Urgent Loan for CIBIL Defaulters in India

For individuals with CIBIL (Credit Information Bureau (India) Limited) defaulters, getting an urgent loan is challenging. CIBIL score is a crucial factor in obtaining a loan in India. Your poor credit score indicates a loan defaulter.

However, you can obtain an urgent loan with a poor credit score. Explore the simple tips and strategies for CIBIL defaulters.

Understand Details About CIBIL and Its Impact

CIBIL is India’s credit Information Company that collects and records individuals’ credit-related information like loans, credit cards, etc. The CIBIL report is understood through the CIBIL score. This score is generated with 3 digit score ranging from 300 to 900. The CIBIL score is calculated depending on various factors like bill payment, new credit inquiry, age of credit score, credit utilization, etc.

• Good CIBIL Score: 750 and above
• Average CIBIL Score: 600-749
• Poor CIBIL Score: Below 600

The lender understands the borrower’s risk-taking ability from this CIBIL score. Generally, lenders offer urgent loans for Good to Average CIBIL score holders. If your credit score is below 600, it’s difficult to secure a loan the traditional way.

Options for Urgent Loan for CIBIL Defaulters in India

Several routes are still alive to obtain urgent loans for CIBIL defaulters. Let’s check out below:

1. Non-Banking Financial Companies (NBFCs)

• NBFC companies such as Faircent, LendingKart, Indifi, and IIFL provide loans for low credit scores. They may charge higher interest rates compared to Banks but get loans urgently basic.
• These NBFC companies fletch creditworthiness with advanced algorithm software. Individuals with poor credit scores bypass hard inquiries.

2. Peer-to-Peer (P2P) Platforms

• P2P lending platforms like Faircent provide loans for CIBIL defaulters. This platform is a mediator that connects borrowers to lenders. The interest rate is slightly high but gets fast approval.
• You can also be part of a P2P platform through investing. You can invest your money and get maximum returns.

3. Secured Loans

• Get secured loans which are also known as collateral loans. Borrow secured loans such as gold loans, loans against fixed deposits, loans against property, etc. A collateral loan is helpful for poor credit score borrowers.
• Gold loan is a popular secured loan among others. Lenders give you gold loans based on gold valuation without a check credit score.

4. Personal Loans from Friends and Family

• Sometimes your friends and family are helpful to secure funds. You can convince your family member to get a personal loan. But you should take repayment responsibility on time. The approach is really helpful if you are unable to obtain a loan with a low credit score.
• The minimum Rs. 12,000 salary is straightforward for your loan approval process. It will complete your urgent fund requirement.

Also Read: Loan Apps Without Credit Score

Eligibility for Personal Loan for CIBIL Defaulters

• Your age should be under 21 to 55 years.
• Your salary must hit to bank account with a minimum of Rs. 12,000 salary.
• The job profile should be stable with 1 year of experience.
• A credit score of 650+ meets personal loan eligibility.

Documents for Personal Loan Defaulters

• Original Aadhaar Card copy
• Original Pan Card copy
• Utility bill / Property paper for Residential proof
• Recent salary slip copy
• 12 months salary deposit bank account
• Aadhaar card of guarantor

Strategies to Improve Your CIBIL Score

Improve your credit score for a healthy financial life. Make strategies to enhance your creditworthiness. Let’s dive into the following strategies:

1. Credit Utilization Ratio

• You must use credit card utilization below 30% of the total limit. This will positively impact your credit score. If you are using the maximum credit limit, your credit utilization ratio will be high which directly affects on CIBIL report.

2. Repayment of Existing Debts

• Borrower should maintain timely payment of existing debts. Make credit card bill payments on time which improves your CIBIL score.
• You can use auto-pay features to make automatic payments. This technique is helpful if you missed the payment date.

3. Debt Consolidation

• Take a debt consolidation loan and pay off your old debt which will automatically reduce your EMI amount and interest rate. This approach improves your CIBIL report.
• Your multiple loans come to a single one through debt consolidation. If you are running several loans, you should use these features.

4. Monitor Credit Reports

• Sometimes borrowers don’t not what is going on in credit reports. So, monitor your credit report regularly basic. CIBIL report shows any dispute you have made in recent or previous days.

5. Avoid New Applications

• Borrowers sometimes make huge mistakes in applying for loans with multiple lenders. This is indirectly damage your credit score. Each time hard inquiries can down credit score.
• Applying a new application is one good way to know the eligibility criteria of a lender. This will reduce loan rejection.

FAQS on Urgent CIBIL Defaulter Loan