How a Defaulter can get a Personal Loan?
Follow these factors that may help you get a personal loan even if you are a CIBIL defaulter:
1. Good Salary to impress lenders for your new personal loan
If you have a good income presently, you are bound to have improved repayment capacity. This should go a long way to gather an approval on your loan application irrespective of your CIBIL score.
2. Your Spouse CIBIL and Credit Score can boost your personal loan chances significantly
If your CIBIL/Credit score is poor and your husband/wife has got a good CIBIL score, then you may ask for their assistance. You can get your loan application approved by making your spouse a joint loan holder.
3. Collateral Loans in lieu of unsecured personal loans
You can be allotted loan on collateral such as assets, shares, gold, FDs. There are many other products available as well. Banks don’t generally complete the process of generating CIBIL report for such instruments. Any good credit counselling institutions can tell you about how to manage your new credit for boosting your CIBIL credit score and become eligible for unsecured personal loans in future.
4. Loan Backed by a Guarantor
If you are now financially stable but your credit score isn’t, you may still get approved for a loan if you have a guarantor. This will remove the risk-factor associated with lending you money. You will need to make sure that your guarantor has an excellent credit score. However, note that if you default on this loan too, your guarantor will have to repay the outstanding balance. Also, their credit score will take a hit in case of default on your part. This is why many are apprehensive about being guarantors for loans.
5. Raise Income
If you had previously not paid the EMIs on time, your credit score must have gone low. But if you find a job where you get high income and discuss this with the bank, then they will grant you a personal loan.
6. Consolidate Debt
Many Fintech lenders offer debt-consolidation loans. If you have multiple credit cards or personal loans, there is a high probability that you’re headed towards a potential default. Prevent this from happening by taking out a personal loan for debt consolidation and direct your repayment towards a single source. Besides helping you ward off a default in the future, it can also help relieve a lot of stress.
7. Peer to Peer Borrowing
Peer-to-peer lending is a form of crowd-funding used to raise loans for people who need to borrow, from people who want to invest. This is quite a good practice abroad. Yet, it is being applied in India slowly. Remember that on such loans, the rate of interest is very high and the amount is smaller.
8. Salary Advance
If you are in a financial crunch, you can always request your employer for a salary advance. You will need to justify your ask with valid reasons for your employer to consider your request. Being in the CIBIL defaulter’s list is going to create barriers. Before you decide to take an additional loan, you should attempt to clear the loan you have defaulted on. You should also find a way to clear your name from the list and improve your credit history, which will then improve your CIBIL score.
9. Withdraw Provident Fund
There is a reason this fund was introduced in the first place to ensure your retirement is secure. However, if you are in a financial crunch and are in desperate need of money, you can consider withdrawing your provident fund. Now, you are only allowed to withdraw this fund partially under certain circumstances.
FundsTiger can arrange loans from almost all the banks. You can apply for an attractive offer with best possible rate of interest and terms for Personal Loan, Business Loan , Home Loan and Car Refinance Loan.