- HOW IT WORKS?
- Credit Score & Report
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Personal Loans are easy to avail. Here we have some reasons for easy availability of Personal Loans
- Documents required are less
- No collateral needed
- Low annual income require
There is a record of all your financial transactions in the credit report. If an individual has defaulted on loan payments and credit card payments, their name is listed in the defaulter list of CIBIL.
If a person has failed in making the credit card and loan payments, then he is said to a defaulter. A defaulter’s name is listed in the defaulter’s list. It is not good to be a defaulter. If you are a defaulter, then there are sure shot chances of your loan getting rejected. It is not good to be a CIBIL defaulter. If you are a CIBIL defaulter then banks tend to reject your credit card and loan applications.
How is a Personal loan given to CIBIL defaulters
It is usually a difficult task for the defaulters to get credit cards and loans. Most of the banks are not reluctant to give loans to CIBIL defaulters. But there are some banks that give loans to CIBIL defaulters. Amongst other loans, getting personal loans by CIBIL defaulters is next to impossible. This is so there is a higher amount of risk in personal loans.
Process of Getting a Personal Loan by CIBIL Defaulters
It is not a good sign to be a CIBIL Defaulter. This is because the banks do not grant loans easily to CIBIL defaulters. The following steps that should be followed by a CIBIL Defaulter Listed below are the steps that an individual can follow in order to get a personal loan if they are a CIBIL defaulter.
1. Individual’s High Income: If you are a CIBIL Defaulter and your income is high, then there are chances that you can avail a personal loan in spite of being a CIBIL defaulter. If you are an individual with a high salary, then the lenders assume that you will be able to repay your loan. The higher income individuals are trusted by the banks more than the lower income individuals.
2. Collateral Personal Loans: If you opt for taking a personal loan against collateral, the banks will not focus on your default. Collateral Personal loans are loans against collaterals like shares, assets and fixed deposits.
3. Select Loans of High-Interest Rates: It is usually seen that CIBIL defaulters are granted personal loans at higher interest rates.
4. Using the CIBIL Score of One’s Spouse: This is another scenario wherein a CIBIL defaulter can take a personal loan. If one’s spouse has a good CIBIL Score, then they can be made the joint loan holder and avail the personal loan.
Reasons Why your Personal Loan May Not Be Approved
Usually, personal loans are approved easily, but it is difficult to get a personal loan approved if you are a CIBIL Defaulter. The reasons for rejecting the loan application could be many. Most of the reasons are listed below.
1. Irrelevant details: If you have applied for a loan and the information you have provided is irrelevant or incorrect, then your loan application will get rejected.
2. No Stable Job: If you do not have a stable job and you keep changing from one job to another, then your loan application will get rejected.
3. Low Income: If an individual has a low income and he/she has applied for a loan, then it is definite that the loan application will get rejected. This is so because lenders doubt that the individuals with low income may not be able to repay their loan on time.
Advantages of Getting a Personal Loan
- Once you have been granted a personal loan by the lender, you can rebuild your score by making the EMI Payments on time. This will be helpful to remove the status of your default from your records.
- If you have paid all your EMIs on proper time without missing even a single EMI, then you will see that CIBIL has re-evaluated your bad score to a good score.
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