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.
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 -
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.
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 -
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.
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.
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.
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.
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.
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 -
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.
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.
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