How to get personal loan against CIBIL score of 600?
Has your loan application been rejected recently due to very low CIBIL score? Till now you do not even know what is this CIBIL score, then you do not need to worry much because there are many people here who do not know about CIBIL Score. This needs to be known as all banks and non-banking financial services companies offer personal loans based on CIBIL score.
Let us understand the concept of CIBIL Score:-
CIBIL Score is your creditworthiness score which is maintained by Credit Information Bureau of India Limited. Every loan or credit card you have availed is reported to CIBIL, and depending on how prompt and regular you are with your EMIs, your score either increases or decreases. There are many factors that determine and affect your credit score, but the primary criterion is how likely you are to repay your loan or credit card. For example, whenever you apply for an SBI personal loan or home loan or credit card, the bank will check your credit score before processing your request. This will ensure that your creditworthiness is strong so that they can get the loan installments on time.
Make sure to check your CIBIL score before getting personal loan approval
CIBIL scores your creditworthiness in the range of 300 to 900. A credit score of 800 or above is considered the best score. Banks will run after you to give you loan if your rating is high. A score between 699 and 799 is considered acceptable for a loan, a score above 600 is considered OK, and any score below 550 is considered bad, and you will be rejected for a personal loan. will be done.
Regular repayment of your loan and early repayment of the old loan increases the CIBIL score. CIBIL Score can go down due to several reasons:
- If you miss any of your loan repayments for a long period of time or regularly.
- If you have taken personal loan from many places.
- If you have high credit utilization i.e., you have taken too many loans or credit cards as compared to your total available credit.
- If there is a lot of inquiries about your CIBIL score by the bank, then it gives an impression that you are hungry for a loan.
- If you actually have a lot of loans going on at the same time, including a lot of unsecured loans, your credit score may get affected.
- Too many unapproved loan applications also spoil your credit score.
How to Apply for a Personal Loan with CIBIL Score 600?
You should first check your CIBIL score for personal loan and if after checking CIBIL score it is in 600 credit range then you may get a shock but the remedy is still available. By following a few basics, you can get a personal loan and boost your credit score again.
First of all check and rectify any discrepancies in your CIBIL score. The score tracking system of CIBIL is very simple. There have been many cases where people are tagged with someone else’s debts and defaults in their credit score tank through no fault of theirs. Check your detailed credit report and see that it should only contain your loan. If you find any discrepancy in your credit report, you can contact CIBIL online via email or phone to get the score rectified. This process may take some time, usually a month but it works well for the credit scores of most people who have been affected due to someone else’s mistake.
Show the bank that you have enough income to repay the loan. Gather your salary slip or income statement for the last 12 months. The objective here is just to assure the bank that you have enough income to pay your EMIs. If you have recently increased your salary, show your new salary to the bank. When banks see that you have a stable income, your chances of getting a loan increase.
Now that your CIBIL score is up to 600 then you can get a personal loan at a higher rate of interest. People with good credit scores get the best interest rates. Then there are the good category people who will get average deals in terms of processing fee and moderate interest rates. People who are in the 600 credit score range get higher interest rates and also have higher processing fees than other categories. You can negotiate with the loan agent to get some discount.
Ask for a loan from a co-borrower or guarantor. If you can get someone to sign up for a loan with you, the income you make will be clubbed with that person’s income. This will act as an assurance to the bank that someone in the process is responsible who will take the risk in case the original borrower defaults. The co-borrower or loan guarantor himself should have a good credit score and stable income. If the other person also has a low credit score, the situation can get worse, so make sure to check the other person’s good credit card beforehand.
Try asking for small loan amount. Higher amounts will be rejected as your credit score is low, so there is a possibility that the bank may have lower credit score criteria for lower loan amount. Talk to the loan agent to see if you will be given a lower loan amount. In most cases, it may be possible for those who can reduce their loan amount to be sought.
People with a CIBIL score of 600 can get loans from some NBFC companies that provide loans even with a low CIBIL score. Such as – Tata Capital, Bajaj Finserv, Aditya Birla Capital, IIFL Finance, HDB Financial Services. You must apply bar in these NBFC company.
In this article, we have covered all the chances of getting a personal loan for people with CIBIL score of 600.