Personal Loan For Low CIBIL Score

Eligibility Criteria For Personal Loans with Low CIBIL Scores

The eligibility criteria for personal loans with low CIBIL scores might vary among lenders, but ‌here are the key factors considered:

• Stable Income : ₹15,000 for repayment capacity.
• Employment Stability :Borrower has to be employed at their current organisation
• Debt-to-Income Ratio :35% or less
• Nationality : Indian

Documents For Low CIBIL Score

If you are planning to avail a personal loan with low credit score, then here are these documents help lenders assess the borrower's financial stability and repayment capability, despite a low CIBIL score.

• Identity Proof: Aadhar Card, Passport, Voter ID, or Driver's License.
• Address Proof: Utility bills, Rental Agreement, or Passport.
• Income Proof: Salary slips, bank statements, or income tax returns.
• Employment Proof: Employment certificate or appointment letter.
• Financial Statements: Bank statements, PF statements, or any other asset details.
• Guarantor Documents: If applicable, documents of the guarantor supporting the loan application.
• Collateral Documents: When you have a low credit score, you may have to provide documents related to the collateral.

Understanding Impact of Low CIBIL Scores on Personal Loans

Individuals with low CIBIL scores might face hurdles in obtaining loans swiftly or at competitive interest rates, affecting their financial flexibility and borrowing options. Here are key pointers highlighting the impact of low CIBIL scores on personal loans:

• Limited Access to Loans : A low CIBIL score restricts access to various loan options due to increased risk perceptions among lenders.
• Higher Interest Rates : Individuals with low credit scores often face higher interest rates on personal loans, making borrowing more expensive.
• Reduced Loan Amounts : Lenders might offer smaller loan amounts to applicants with low CIBIL scores to minimize their risk exposure.
• Loan Rejections : Low credit scores often result in loan rejections, as lenders are hesitant to extend credit because of perceived repayment risks.
• Impact on Financial Flexibility : Limited access to loans at favorable terms reduces financial flexibility for individuals seeking funds for various purposes.
• Challenges in Loan Approval : Lower credit scores create hurdles in obtaining loan approvals swiftly, leading to delays in accessing necessary funds.
• Credit Terms and Conditions : Individuals with low credit scores might face stringent terms and conditions, affecting the overall borrowing experience.

Choosing the Right Personal Loan with a Low Credit Score

Here are key pointers on choosing the right personal loan when dealing with a low credit score:

• Interest Rates: Compare interest rates offered by different lenders. Look for institutions offering comparatively lower rates, even for individuals with lower credit scores.
• Loan Terms: Evaluate the loan terms such as tenure and repayment options. Choose a tenure that aligns with your repayment capacity and opt for flexible repayment terms.
• Fees and Charges: Consider the associated fees and charges, including processing fees, prepayment penalties, and late payment charges. Assess the impact of these on the total cost of the loan.
• Collateral or Guarantor Requirements: Assess the feasibility of providing collateral or involving a guarantor if the loan requires these arrangements. Determine the impact on eligibility and loan terms.
• Credibility of Lender: Research the credibility and reliability of the lender. Opt for reputable financial institutions or lenders known for transparent dealings and customer-friendly policies.
• Loan Amount and Eligibility: Determine the loan amount you require and check if lenders will offer it based on your eligibility criteria, considering your low credit score.
• Impact on Credit Score: Understand how timely repayment of this loan could positively affect your credit score. Some lenders might offer options to improve credit scores through regular payments.

Steps to Apply For Personal Loan With Poor Credit History

Availing a personal loan with a low credit score can be challenging, but Buddy Loan provides avenues for those with poor credit history to apply. Here are the steps to apply for a personal loan through Buddy Loan despite a low credit score:

Step1: visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).

Step 2: open the Personal Loan Application Page. Provide the mobile number and enter the received OTP.

Step 3: specify the desired loan amount & personal email. Next, choose the Personal Loan option

Step 4: choose the employment type (Salaried, Self-Employed, or Student) and the salary mode (bank or cash).

Step 5:enter your work details (Including company name, years of service and Designation)

Step 6: enter your personal details (Including Full Name, PAN, address DOB & Gender)

Step 7: provide your communication address, and income details and Click the ‘Submit’ button.