Personal loan for defaulters

A personal loan is a widely available loan in the market. Also, it is gaining popularity among the customers. You can check the Karur Vysya Bank personal loan. It claims to offer the best personal loan scheme. 

There are various reason due to which personal loan is becoming the first choice in a financial crunch among the common man.

The first reason is its non-requirement of collateral. If a person does not have any big-ticket item to the mortgage then also he is eligible to apply for the loan. Unlike a gold loan, you need not mortgage any of your gold jewelry to get a loan. 

The loan amount does not have any usage restrictions. You can use it anywhere. You can easily avail of a personal loan if you have a great cibil score. 

What is the cibil score?

A cibil score is an important factor for personal loan eligibility. A cibil score is a three-digit number that reflects all the history of the customer's credit profile. It ranges between 300-900. The minimum cibil score is 300 and the maximum is 900. All the scores closer to 900 are excellent.

Usually, scores of 750 and above are considered to be good. Higher the cibil score you have there is a higher chance of getting your loan approval. But if the score is not healthy and you are seeking a personal loan. There is a high chance that loan request may get rejected.  

Here I will share with you some tips on how you can avail of a personal loan with a bad credit score.

• Apply with Co-applicant: You can take the help of your spouse or your parent to apply for a loan with you as a co-applicant. It will increase your eligibility, thus may get a loan. 

• Share the sufficient income proof: If your credit score is not healthy. Then, you need to show to the lender that you have a good stable income that is adequate to pay the monthly installment of the loan. 

• Pay a higher rate of interest: If your credit score is high, then the lender considers you a "creditworthy" borrower and offers you a lower interest rate. But if the credit score is not good they may offer you a loan but with a higher rate of interest.

• Try to improve the cibil score: The cibil score plays a very significant role in your laon application approval and rejection. Hence you should keep taking initiatives to improve that. For improving the cibil score, you should pay the existing EMI on time. Also, do not apply to various lenders simultaneously. 

If you would take care of the above factors, certainly you can avail the best personal loan for you even if you are a defaulter.

Must read:- Details of Personal Loan