Personal Loans with Low Credit Score

CIBIL score or good credit history is one of the most important criteria when applying for a loan. You must make sure you have a good credit history, meaning, you have always been loyal and accurate in repaying all your EMIs/dues on time. Lenders also approve instant personal loans to those who have a good credit history.

Credit score is an important factor when it comes to availing personal loans.

It is very important to maintain a good credit score in order for you to have a better experience trying to seek a loan. Credit scores summarize your credit history like the amount of credit you have already taken, how you have been able to repay it, any defaults and how loyal you are with your financial partners.

Lenders measure your ability to repay the loan you have availed from them and they do so by checking your credit score. It is therefore extremely important to never default your EMI payments and keep a good credit history.

It is not entirely true that you cannot avail a personal loan with bad credit score. However, it is not as easy as it is with a good score. Here are a few steps you could consider if you are seeking for a personal loan and have a poor credit score.

You can check your loan eligibility through Chola app or Chola website. Chola offers best in class loans for millions of happy customers.

Personal loan with poor credit score:

Ensure that you have a source of income that can help you pay your EMIs: It is important for lenders to understand and know that you are capable of repaying the loan amount. With limited credit score, it is necessary for you to prove that repaying the monthly installments is possible with a steady income or a different source of income since the bank or the lender does not take any collateral or extra documents.

Go for a lower loan amount: Higher the loan amount, higher the risk for the lender and higher the risk for you to repay it. If the loan amount is low, it is possible for the lender to consider you capable of repaying the monthly installments.

Get a joint loan: Apply for the loan with a co-applicant or a guarantor. This increases the chances of you getting the loan approval despite having a low credit score. You can apply for the personal loan with your parents, spouse or siblings. The co-applicant must also have a good credit score while applying for the loan.

NA/NH in the credit score report: Ask your lender if they can consider your application under NA/NH in your cibil score report. NA/NH means Not Applicable or No History. However, you will have to furnish proofs showing high income and flow of money into your account and stable employment to be considered under this quota.

Correct CIBIL score errors: This might be new to some of you. Your credit score may have faults and errors that need to be rectified to see the right score. In case of any errors, try and get it rectified. This may be because the latest repayments may not have been updated and wrong information on outstanding loans are logged in.

If you have not had previous credit history, you can reach out to Chola, we do offer Personal loans for customers like you.  Some of the key features of Chola Personal loans are mentioned below.

  • Easy online application
  • Quick turnaround time
  • Collateral free loans
  • Pan India coverage
  • Affordable interest rates
  • Loans from 1 lakh to 20 lakhs

One thought on “Personal Loans with Low Credit Score

  1. Wrong information reported to credit bureaus, Cibil score has not been updated by money tap, very cheap quality service…

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