Which Bank Provide Personal Loan for CIBIL Defaulters
Getting a loan can be difficult if you have previously defaulted on a loan. But there are still some ways to procure a loan from banks.
Read ahead to know which banks provide personal loans for CIBIL defaulters.
Who is Considered to Be a CIBIL Defaulter?
First and foremost, there is no official list of CIBIL defaulters. CIBIL does not maintain one.
However, here are the two reasons why someone might be considered a CIBIL defaulter -
- Failing to pay an EMI or credit card bills
- Delaying the payment of an EMI
- Settling a loan or closing a loan through settlement without paying the full due amount
All these three affect your CIBIL score and can reduce it drastically. They also show on the credit report which makes it difficult for you to get a loan.
In fact, if you settle a loan, it stays on your CIBIL score for up to 7 years.
How Can CIBIL Defaulters Get Loans?
Anyone can go through a rough patch that might have led to delayed or missed payments. That does not mean that you can never get a loan if you have defaulted once.
Here are some ways you can get a loan if you have defaulted or have a very low CIBIL score -
Opt for Secured Loans
If your CIBIL score is low, or you have defaulted on a loan, you can still choose to take loans against collateral. You can pledge any assets you might have, like gold, or property, and get a loan against it.
Find a Co-signer or Guarantor
Applying for a loan along with a co-signer or guarantor who has a high CIBIL score might be another option in such cases. It helps build trust in the lender and makes procuring a loan easier for you.
Turn Towards Other Lending Options
Getting a loan from a regular lender might be difficult with a low CIBIL score. At such a time, you can turn to online lenders or instant personal loan apps. You can also consider peer-to-peer lending, or taking a loan from your EPF account.
Work on Improving CIBIL Score
The most important thing is to not be discouraged and to start working on improving your CIBIL score slowly. Start paying your EMIs and credit card bills on time, don’t apply for too many loans, and maintain good financial behavior.
Which Bank Provides Personal Loan for CIBIL Defaulters?
There are some banks or lenders that specialize in lending to persons who have low CIBIL scores or might have defaulted in the past.
In general, you will be able to get loans from any lender with whom you might have an ongoing relationship. You might have to adjust with a lower loan amount than you needed, and a higher rate of interest though.
Even moneyview uses a unique technique to gauge the creditworthiness of borrowers, and you can get personal loans even if your CIBIL score is as low as 650.
How to Improve CIBIL Score After a Default?
The major goal you must have if you have defaulted on a loan should be to improve your CIBIL score. Here are a few steps that you can follow to do the same -
- Going forward, evaluate your finances and create a realistic budget that will let you set aside funds for timely debt repayments
- If you have any outstanding dues with a lender and they have marked your loan account as ‘default’, reach out to them. Offer to close the loan by paying the outstanding dues
- After paying the outstanding dues, raise a dispute on the CIBIL website, and get your status updated from ‘default’ to ‘closed’
- Ask for a NOC or a No Objection Certificate from your lender after you have paid your dues.
- Apply for starter loans, i.e. smaller loans that get approved easily. You might have to pay a higher rate of interest but it will help you to build a positive credit score
- Henceforth, pay all your credit card bills and loan EMIs in full within the respective due dates
- Maintain a Credit Utilization Ratio (CUR) below 30%
- Closely monitor your CIBIL report and dispute any inaccuracies or errors you spot
- Avoid applying for too many loans or making too many inquiries
- Use your credit cards responsibly, and spend only the amount that you can afford to pay off by the end of the month
Conclusion
Defaulting is unfortunately not uncommon. If you have defaulted but are still looking for a loan, you may be wondering which bank provides personal loan for CIBIL defaulters.
As mentioned above, while most banks do not offer loans to defaulters, there are certain lenders who still might offer financial aid. It is also important to work on increasing your credit score at the same time.
In case you have a low CIBIL score, you can apply for an instant personal loan from moneyview. Here, you can get loans from Rs.5,000 to Rs.10 Lakh, depending on your eligibility and requirement. To know more, check out our website or download the moneyview app now.
Which Bank Provide Personal Loan for CIBIL Defaulters - Related FAQs
The ideal CIBIL score for an HDFC personal loan is above 720. But the minimum CIBIL score they accept is 700.
CIBIL does not keep a list or record of loan defaulters. Your credit report has the required information if you have missed a payment or defaulted on a loan. This information stays on your CIBIL report for about 7 years.
No, you can’t get a personal loan or any kind of loan without affecting your credit score. Any credit product that you apply for contributes to your credit score.
It might be difficult for a bank defaulter to get a loan, but it is not impossible. They can always apply for loans with more lenient lenders, or opt for secured loans.
If the reason for defaulting is unfortunate and unavoidable, such as a health emergency, etc, that is referred to as a genuine default. In such cases, the bank or lender may often halt the EMIs, and wait for the situation to stabilize.
CIBIL Related Links
- How to Get a Personal Loan for CIBIL Score of 600
- Instant Loan Without CIBIL
- How to Get Personal Loan With Low CIBIL Score
- Can I Get a Personal Loan for CIBIL Score of 550
- What Is the Minimum CIBIL Score for Personal Loan
- Understanding About CIBIL Credit Score
- How to Clear CIBIL Problem
- Ways to Apply Loan for CIBIL Defaulters
- Details on CIBIL Score Range in India
- How to Increase CIBIL Score to 800
- How to Increase CIBIL Score from 600 to 750
- CIBIL /Credit Score
- How to Improve CIBIL Score After Settlement
- How to Increase CIBIL Credit Score
- Which Banks Use Experian Credit Score in India
- Does Increasing Credit Limit Affect Credit Score?
- Does Foreclosure Affect Your CIBIL Score?
- How to Increase CRIF Score?
- Is Credit Score And Cibil Score Same?
- How to Check CRIF Score Free?
- What Is Experian Score - How To Check and Importance?
- Check Experian Credit Score for Free
- CIBIL Commercial Report - All You Need to Know
- Top Credit Rating Agencies India
- DPD Full Form in Banking or CIBIL Report
- How to Raise Dispute in CIBIL
- What is a Good Credit Score
- What is Control number in CIBIL?
- How Is CIBIL Score Calculated?
- How To Increase CIBIL Score Without Credit Card?
- Does Checking CIBIL Score Affect it?
- CRIF Score Full Form
- CIBIL Score Full Form
- What is CIBIL Report And How to Download It?
- Does Paytm Postpaid Affect CIBIL Score
- How to Improve CIBIL Score After Default?
- Does Closing A Credit Card Affect Credit Score?
- Does CIBIL Score Affect Passport?
- Does Not Using a Credit Card Hurt Your Credit Score?
- Which Credit Score Do Banks Use in India?
- Factors Affecting CIBIL Score
- How To Increase CIBIL Score To 800?
- How to Improve Credit Score in 30 Days?
- Does Cheque Bounce Affect CIBIL Score?
- Does OLA Postpaid Affect CIBIL Score
- Does Gold Loan Affect CIBIL Score
- What is a Good CIBIL Score Range?
- Does CIBIL Score Affect VISA?
- How to Increase CIBIL Score from 300 to 750?
- How To Increase CIBIL Score From 500 To 750?
- CMR Full Form in CIBIL
- STD Full Form in CIBIL
- How to Remove Inquiry from CIBIL?
- How Much CIBIL Score is Required for Credit Card?
- How Many Times Can You Check CIBIL Score?
- Check CIBIL Score Free Online
- Is CIBIL Score Required For Education Loan?
- What is the Difference - CRIF Score vs CIBIL Score?
- Experian Credit Score vs CIBIL
- Does Credit Card Settlement Affect CIBIL Score?
- How to Check CIBIL Score Online Without PAN Card