When you need money for unexpected or anticipated expenses, personal loans can be very helpful. These could include paying for a wedding, medical bills, your child’s schooling, and house maintenance, among other things. To sanction a loan, financial institutions, on the other hand, search for financial stability from borrowers.
With the advancement of technology, you may now borrow money online by simply completing a few simple steps. Instant online personal loans supply you with fast cash to meet any pressing or crucial financial goal or need. You can apply for a personal loan at any time and from any location as long as you have an Internet-connected device and a steady network connection.
What is a Personal Loan?
Personal loans are a smart way to manage your money, especially during this recession, when job losses and income reductions are typical. A personal loan is an unsecured loan that can be used to pay for medical expenses, house repairs, vacations, weddings, and other financial emergencies. Several banks and lending institutions provide a no-collateral, low-interest loan to meet your needs.
What is the general criteria for approval for an online personal loan?
The general eligibility criteria to consider before applying for an online personal loan includes, the age criteria, the income factor, CIBIL score, and work experience.
Why is CIBIL score important for online Personal loan application?
Your CIBIL score is one of the factors that lenders, banking institutions and non-banking institutions, consider before approving your personal loan online application. TransUnion CIBIL is a credit rating agency that assigns a three-digit score ranging from 300 to 900. It demonstrates your creditworthiness and ability to pay back debts. The closer your credit score is near 900, the greater your chances of getting a personal loan. In general, a CIBIL score of above 750 is necessary for a loan without collateral. For example, the Bajaj Finserv Personal Loan demands a 750 credit score for speedy approval on salaried professional applicants.
What to do in case of a low CIBIL score?
Financial organisations will not grant a loan to someone who is unable to repay it. A low CIBIL score categorises you as a high-risk borrower. Your CIBIL score is drastically lowered if you have a lot of debt or haven’t paid off prior loans or credit card payments. Even if you request for credit too frequently or have a high credit utilisation ratio, your credit score will suffer. Your credit score will also suffer due to a lack of expertise with a combination of secured and unsecured loans. For all of these reasons, a poor credit score might lead to your loan application being rejected or to you paying a higher interest rate, which is not cost-effective.
Here are a few ways you can get your personal loan approved in case of low CIBIL score,
- You can consider a co-signer/ guarantor as an additional security option while applying for a loan. In the event that a lender requires additional security while granting a loan application, they will ask for a guarantor. A guarantor signs the agreement and assures the lender that if you fail to repay or default on the loan, he or she will reimburse the funds. So, if you want to boost your chances of getting authorised for a low CIBIL persona, you can seek a loan with a guarantor who supports you and has strong financial history.
- If you can persuade the lender of your repayment abilities despite your poor CIBIL score, you may be authorised for a personal loan for salaried employees. Provide documentation of your salary, investment returns, rental income (if applicable), and any freelance revenue. This manner, you may show numerous sources of income that you can use to repay your low CIBIL per capita loan on schedule.
The lender, bank or NBFC, you choose can make a big difference. Consider a Bajaj Finserv Personal Loan, which has a fast approval process and a 24-hour disbursement period. Bajaj Finserv offers a loan of up to Rs.25 lakh with affordable interest rates and a flexible repayment schedule. Check your pre-approved offer with a single click to see if you’re eligible for funds in less than 20 minutes. You can easily apply for the personal loan with the mobile app from the NBFC. You just have to sign in/register on the Bajaj Finserv app, and in case you have a pre-existing relation with the NBFC, you just have to go to your pre-approved offers and simply follow the steps to get your loan disbursed. For a new customer, you can simply click on the personal loan icon and apply for the loan by following the steps. The app is available on both iOS and android devices.