In case you aren’t quite optimistic about your credit score and the overall credit history, there are quite a few pathways to follow, for getting hold of a personal loan. However, not every financial institution is empathetic towards a sub-par CIBIL score. Therefore, it is important to choose well, compare wisely, and tread carefully to get approvals.

How can you qualify for a Personal Loan?

CIBIL score for a personal loan needs to be higher for the approval process to go through. However, if you connect with a Non-Banking Financial Corporation, the credit score might not matter quite a lot. NBFCs often have a host of offers for individuals with middling credit scores. 

Are there any restrictions?

A good credit score is one of the few personal loan requirements. Then again, connecting with NBFCs can help you with an instant personal loan, provided you are willing to make certain trade-offs. In most cases, there might be a restriction on the loan amount. Apart from that, higher interest rates are quite common, especially when your credit score is average or rather bad. 

Why take a Personal Loan despite Bad Credit?

Although it might seem that a person with a bad credit score will generally refrain from credit lines, a majority of individuals opt for the same to pay off the high-interest debts, like the revolving ones associated with a credit card.

Regardless of your pathway towards a personal loan, you must always compare options and consider the best interest rates, to refrain from any kind of financial burden that plummeted your credit score in the first place.

Must Read: Do’s and Don’ts While Taking a Personal Loans in India