What is CIBIL Defaulters?
People who availed of loans and are not in a condition to repay are called CIBIL defaulters. In actuality, CIBIL does not keep any list or data for defaulters. It's just your Credit score on which a bank or lender can trust to approve your loan. While reading more from this page, you'll have proper knowledge of the personal loan for CIBIL defaulters.
Your financial information is stored in a credit report so that potential lenders can determine whether you're a responsible borrower or an unreliable one. If you make the mistake of disturbing your timely repayment, you'll see a drop in your credit score. If you stop making repayments on your loan, you'll be listed on the CIBIL defaulter list; meaning a low credit score holder.
It could create issues that you will have to deal with in the future. Financial institutions and banks may be cautious when approving credit or loan requests. In some instances, you might not have access to financial services for years to the end.
How is Personal Loan for CIBIL defaulters possible?
Before moving forward to the personal loan for defaulters, let's know a little bit about the CIBIL score.
What is CIBIL score or Credit History?
CIBIL score is a three-digit statistical summary of your credit. Its count is from 300 to 900.
What is a CIBIL report?
The CIBIL report is called CIR and it stands for Credit Information Report which the CIBIL has evaluated using a credit history obtained in the past. In short, CIR is a history of the types of loans and individual credit payments done periodically to the credit institutions.
Generally, CIBIL can be categorized into 3 section:
1. Poor - 300 to 500 | 2. Medium - 500 to 700 | 3. Good - 700 to 900
Eligibility Criteria of Personal Loan for defaulters
If you have a "Low Credit Score" and you're looking out for a Personal Loan, then it would be challenging for you to acquire a personal loan until you meet the following criteria:
- The loan applicant must be over 21 years of age.
- The applicant must earn INR 15000 or more.
- Earning must be credited directly to the applicants bank account.
- The credit score must be a minimum CIBIL score of 550 or a minimum Experian score of 630+.
Required Documents:
1. Identity Proof: Aadhaar card / Driving License / Voter Id card / Passport / PAN card
2. Address Proof: Aadhaar card / Driving License / Voter Id card / Passport / Utility Bill (not more than 2 months old) / Ration Card
3. Income Proof: Salary Slip / Form 16 / Bank Account Statement / Copy of Pension/Payment Order / P&L Statement and Balance Sheet / Previous Year ITR Employment
4. Business Proof: Letter of Appointment / Job Contract / Labour Identity Card / Official Or the HR's Email Id / Certificate of Practice / GST registration and Filing Documents / Partnership-Deed / Shop act License / MOA & AOA
How To Improve CIBIL to get Personal Loan for defaulters:
Getting a personal loan is hard when you have a low CIBIL score or are on a CIBIL defaulters list. If you need a personal loan, you can do several things to increase your CIBIL Score.
- Avoid delay in EMI payment and repay the loan amount on time. When you miss an EMI payment, you need to pay the penalty, affecting your CIBIL Score.
- Don't use a credit card if you don't need one.
- Always choose a comfortable period to repay your Loan. This way, you will be able to pay EMIs on time. When you do not delay EMI payments, your CIBIL score will gradually increase.
Keeping in mind the few things mentioned above will improve your Score eventually.
Here are some tips for Personal loans for CIBIL defaulters:
- NBFCs are a good way to take personal loans with a low score. If your score is low but facing a financial crisis, applying to NBFCs is a good idea.
- Secondly, if you give true proof of your income, the lending company will also look through your income to figure out how efficiently you'll be able to repay the loan.
- Try to apply for a low amount of Loan, which you can easily repay to acquire a large loan in the future.
- Applying through a guarantor is one of the options for a loan with a low CIBIL score.
- Joint loans are also a good option for those with low scores.
- A secured loan is an excellent option; if your score is low and you need a loan, the best option is to keep collateral and get a loan in which the borrower can keep gold, land fixed deposit collateral.
How Nowofloan helps in getting a personal loan for defaulters:
- Get pre-approved loan offer from multiple banks on a single platform.
- Free loan Consultancy and Customer Services for 3 Months.
- No effect on CIBIL even after having multiple bank verification.
- You can apply for a loan anytime from anywhere.
- 60% referral payout bonus on suggesting Nowofloan.
- On-call assistance for all your doubts.