A CIBIL score greater than 750 is considered a high score. Most lending institutions favor applications with a good credit score for unsecured loans. A credit score above 750 will earn the borrower competitive loan rates. 

However, If you have a CIBIL score of less than 750 and pass the personal loan eligibility check, you can still secure the loan. Wondering how? Let’s check it out.

How can you secure a personal loan despite a low CIBIL score?

• Analyse The CIBIL Score and Check for Misreporting

There are chances that you did not obtain a No Dues Certificate from the previous lenders after you closed your previous loan. Sometimes the credit scores may also get muddled up due to discrepancies in credit reply for reasons like not obtaining the NOC from an earlier lender or issues in the payment gateway. Checking your credit scores from time to time can help you spot discrepancies at the earliest and make amends in time.

• Show Proof of Repayment Capacity

The lender’s biggest worry is that the borrower may not repay the loan. Hence showing proof of your repayment capacity and explaining why the loans defaulted previously may persuade them to consider sanctioning the loan. Lenders usually are willing to consider genuine reasons and grant you a personal loan. 

• Apply for the Loan with a Co-applicant

Applying for a loan with a co-applicant with a good credit score can be favorable to getting a personal loan. The reason is that having a co-applicant has the lowest risk of lending. Taking a loan with a co-applicant will help you secure and improve your credit score by repaying the available loan on time.

• Go for a Lower Personal Loan

If the loan amount is small, the risk is limited. Hence there are chances that the lender will approve the loan, so consider applying for a lower loan amount and repaying it on time.

You can improve your credit score. However, it is equally essential to maintain the credit score once you improve it. If your credit score is low and you still want to apply for a personal loan online, get in touch with us, and we will help!

Additional Read: Things To Know Before Applying For A Personal Loan