Securing a personal loan for a low credit score is absolutely possible, but sometimes can be challenging. Credit score serves as a pivotal factor and basis that lenders consider while evaluating your creditworthiness.
However, a low CIBIL score doesn't show the end of your financial options. It signifies a lower credit rating, often attributed to past irregularities in credit repayments, defaults, or debts. Despite this setback, several financial institutions offer personal loans for individuals with low CIBIL scores. One such platform is Buddy Loan. Buddy loan is a loan service provider that helps you to avail of personal loans from top trusted lenders.
Read further to understand lenders that specialize in assisting individuals with lower credit scores comprehend the challenges faced by borrowers in securing traditional loans.
Here is the interest rate for a personal loan considering factors like low CIBIL score.
|11.99%* p.a. (Onwards)
|0.5% - 4% of the loan amount
Here is the personal loan you can avail with a low CIBIL score :
Secured Personal Loans : These loans require collateral such as property, gold, or a fixed deposit, reducing the risk for lenders and potentially allowing individuals with low credit scores to qualify.
Guarantor-based Loans : Individuals with low credit scores might secure loans by involving a guarantor with an excellent credit history, assuring the lender of repayment if the borrower defaults.
Peer-to-Peer (P2P) Loans :P2P lending platforms connect borrowers directly with individual lenders, sometimes offering personal loans with flexible eligibility criteria beyond just CIBIL scores.
Payday Loans : Short-term loans are usually granted without extensive credit checks, providing immediate cash, but they often come with higher interest rates and stricter repayment terms.
Credit Union Loans : Some credit unions consider other factors besides credit scores, allowing members to access personal loans with favorable terms based on their relationship with the union.
Other Finance Options : Some financial institutions and online lenders specialize in offering personal loans with adjusted criteria, considering income stability or employment history rather than just credit scores.
An EMI calculator proves beneficial for individuals with a low credit score seeking a personal loan. Despite the impact of a low credit score on interest rates, this calculator helps estimate potential repayment structures. By inputting varying interest rates and tenures, borrowers can expect monthly installment amounts, aiding in budgeting and financial planning.
The EMI calculator empowers individuals to assess workable repayment options, align their budgets, and make informed decisions about loan tenures despite facing credit score challenges.
|Loan Paid to Date (%)
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The eligibility criteria for personal loans with low CIBIL scores might vary among lenders, but here are the key factors considered:
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.
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:
Not sure of your credit score? Check it now!
Here are key pointers on choosing the right personal loan when dealing with a low credit score:
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:
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.
Apply for a Personal loan now!
A CIBIL score is a credit rating showing creditworthiness. It's crucial for lenders to assess your repayment capability for a personal loan.
Yes, but securing one might be challenging, and it could cause higher interest rates or reduced loan amounts.
Timely payments, reducing credit utilization, and rectifying errors in credit reports can gradually enhance your CIBIL score.
It's possible, but getting a consolidation loan with a low CIBIL score might come with higher interest rates or stricter terms.
Typically, a CIBIL score below 650 is low and may affect loan approvals and terms.
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