When looking for an insta loan, the applicant’s CIBIL score is one of the most important things creditors look at. Since these are collateral-free loans that do not require any guarantor, collateral, or security, lenders depend on the individual’s credit score to check their creditworthiness. This 3-digit number is a testament to a person’s repayment capacity. The higher the CIBIL score, the higher the loan eligibility at lower interest rates. However, what if a loan seeker has low CIBIL? Is it still possible to obtain a loan? Below, we will answer these questions.
Ways to Get a Personal Loan with low CIBIL Score
Even though most lending institutions check the credit score before evaluating a loan application, here are a few ways to get an insta loan low CIBIL:
- Include a Co-Applicant
Applying for a loan with a co-applicant having a decent credit score is a nice way to improve loan eligibility and get it easily, even if you have low CIBIL. Family members like siblings, spouses, or parents can act as co-applicants for Personal Loans. However, ensuring they have a good credit score to act as a co-applicant is important.
- Seek a Small Loan Amount
Loan providers view higher risk with big loan amounts, especially for customers with low credit scores. Therefore, while applying for an instant loan with low CIBIL, one must evaluate the expenses, use an eligibility calculator, and apply for a smaller loan than they qualify for.
- Provide Sufficient Income Proof
Lenders want to ensure that their customers earn enough to repay their EMIs consistently and timely. Therefore, providing sufficient income proof with a loan application improves the chances of getting approval even on low CIBIL. Some trustworthy documents to prove income include Form 16, the last six months’ salary slips, and account statements for the salary account.
- Offer Collateral for a Loan
Collateral-free loans are riskier for loan companies, which is why they demand a higher credit score to ensure creditworthiness. Those with a low credit score must consider offering collateral for a loan to give a sense of security to the loan providers. Getting a guarantor or providing security improves chances of obtaining the desired loan.
- Apply Through the Ideal loan App
Ideal loan apps like Hero FinCorp app is considered the trusted and best personal loan app for borrowers to get a personal loan with low CIBIL. Aspiring borrowers can use the app to obtain Personal Loans of up to 1.5 Lakh with a repayment period of 6 to 24 months. The lending institution does not demand any credit history from salaried employees with stable jobs and regular incomes.
Applying for an insta loan with low CIBIL has several advantages. Most importantly, since these loans do not involve any credit checks, their verification and approval procedures are faster and require minimal documentation. Moreover, the applicant’s credit rating remains unaffected as the loan provider does not pull any hard enquiry on their credit report. However, loan seekers must provide sufficient income proof and maintain a low DTI ratio to qualify for a loan with low CIBIL.