How to Get a Loan if you are on CIBIL’s Defaulter List?

If you are a defaulter and the loan amount is also outstanding, then it is very difficult to get a loan. Many financial institutions reject your application due to low or poor credit score. Being rejected is very stressful and it is important to remove stress. There are also many lenders who also give loans to customers with poor credit scores. We are going to tell you some financial tips that will help you take the right decision.

How to get personal loan if you have low or poor CIBIL score?

CIBIL is an important factor for personal loans, car loans, business loans and home loans, which all lenders consider. Through this, the lenders decide your eligibility for a personal loan. Applicants with poor credit scores are considered irresponsible or at-risk customers. When you default the loan, CIBIL is registered in the list of defaulters.

In such a situation, you are unable to take loans from mainstream lenders for many years because banks will consider you as a risky customer. To get a personal loan, your credit score must be good, but you cannot improve your credit score until you get a personal loan. So how can one get a personal loan in case of loan defaulters?

Secured loan

You can apply for a secured personal loan ie secured personal loan or a loan in lieu of a guarantee. When you apply for a loan, you can pledge assets like gold, land and fixed deposits. Due to the low risk, lenders are ready to lend. If you default in the loan, it will forfeit your property (guarantee).

Apply with guarantor

If you are not getting a loan due to poor credit score, then you can apply with a guarantor / co-applicant who has a good credit score. In this case, the credit score of the guarantor will be considered. But if you defaulted on this loan then the outstanding balance will be recovered from the guarantor.

Try your current bank

The customer should talk to the bank where you have a savings account. You can talk to them about rejection of loan application and loan default without any hesitation. If you have a friendly relationship with your bank, then the bank can give you an affordable deal.

Corporate relations with lenders

Typically, companies have tie-ups with banks, which provide loans and financial facilities to their employees. If your company has a tie-up with a bank, then you can apply for a personal loan from there.

Close the loan that was defaulted

If you have defaulted on an old loan or credit card, then it appears in your credit card. Credit score shows your credibility. It is important to remember that after closing the loan, the status of the loan should be closed in your credit report, not set because the settlement will negatively affect your credit report. When you settle the loan, it shows that you did not pay the real amount to the lender and it was in loss. So, you should close the old loan first and also take a closure certificate from the lender.

Although getting a loan is not easy due to being in the CIBIL defaulters list, but you can also open this path with caution.

Reason for having low CIBIL score:

1. Bad Payment History
2. Greater use of credit
3. Multiple Credit Inquiry
4. Incorrect report on CIBIL
5. Bad Credit

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