit duration, and diversity, etc. Maintaining a high credit score projects you as an ideal candidate for obtaining new loans. Conversely, a low credit score reduces the chances of approval and convinces the lender to charge higher interest rates. We at Hero FinCorp consider several other factors while determining eligibility for a Personal Loan, including income, job stability, DTI ratio, etc.

What are the Factors that Affect your CIBIL score?

Certain factors can significantly lower your CIBIL score -

• Credit Repayment History: Late payments or defaults impact your CIBIL score negatively.
• Owe to lenders: High outstanding debts and credit utilisation ratio can lower your CIBIL score.
• Credit Age: Limited credit history or short credit account duration may negatively affect your CIBIL score.
• Errors in your CIBIL Report: Inaccurate information in your CIBIL report can lower your credit score unjustifiably.

Using Hero FinCorp instant loan apps without CIBIL also known as the online loan apps without CIBIL is your solution for this.

Save the Credit Score from Dipping Further

If your credit score is low, don't stress or panic. Besides trying to improve it and finding ways to get a low CIBIL loan, implement these steps to prevent the score from dipping further:

• Avoid taking any more loans
• Use credit cards sparingly
• Repay overdue loan EMIs and credit card bills
• Improve your budgeting
• Ensure continuous report monitoring

These measures can help you obtain a Personal Loan for a low CIBIL score from Hero FinCorp. However, ensure having sufficient funds for loan repayment. If not, the credit score will dip further, and you will end up in a never-ending debt circle. We have straightforward eligibility for a Personal Loan criterion and a low credit score requirement to approve Personal Loans despite low credit ratings.

Frequently Asked Questions

1. What is the lowest CIBIL score for a personal loan?

CIBIL score requirements for personal loans may be different. However, for favorable loan approval, applicants generally need to have a score of 650 or above. Having a lower score may result in higher interest rates and even re­jection of the loan application.

2. Can you get a personal loan with a credit score of 500?

Securing a personal loan can prove challenging with a credit score of 500. Lenders tend to favor borrowe­rs with higher scores for loan approval, but one may explore other options.

3. Can I get a loan with a 450 credit score in India?

In India, having a credit score­ of 450 makes it challenging to secure­ a loan. Lenders pre­fer applicants with higher scores for loan approval. It is advisable­ to enhance your credit score­ before applying for a loan to bette­r your chances of approval.

4. Can I get a personal loan with a 532 credit score?

While a credit score of 532 may be considered low, some lenders may still offer personal loans. However, the interest rates and loan terms may not be as favorable compared to applicants with higher credit scores.

5. How to choose a lender when you have a low credit score?

When selecting a lender with a low credit score, consider these factors: Look for lenders (Hero FinCorp) who specialise in catering to individuals with low credit scores. Compare interest rates, fees, and repayment terms. Ensure the lender reports to credit bureaus, allowing you to rebuild your credit. Seek recommendations and read reviews to gauge their reputation.

6. Why is my credit score going down when I pay on time?

While paying on time is essential, several factors can cause your credit score to go down. These may include high credit utilisation, a significant increase in debt, recent late payments, or negative information on your credit report. It's important to maintain a healthy credit mix and review your credit report for any errors.

7. Which is the best online loan app with a low CIBIL score?

When it comes to online loan apps for individuals with low CIBIL scores, there are several reputable options available. Some popular choices include Hero FinCorp' instant Personal Loan app (formerly SimplyCash) that offers quick loan approvals, flexible repayment terms, and convenient digital processes, making them ideal for those with low credit scores.