Can I Get a Personal Loan for CIBIL Score of 550?

If you are looking for a personal loan or a loan of any kind, it is important to have a high CIBIL score. This is because a high CIBIL score is an indicator of your repayment ability and creditworthiness. Not only does a CIBIL score of over 750 guarantee an instant loan, you can also get one at reasonable terms and conditions.

But it is not easy to have and maintain a high CIBIL score. Sometimes, unexpected financial problems or mishandling of funds can cause your credit score to fall down. For eg. What if your CIBIL score is 550? Can you get a personal loan for CIBIL score of 550?

Personal Loan for CIBIL Score of 550

Personal loans are incredibly popular as they can be used for multiple reasons and don’t need collateral. However, as these are unsecured loans the interest rates tend to be on the higher side and the eligibility criteria is stricter as compared to other secured loans such as home loans and auto loans.

This is why most personal loan providers require applicants to have a credit score of 750 or more. However, there are a few lenders such as Money View that offer personal loans to even those whose CIBIL scores are on the lower end of the spectrum, as long as it is above 600.

The next question would be whether you can get a personal loan for CIBIL score of 550 in India. The answer is that it will be quite difficult. While you may find lenders who provide a personal loan for CIBIL score 550, the terms and conditions will be unfavorable. This is because the lender will have no faith in such as the borrower's repayment ability and will therefore avoid providing a loan.

If the loan is sanctioned, the interest rates will be exorbitant, even going above 40% per annum, the repayment term will also be low. Additionally, you will not be able to get a high loan amount either.

What Steps Can Be Taken Instead?

Instead of applying for a personal loan, borrowers can try to borrow from funds from other options given below -

How Can You Improve Your CIBIL Score?

Here are some steps you can follow in order to increase your CIBIL score at the earliest -

To know more about how you can improve your credit score, check out this article.

Money View Personal Loans

One of the foremost loan providers in the country, Money View offers personal loans of upto Rs. 5 lakh. You can get these loans within 24 hours by applying through the website or app and the entire process will take minutes. Not only that but the documentation requirements are also quite minimal.

The best part? Even if your credit score is on the lower side, you do not have to worry because Money View uses a unique credit rating model which means that even if your CIBIL score is below 750, you can still get a personal loan. However, you will need to have a minimum CIBIL score of 600.

Frequently Asked Questions (FAQs)

Ans: It will be difficult for you to get a personal loan for CIBIL score 550 anywhere in India. Even if you do, the interest rates will be very high. Therefore, it is important to improve your CIBIL score first.

Ans: If you wish to avail a personal loan from Money View, you will need to have a minimum CIBIL score of 600.

Ans: No, a CIBIL score of 550 is quite bad. Only a score of 750 or above is considered to be good. This article explains the breakdown of CIBIL scores in detail.

Ans: If your CIBIL score is low, then the interest rates will be quite exorbitant. For a score of 550, interest rates can go upwards of 40% per annum.

Ans: There are a number of ways to improve your score. Some tips include repaying your debt on time, not taking unnecessary loans, keeping a low debt-to-income ratio, etc. Here’s how you can get a high CIBIL score.

Ans: In order to get a personal loan from Money View, your Experian score has to be 650 or more.

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