CIBIL Score Loan- Getting a loan is not as easy as it seems. Banks check your CIBIL score before giving a loan and if that score is below 750, it is common for the loan to be rejected. But this does not mean that you have no option left. There are many Jugaads in India that can help you arrange money despite a poor credit score .
These are those 5 ways
1. Gold Loan
Gold loan is a secured loan in which the loan is given by pledging the gold you have. There is no obligation of CIBIL score in this. You can get a loan up to 75% of the current value of gold. Documentation is easy and approval is received quickly.
2. Joint loan or loan with a guarantor
If your CIBIL score is poor, you can join hands with someone who has a good score. In a joint loan, the credit profile of both is considered, which increases the chances of loan approval. If the co-applicant is a woman, then a discount in interest rates can also be available.
3. Loan against deposits
If you have invested in schemes like FD , PPF or LIC, then you can take a loan against them. This is a safe option and does not require a CIBIL score. Loan on FD is available immediately and the interest rate is also low. To take a loan against PPF, the account should be at least one year old.
4. Advance Salary Loan
If you are employed, many companies offer advance loan based on salary . This loan can be up to 2–3 times your salary. It can be repaid in EMIs and the role of CIBIL score is limited. This option is very useful for short term needs.
5. Loan from NBFC
Non-banking financial companies (NBFCs) provide loans even with a poor CIBIL score. Their interest rates are slightly higher, but the documentation is easier. NBFCs show more flexibility in loan approval, especially in cases of personal or business loans.
Having a bad CIBIL score is definitely a challenge, but it does not mean that you are left with no option. With the help of the options mentioned above, you can raise funds for your needs. However, for the future it is important that you work towards improving your CIBIL score like paying EMIs on time, using credit cards properly, and avoiding unnecessary loans.