Personal Loan for Low CIBIL Score

• Our eligibility check takes less than 2 minutes
• After your loan application is approved, the loan amount will be disbursed within 24 hours
• All our application and documentation process is 100% digital
• Avail a loan from anywhere in India without having to travel to banks or to agents

If you are looking for a ‘low CIBIL loan’ or ‘personal loan for low CIBIL score’, you can avail one from Money View as long as you meet the eligibility criteria given below -

• Applicants must be between 21 years and 57 years
• Applicants must receive an income of Rs. 13,500 or more*
• Income must be credited directly to the applicants’ bank account
• Credit score must be a minimum CIBIL score of 600 or minimum Experian score of 650

Note

• After your documents are verified, you will receive a NACH form which needs to be printed, signed, scanned, and sent back to Money View.
• This step will enable the auto-debit facility from your bank account and allow you to pay your EMIs on time automatically without the need for any manual intervention.
• On receiving your NACH form, you will need to review the loan agreement on the app. Please submit the application after reviewing all the terms and conditions thoroughly

It’s difficult to obtain a personal loan when you have a low CIBIL score. Even though Money View provides loans to those who have a lower credit score, it is important to improve it.

Here are certain things you can do in order to increase your CIBIL score.

1. Avoid delays in EMI payments and pay the outstanding debt on time. When you miss an EMI payment, you are forced to pay a penalty, and your CIBIL score decreases.
2. Old credit card accounts show a long and strong credit history, therefore it is important to avoid closing it. If you do not have other long-standing good credit accounts, your score will drop as credit history is also a factor determining your credit score.
3. Always choose comfortable tenures to repay your loan. That way you’ll be able to pay the EMIs on time. When you don’t delay EMI payments, your CIBIL score will increase gradually.
4. Make sure you have minimal loans during a fixed period. When you keep applying for credit again and again in a short period of time, the number of credit inquiries against you increases, thereby pulling down your credit score.
5. Check your CIBIL report thoroughly from time to time and correct mistakes if any.

Once you’ve understood and implemented the points mentioned above, you can confidently apply for a loan again. A lesser-known fact is that with a higher CIBIL score you may always approach your lender to reduce the interest rates. Yes, that’s a possibility! Ensure that your EMI payments are made on time and reap the benefits of a higher CIBIL score.

• Credit Worthiness:

The score helps lenders determine how trustworthy the borrower is. It demonstrates the borrower’s capacity to repay the loan amount based on previous repayment history and patterns. CIBIL score is the most important and accurate metric to gauge the applicant’s creditworthiness. And, borrowers with high CIBIL scores avail attractive loan benefits. 

• Lower Interest Rates:

Borrowers have to pay a small interest for taking out the loan. Based on the CIBIL score, each bank or lending institution charges different rates to the individuals. While higher CIBIL scores attract lower interest rates and minimal paperwork, lower scores incur the opposite. At times, applicants with lower scores might get rejected as well. So, a good score is pivotal for a personal loan.

• Faster Loan Approval:

The time it takes to get your loan approved and your CIBIL score are parallelly proportional. Therefore, higher scores lead to quick document processing and fast disbursement. Lower scores, on the contrary, incur strict scrutiny from the lenders.

• Higher Loan Limits with Longer Tenure:

Another advantage of having a high CIBIL score is that you can always negotiate for a higher loan amount. Since your high score speaks of your trustworthiness, lending agencies are often ready to offer high quantum amounts.

Additionally, individuals with a high score can avail loans with longer tenure. 

The table below will give a better idea of a good and a bad credit score.

A good credit score can help you attract lenders and creditors. Since it impacts your ability to borrow money, getting a sound credit score will help you in times of financial hardships. However, if your score is low, you need to first understand why it has dropped so low. Once this is done, work on improving it using the factors responsible for lowering it. Below, we have mentioned the factors that can lower your credit score:

• A bad credit utilization ratio (exceeding credit limit on credit card)

• Increased number of hard enquiries in the recent period

• Missed or late payments (delayed EMI, missed EMIs, non-payment of other dues)

• Unhealthy credit mix (a greater number of unsecured loans as compared to secured loans)

• Errors in credit report (fix the errors so as to improve score)

A higher credit score does open doors in times of financial crisis. But, there are financial lenders such as Money View, who lend to individuals with lower credit scores.