Personal Loans without Guarantor for Low Credit

How to Get a Personal Loan for Low Credit without Guarantor?

The credit score is one of the key determinants for personal loan approval. Financial institutions look for a credit score above 750 to sanction these loans quickly to borrowers.

Individuals with poor credit score can choose to nominate a guarantor. In case a guarantor is not available, they can opt for other alternative measures to avail a personal loan without a guarantor.

Measures for No Guarantor Loans

Take the following measures if you have a low credit score and no guarantor –

1. Apply with a co-applicant
   A co-applicant can improve chances of loan approval if you have bad credit. It enhances your loan eligibility and reduces the risk of repayment default as your cumulative income increases.
2. Show sufficient income
   Provide relevant documents to your preferred financial institution to show that you have ample income to repay a loan without guarantor from a direct lender. A higher income supports your repayment capability and improves chances of approval. It plays a major role in determining the amount of credit you can avail as an instant personal loan.
3. Opt for a lower loan amount
   Apply for a lower loan amount for improved chances of approval when you hold a poor credit score. A high loan amount signifies a greater risk to the financial institution when you hold a low CIBIL score and can result in rejection of a loan application.
4. Seek alternate lenders
   Several financial institutions put considerable emphasis on credit score for no guarantor loan approvals. Refer to lenders who require only basic eligibility for approval of a personal loan without a guarantor.
5. Improve credit score
   A high credit score increases chances of loan approval, especially for unsecured loans such as personal loans. Consider taking measures that can improve your CIBIL score to increase your loan eligibility.

Ways to Improve Credit Score

Adopt the measures mentioned below to improve your credit score –

• Choose a longer tenor for loans
  Opt for a longer tenor when you avail a loan to reduce the EMI amount and the chances of defaulting. It will lower the EMIs and ease the repayment procedure making it easier to repay the loans and improve your credit score.
• Do not apply for a loan with multiple financial institutions
  Avoid applying for loans with different financial institutions at one time. When you apply for a loan, the lender inquires about your credit score from credit rating agencies. Every such enquiry negatively affects your score. Hence, if multiple financial institutions perform credit checks, your credit score is reduced significantly.
• Make repayments on time
  Repay your dues such as credit card bills and loan EMIs on time to maintain an error-free repayment history and increase your CIBIL score over time.
• Lengthen credit history
  Maintain your old credit cards to lengthen your credit history, which positively impacts your credit score.
• Maintain a low credit utilisation ratio
  The credit utilisation ratio is a primary determiner of credit score. Avoid using more than 50% of your available credit limit to be considered as a less credit-hungry individual and improve your CIBIL score.
• Rectify mistakes in your credit report
  Check if there are any discrepancies in your credit report and accordingly rectify them with the respective credit rating agency.
  A credit score above 750 is essential to sanction personal loans without guarantor. You should be responsible with your credits to improve your CIBIL score to get increased chances of loan approval.

Personal Loan Part Prepayment & Foreclosure Charges

Does Bajaj Finserv check the CIBIL score of personal loan applicants?

Factors checked by Lenders to decide personal loan eligibility of a borrower

How is Interest Calculated on a Personal Loan?

What is Personal Loan Part Payment & How it Works?

What is Part Prepayment of a Loan?

What Is the Rate of Interest For A Personal Loan From Bajaj Finserv?

What is the interest rate offered on Personal Loans?

What are the different types of Personal Loan in India?

How to get small loans or instant cash loans?

Gold Loan vs. Personal Loan - Which One Should You Choose?

Which one should you choose - Personal Loan or Credit Card Loan?

What happens if you don’t repay a personal loan?

What’s the difference between secured and unsecured loans?

Can you get two Personal Loans or multiple Personal Loans at the same time?

When is it a good idea to apply for a Personal Loan?

How to calculate EMI on calculator?

What is the Letter of Continuity?

What is the eligibility criteria for a Personal Loan?

What is the usual tenure of a personal loan?

What is a personal loan?

Types of Charges & Fees on Personal Loan

Personal Loan Documents Checklist

What are Personal Loan Foreclosure Charges?

How to Prepay a Personal Loan?

How to Get a Personal Loan?

How do you ensure that you have a good credit score?

How to Calculate Foreclosure of a Loan?

How to Check CIBIL Score for Personal Loan?

How do you check your CIBIL score?

What is CIBIL score?

What is the difference between a personal loan and car loan?

What is the impact of GST on personal loans?

Can we use a personal loan for the down payment on house?

What is the personal loan disbursement process?

How to apply for a personal loan without documents?

What Are The Tax Benefits On Personal Loans?

What are the reasons to avail a personal loan?

How to Get a Personal Loan for Cibil Defaulters?

What is the Minimum Credit Score Required for Personal Loan Eligibility?

How to Check Bajaj Finserv Personal Loan Account Statement?

How to Track Bajaj Finserv Personal Loan Application Status?

How to Get Instant Paperless Personal Loans?

What Are the Various Personal Loan Benefits?

What Are the Things to Consider Before Applying For a Personal Loan?

How to Improve Your Chances of Getting Approved For a Personal Loan?

What Are the Do’s and Don’ts While Taking a Personal Loan?

When Should You Take a Personal Loan?

What is The Typical Personal Loan Amount And Repayment Tenure?

What is the Personal Loan Verification Process?

How to Deal With Credit Card Debt Using a Personal Loan?

How to Get Personal Loan Without Bank Statement?

How to Get an Instant Loan without Income Proof?

How to Get Instant Loan without Security?

How to Check TransUnion Credit Score Easily?

Why A Credit Report is Important in Personal Loan Sanction?

Can You Get A Personal Loan With A Low Credit Score Below 750?

What is Personal Overdraft Facility?

What is Bajaj Finserv Moratorium Period in Personal Loan?