The need for a good credit score has become a primary requirement for availing any loans. However, the requirement for credit could come up at any moment for anyone, even for those with a bad credit score. Getting a loan in these kinds of situations may seem difficult, however, it is good to be informed that there are loans available for individuals with bad credit.
These loans come on the back of collateral or security that is pledged against the loan. Some of the generally accepted collaterals could be property, gold, fixed deposits, or securities in the form of insurance policies, stocks or mutual funds units. But the value of the loan will be limited to around 60-80% of the value of the collateral provided.
When individuals have a bad credit score, the lender takes a higher risk in lending to such individuals. Therefore loans to such people with bad credit are often made available with a guarantor signing a guarantee on behalf of the applicant. In case of any default on the part of the applicant, it is the guarantor who is liable to pay back the loan amount.
There are also unsecured loans available for individuals with bad credit without a guarantor. Generally, these loans are allowed to those with high incomes and good employment status by banks and other traditional lenders. However, a big saving grace is that there is no requirement of a guarantor for these loans.
The sources from which you can avail a no guarantor loan for bad credit are:
Banks and Financial Institutions
Banks and financial institutions allow personal loans for which are unsecured loans without a guarantor. Even though the lending norms of banks and financial institutions have been relaxed over the years, they still insist on either a good credit score at least if not the best credit score of 750 and above. A high income and employment with a reputed employer are also some of the other requisites.
And if you do not meet the income and credit score criteria, you may have to settle either with a higher than normal rate of interest, a lesser loan amount or lower tenure of the loan.
These are alternate lenders that are also called fintech lenders. Their loans are available online on their websites or apps. These personal loans are easy to avail even for those with bad credit.
There is also the option of availing a loan from a Peer to Peer Lending platform where common individuals can take on the role of lenders and lend to others who are in need of a loan without any checks on creditworthiness.
Among the many alternative or private lenders is Money View, who lends personal loans without any guarantor even to individuals with bad credit. The most important features of a loan from Money View are
Quick Eligibility Check: On the Money View website or on the app, you can instantly check your eligibility for a personal loan by submitting minimum details. There is no need for doing multiple rounds to the bank or talking to customer service agents to do this for you.
Paperless Process: Money View offers an entirely digital loan application process with absolutely no paperwork involved right from approval to disbursal.
Freedom to choose Amount and Repayment Term: You can choose any amount from Rs.10,000 to Rs.5,00,000 depending on your credit score. To repay the loan, you can choose a period of up to 5 years.
Speedier Disbursement: Your loan amount reaches your bank account in 2 business hours after the approval of the loan.
Convenient: Everything about the no guarantor personal loan from Money View is extremely convenient, right from the application to the disbursal of loan. The auto-debit facility makes it all the more convenient for even payment of EMIs.
No Guarantor or Collateral required: One of the important features of a personal loan from Money View is that there is no requirement for you to provide a guarantor or collateral for the loan availed. All you need to do is meet the loan eligibility criteria as specified by Money View and apply for the loan.
Low-cost: Personal loans applied through Money View are extended with interest rates starting at just 1.33% per month.
Anywhere in India: Digital application implies that you can apply for a personal loan from anywhere in the country and get it approved within hours.
Eligibility criteria can vary between the lenders. When it comes to personal loans without guarantors to those with bad credit, our eligibility criteria is very transparent and easy to understand for all our applicants.
Read on to find out more
|Income and credit score eligibility|
|Minimum In-Hand Income||Area of Residence||CIBIL Credit Score Requirement|
|Salaried Individuals||Rs 20000||Any||1-299 or New to Credit|
|Rs 20000||Mumbai/Thane or the NCR region (Delhi, Noida, Gurgaon, Ghaziabad, Faridabad, etc.)||CIBIL Score of 650 /Experian Score of 750 and above|
|Rs 15000||Metro City other than Mumbai and NCR||675 or above|
|Rs 13500||Any||CIBIL Score of 650 /Experian Score of 750 and above|
|Self Employed Individuals||Rs 25000||Any||CIBIL Score of 650 /Experian Score of 750 and above|
While availing a personal loan, interest rates, and processing fees and other charges matter a lot as they increase the cost of the loan. Money View personal loans are charged lower interest rates