Financial institutions measure your ability to repay the loan by checking the CIBIL score. CIBIL score is a 3-digit figure that ranges between 300 and 900. If you have a high CIBIL score; it indicates that you have a responsible credit history and proven loan repayment capability. It is advised to keep a CIBIL score close to 750 to avail a loan without any hassle.
However, individuals with a low CIBIL score can also have their loan application approved by keeping certain pointers in mind. Consider these tips to avail a low credit loan –
Apply with a co-applicant
If you apply for a loan with a co-applicant who has a decent credit score, the chances of loan approval increase.
Ask for a lower loan amount
It is advised to opt for a lower loan amount if your CIBIL score is low. When you ask for a lesser loan amount, the lender might feel more comfortable as the repayment will be easier for the borrower.
Prove that your income can sustain the loan EMIs
If you can convince your lender that you have a steady source of income and it is stable enough to consistently repay the loan EMIs, the lender may consider your loan application even if you have a low CIBIL score.
Provide collateral
It is advised to opt for secured loans by pledging collateral to increase your chances of availing a low credit loan. Financial institutions are less at risk while offering a loan against property, fixed deposits, etc. as they can sell or auction the collateral to recover the outstanding loan amount yet to be repaid.
Hence, keeping these above tips in mind, you can apply for a loan even if your CIBIL score is low. Know the best ways to use a loan against property to make the best of the financial assistance.
Additional Read : How to Apply for Loan Against Property with Bad CIBIL Score?
