Your CIBIL score is between 300 and 900, depending on your credit and repayment history. Ideally, it must be 750 or above for a personal loan. Since there’s no collateral, the lender requires a high score to be sure of your repayment ability.
Read More: Personal Loan for Cibil Score of 550-600
While there is no such thing as a ‘CIBIL defaulter,’ you may have a low CIBIL score. In such a case, you are unlikely to get personal loan approval unless you compensate for it in other ways.
Here are the things you can do to boost your chances of personal loan approval even with a low CIBIL score:
Co-apply: Apply with a co-applicant who has a high CIBIL score. This will boost your eligibility and give you access to funds while curtailing the lender’s risk.
Show sufficient income: Apart from meeting other eligibility criteria, show that you have ample income that’s sufficient for repayment. Also, highlight that you receive income regularly.
Accept a higher interest rate: A lender may offer a personal loan to you only at higher rates of interest to cover the increased risk. You can opt for such a loan should your budget allow it.
Improve your score: Build your CIBIL score to 750 and only then apply for a loan.
To make up for a low CIBIL score, follow one or more of these tips before applying for a personal loan.