Instant personal loans are unsecured credit options that do not require collateral, making them a higher risk for lenders than secured loans. Due to this, financial institutions assess several factors before approval. One crucial factor is the borrower's credit score, as it reflects repayment history. While a high score improves approval chances, individuals seeking a personal loan for low CIBIL score can still explore options. Some NBFCs and banks offer an instant loan with low CIBIL score, though interest rates may be higher to offset the risk.
Securing a low CIBIL score personal loan may seem challenging, but it is possible with the right strategy. Consider lenders specialising in loans for low credit scores, such as NBFCs and digital lenders. Strengthen your application by adding a co-applicant or guarantor to enhance approval chances. Highlight additional income sources to assure lenders of your repayment capability. You can also opt for collateral-based loans, such as gold or secured personal loans. Research lenders offering an instant personal loan for low CIBIL score and maintain timely repayments to improve future creditworthiness.
What is the impact of the CIBIL score on a personal loan?
Your CIBIL score plays a crucial role in securing an instant personal loan with low CIBIL. A low CIBIL score may limit your eligibility for favourable loan terms, but you can still avail an instant loan for low CIBIL under certain conditions. Some financial institutions may offer loans at higher interest rates or with shorter repayment terms to those with a low CIBIL score. It’s important to check your eligibility and explore options that suit your financial profile before applying for a loan.
Why is CIBIL Score important?
A CIBIL score is crucial for assessing your creditworthiness when applying for loans or credit cards. Here’s why:
- Lenders use it to evaluate the risk of lending.
- Higher scores ensure better loan terms, including lower interest rates.
- Low scores make accessing credit difficult or costlier.
- For an instant loan low CIBIL, lenders may impose stricter terms, making maintaining a good score essential for hassle-free borrowing.
How do you get a personal loan when you have a low CIBIL score?
Instant loans for low CIBIL scores focus on factors like income and employment stability. Key points include:
- Higher interest rates due to increased risk
- Collateral or guarantor may be required
- Lower loan amounts and shorter repayment periods
Repaying these loans on time can improve your credit score.
How does instant personal loan for low CIBIL score work?
Instant personal loans for low CIBIL scores work by assessing other factors beyond just the credit score. Lenders consider the applicant's income, employment stability, and repayment capacity. These loans often have higher interest rates and stricter terms. Applicants may need to provide collateral or have a guarantor. The loan amount is typically lower, and the repayment period shorter. Repaying such loans on time can help improve the credit score over time.
Minimum CIBIL score required for personal loan
The minimum CIBIL score required for a personal loan typically ranges between 685. However, for an instant loan for low CIBIL or an instant loan with low CIBIL score, you may still be eligible with slightly higher interest rates or stricter terms.
Personal loan options for low CIBIL Score
Getting a loan for low CIBIL score can be challenging, but some options can help you secure funds quickly. Alternative lenders, collateral-backed loans, and guarantor support can improve approval chances. Here are some ways to obtain a personal loan despite a low CIBIL score.
NBFCs and fintech lenders
Non-Banking Financial Companies (NBFCs) and fintech often have lenient credit score requirements compared to traditional banks. They assess other factors like income and repayment capacity, making it easier for individuals with low CIBIL scores to get approved for a personal loan.
Collateral-based loans
Offering assets such as gold, property, or fixed deposits as collateral can improve your chances of securing a personal loan. Since lenders have security against default, they are more likely to approve the loan despite a low CIBIL score.
Co-applicant or guarantor loans
Applying with a co-applicant or guarantor with a strong credit score can significantly increase approval chances. Their good credit history assures lenders of repayment reliability, making it easier for borrowers with low CIBIL scores to access funds.
What factors lower the CIBIL Score
A CIBIL score is a crucial indicator of an individual's creditworthiness. Here are some of the factors that can lower an individual’s CIBIL Score.
- Late or missed payments: Failing to make timely payments on loans or credit cards significantly lowers the score. Even a single missed payment can have a negative impact.
- High credit utilization ratio: Using a large portion of your credit limit (above 30%) signals a higher dependency on credit and reduces the score.
- Loan defaults or settlements: Defaulting on loan repayments or settling loans for a lower amount than originally borrowed reflects poor financial management.
- Frequent credit applications: Applying for multiple loans or credit cards within a short period makes lenders view you as a high-risk borrower.
- Closing Old Credit Accounts: Older credit accounts contribute to a longer credit history, which helps maintain a good score. Closing them can shorten your credit history and lower your score.
- Errors in credit report: Inaccuracies in your credit report, such as incorrect loan details or fraudulent transactions, can reduce your score if not corrected.
- Co-signing or guaranteeing loans: If you co-sign a loan for someone and they default, it affects your credit score as well.
- Overdue credit card balances: Carrying forward high outstanding balances on credit cards can reduce your score, even if you pay the minimum due.
- Frequent loan rejections: If lenders frequently reject your credit applications, it signals financial instability and lowers your score further.
Why choose an instant personal loan for low CIBIL Score
Opting for an instant personal loan for low CIBIL offers:
- Quick approval: Funds are disbursed promptly, ideal for emergencies.
- Flexible lenders: NBFCs and fintechs cater to low credit profiles.
- Customised terms: Collateral or guarantor-based options ensure accessibility.
This makes it a practical choice for urgent financial needs.
Eligibility criteria for low CIBIL score instant loan
Anyone can opt for our Insta Loans online. Your Insta Personal Loan eligibility and documentation requirement depends on whether you are a new customer or have an existing relationship with us.
If you are an existing customer
Since you are an existing customer with a pre-approved offer, there are no additional eligibility criteria that apply to you.
Some of our existing customers may be asked to submit additional documents, such as your income proof, KYC documents, and bank statement to apply for instant personal loan.
If you are a new customer
Customers with an Insta Personal Loan offer may need to go through a CIBIL check and provide additional documents. The documentation and application process may differ slightly.
Documents required for instant loan with low CIBIL Score
The documents required vary based on the lender’s terms. To get an instant personal loan for low CIBIL, it is a good idea to prepare these documents:
- KYC documents: Aadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register/ NREGA job card
- PAN card
- Employee ID card
- Salary slips of the last 3 months
- Bank account statements of the previous 3 months
- Piped gas bill
- Pension order
- Letter of Allotment of Accommodation Issued by Employer
- Property / Municipal tax receipt
- Utility bill
A CIBIL Score of 685 is needed to qualify for a regular personal loan. However, you do not need to know your credit score to apply for our Insta Personal Loan because we run a credit check before making you an offer. Existing customers may already have pre-approved loan offers in place. As for new customers, we generate a pre-assigned limit by considering many factors, like your credit score, payback history, and so on.
Interest rates and charges for low CIBIL instant loan
Getting a low CIBIL instant loan comes with specific interest rates and fees based on the terms and condition. It’s important to check the Insta Personal Loan interest rates before applying.
How to apply for a low CIBIL score personal loan
You can get our instant personal loan online by following the simple steps below.
Step-by-step guide to getting an Insta Personal Loan
Step 1: Click on ‘CHECK OFFER’ at the top of this page to open our online form.
Step 2: Enter your 10-digit mobile number and verify your profile with the OTP sent to your phone.
Step 3: You will see an offer with a pre-assigned loan limit for you. You can either go with it or choose a lower amount.
Step 4: Select a repayment tenure that suits you best.
Step 5: Click on ‘PROCEED’ to complete the online process.
The online process may differ depending on whether you are a new customer or have an existing relationship with us.
Note: Some customers may need to submit additional documents to complete their Insta Personal Loan application process.
How do you improve your credit score?
Improving your credit score can make it easier to qualify for an instant loan for low CIBIL. Here are a few tips:
- Pay bills on time to avoid late fees
- Reduce outstanding debts to improve credit utilisation
- Avoid multiple loan applications to maintain credit health
These steps can help you access better loan terms, even with a low CIBIL score.
Here is how an Insta Personal Loan works
Both existing and new customers can apply for an Insta Personal Loan, making it a flexible option for urgent financial needs. Eligibility depends on your profile, and additional documents may be required.
In the case of existing customers
We have pre-approved Insta Personal Loan offers for our existing customers, which they can check online with just a phone number and OTP.
For instance, Priya already has an Insta EMI Card and wants to know if she has a pre-approved instant loan offer from Bajaj Finance. She can visit the Insta Personal Loan page and enter her mobile number and OTP by clicking on ‘CHECK OFFER.’ She will then get to view her pre-approved offer on the screen. Priya now has the choice of applying for the loan immediately or later. She can also choose a lower amount than the offer and go ahead with her application.
In the case of new customers
New customers who want an Insta Personal Loan offer might need to send additional paperwork and go through a CIBIL check.
For instance, Avani wants an Insta Personal Loan even though she is not an existing customer of Bajaj Finance. She can click on "CHECK OFFER" and enter her mobile number and OTP. She will be able to view the pre-assigned loan limit on the screen. Avani now has the option to proceed with the application procedure, which requires less than five minutes. She may need to submit KYC documents or bank statements, depending on her profile.
If no offer is displayed
If you do not see an offer or need a loan amount greater than the pre-assigned limit, you can choose to apply for our regular personal loan. This takes less than 5 minutes.
In conclusion, you do not have to check your CIBIL Score to apply for our Insta Personal Loan. However, you can still take steps to increase your credit score, since it can help you in getting better deals on loans. With a high CIBIL Score, you may get offers for higher loan amounts at lower interest rates.
Conclusion
Securing an instant loan on low CIBIL Score may be achievable through flexible lenders and collateral-backed options. By improving credit habits, you can access better financial products in the future, ensuring stability and growth.
