Personal loans are often saviours when a rough tide of financial crises pull you down. However, as they are unsecured and risky for lenders, these loans are sanctioned based on the CIBIL scores of the applicants. Hence the question arises: Can applicants apply for personal loans if their CIBIL scores fall short of the ranges set by the lender? If yes, what are the options? Know the cibil score required for personal loan. Here are some points.

Let’s explore the various options to obtain personal loans even with a low CIBIL score.

Personal loan for low CIBIL score applicants

CIBIL scores are the reflections of your credit management. Since in a personal loan there are no collateral submissions, the loan is sanctioned only to applicants who possess CIBIL scores of 750 or above. Any applicant with scores below 600 is considered weak. 

What reduces CIBIL scores?

• The applicant has availed multiple loans
• Exceeded credit limits
• Unpaid EMIs
• Too many rejections on loan applications
• Credit cards settlements made at lower amounts than dues

How to avail personal loans with low CIBIL scores?

• Apply for a joint loan with a family member who has a good CIBIL score
• Apply with a guarantor
• Apply to lenders who have corporate ties with your employer
• Certain NBFCs are relaxed on CIBIL scores, although the interest rates are higher.

Conclusion

Maintaining a good credit history helps applicants settle for loans with affordable interest rates. Although personal loans are sanctioned based on CIBIL scores, some workarounds can be employed to help applicants with low scores obtain personal loans.

Additional Read: How Good CIBIL Score helps to Get Personal Loan Approved?