Low CIBIL Score Instant Loan: Life is so unpredictable that anytime you may face a financial need, and to fulfil it, you need to cough up a decent amount of money. But not all people are lucky enough to break the bank and payout. If you are one of those who want to fix your current financial needs and are looking for an instant loan, a bad credit score won’t allow it. Don’t be sad! We have got you covered! Some lenders and NBFCs regulated by RBI provide low CIBIL Score loans. Although they accept applications with a bad credit history, they still ask for some basic requirements to qualify.
Whether you are salaried or self-employed, they are ready to accept your application. This instant loan approval process is usually quicker than the traditional ones. That’s why they are unsecured and don’t need any collateral.
Low CIBIL Score Instant Loan Features
| Feature | Details |
|---|---|
| Loan Type | Unsecured Personal Loan |
| Loan Amount Range | ₹20,000 to ₹2,00,000 |
| Interest Rate Range | 18% to 36% |
| Repayment Tenure | Upto 36 months |
| Processing Fees | 2-4% |
| Guarantor Requirement | Depends on the lender |
Eligibility Criteria for a personal loan with bad credit score
Many factors are primarily considered when offering loans. However, sometimes, it may vary from lender to lender and may get additional criteria if issued to a person with a bad credit history. So here, we enlisted some common criteria usually preferred by the lenders.
- Borrowers must be at least 21 years old and not exceed 58 years old on the completion of loan tenure.
- Generally, applicants with a credit score of more than 675 are preferred but considered if someone is below it.
- They welcome All! Whether you are salaried or self-employed.
What should be the ideal credit score to get a loan?
Lenders issue personal or instant loans irrespective of borrowers’ credit scores, but borrowers need to know the ideal score they need to ensure their application is approved. If you are at par with the score given or on the line, your application may be approved.
| Credit score | Good or Bad? | Approval chances |
|---|---|---|
| 300 – 549 | Very Bad | Impossible |
| 550 – 649 | Very Bad | Extremely low |
| 650 – 699 | Satisfactory | Possible |
| 700 – 749 | Good | High |
| Over 750 | Very Good | Extremely High |
Low Credit Score Interest Rate
If someone takes care of your finances in the nick of time, it comes with a hefty interest and other processing charges. There are renowned lenders like Airtel, Hero FinCorp, and others issuing loans with low credit scores. Unlike others, their interest rates are so competitive and flexible. Due to their streamlined application procedure, borrowers can’t deny it.
| Interest rate | Vary for each lender from 11% to 36% |
| Processing fee | 2% – 5% |
| GST Charges | As applicable |
| Foreclosure charges | 2%- 3% |
How to get a Low CIBIL Score Instant Loan Personal?
There are various ways for borrowers to get a loan. They must go through the process carefully, keeping a few things in mind.
Contact Your Bank
First, the applicants must try to get a loan from the bank where they hold an account. If your relationship has been over the years, the bank may approve a loan application based on your creditworthiness. You can also avail the pre-approved loan issued by the bank to their esteemed customers only. For such loans, banks send messages, or you can seek their information from your home branch. Somehow, the bank cannot issue a loan; in that case, you can resort to your bank branch manager if he/she understands the situation.
NBFCs
Upon rejecting a loan application from a nationalised or private bank, you can seek help from NBFCs. These Non-Banking financial companies issue loans under even extreme circumstances. They approve your loan even if your credit score is not up to standard. However, such loans come with high-interest rates, lesser loan amounts, and tenure. These entities are registered with RBI and follow their footprint. So before seeking a loan from NBFCs, check their authentication.
Secured Loan
You can try a secured loan after failing miserably in the first two procedures. Now, what secured loan is? Let me tell you. Generally, banks and other lenders issue personal loans without taking any security (which means they are not asking for any assets or guarantors). But in this secured loan, the borrowers need to pawn their valuable assets like cars, property papers and others. If you fail to pay the loan EMI, the bank will recover the loan amount by auctioning the assets. While applying for this, you must submit your asset’s papers until the EMI Payoff. Do think twice before considering this loan.
Loan with Co-applicant
You can introduce a co-applicant (known person) to the lender whose credit history is worthwhile enough that you may get the loan easily. Such co-applicants help to consolidate your loan application with their credit score. Beware, if you lapse any of the EMI, it may hamper yours and their credit score.
Application Procedure for Low Cibil Score Instant Loan
Nowadays, submitting a loan application is so easy. You need to go through the process given hereunder.
- Visit the Lender portal first.
- Fill out the application form available under the personal loan section.
- Upload documents like the PAN card, Aadhaar Card, and others.
- Submit the application form.
- The lender may verify the application form and documents.
- If the details are correct, they disburse the loan amount.
Documents required for Low Cibil Score Instant Loan
| Identity Proof | PAN Card, Aadhaar Card, Voter ID, Driving License, or Passport. |
| Address Proof | Utility bills, Aadhaar Card, Voter ID, Passport, or Rental Agreement. |
| Employment Proof | Employee ID Details and company details for salaried Employees Company registration and documents in support of it for self-employed |
| Income Proof | Salary Slip and Bank Statement (last three or six months for salaried employee) ITR (Last three years), Bank statement (current and primary), Profit & Loss statement for Self Employed |
| Photographs | Latest photograph of the applicants and co-applicants (If any) |
FAQs
How do I get a loan with a low credit score?
Approach NBFCs and other lenders giving loans without considering credit scores, or you can submit a loan application with co-applicants and check the pre-approved loans issued by the banks.
What should be the ideal cibil score to get a personal loan?
The ideal credit score considered by all banks and NBFCs is above 650.
Can I get a personal loan with a credit score of 500 or below?
Finding a lender who can provide a loan with these scores is challenging. But a loan with such scores possibly comes with higher interest rates.
What paperwork does a bank require for an Instant personal loan with low credit?
Basic documents like PAN Card, Aadhaar Card, Salary Slip, ITR, KYC Documents, and latest photograph.