Personal Loan for CIBIL Score of 650

Are you planning a trip, a wedding, or a spending spree? A personal loan can help finance all your day-to-day and large expenses with minimal hassle. However, having a credible CIBIL score is one of the key criteria for getting a personal loan. Is your CIBIL score of 650 bothering you? Know that getting a personal loan can be difficult, but it is not impossible.

With credible partners like My Mudra, you can easily avail of a Personal Loan for CIBIL Score of 650. Let’s dive deeper and understand some of the challenges of a low credit score and how you can overcome them.

Different CIBIL Score Ranges and What They Mean

Credit Information Bureau India Limited (CIBIL) is a trusted credit bureau in India that assigns CIBIL scores based on loan history, timely payments, and credit usage. Here’s a look at different CIBIL score ranges:

Is a Personal Loan Possible with a CIBIL Score of 650?

If you are worried whether you can get a personal loan for credit score of 650, then the answer is yes. However, before applying for a loan, it’s important to evaluate the factors affecting personal loan approval for a 650 CIBIL Score to increase approval chances.

1. Income Stability

Whether you are self-employed or a salaried individual, ensuring a stable income flow is important for easy loan approval.

2. Financial History

Your past financial decisions and savings patterns help build trust among lenders. If you have a record of smart banking decisions or a reputation, you can get your loan approved quickly.

3. Repayment History

The most important factor is how timely you have repaid your past loans. Inconsistent EMI payments for the past loans can really hamper your chances.

4. Existing Debt

If you have any existing debt, the amount and EMIs will also be taken into consideration. The lower the Debt-to-Income ratio, the better your chances.

Challenges of Having a Low Credit Score of 650

Lower credit scores come with some challenges. When applying for an online personal loan for CIBIL score of 650, you may have to face these issues:

1. Higher Interest Rates

With a slight risk involved with a lower credit score, banks and institutions may offer higher interest rates compared to what they provide to people with a higher score of around 750. You can see a jump of about 5-10 % interest rates along with some stringent and rigid terms and conditions.

2. Lower Loan Amount

Generally, some of the best banks & NBFCs offering personal loans for a 650 CIBIL score put a cap on the upper limit of the personal loan amount due to the risk involved. For instance, if you were expecting a loan of 5 lakhs, you may only get 3 lakhs.

3. Loan Terms and EMIs

An individual with a higher CIBIL score may enjoy better flexibility when it comes to terms and conditions regarding the personal loan than one with a score of 650. You may have to negotiate your way to an agreed-upon term for EMIs and tenure. If you have any doubts, you can calculate your EMIs with the My Mudra EMI calculator for a clear understanding.

Tips to Improve Chances of Getting Personal Loan with a 650 CIBIL Score

Understanding how to apply personal loan with 650 CIBIL score involves improving your creditworthiness, choosing the right lender, and maintaining a steady income. However, here are some tips to improve your chances of getting a loan approved without any hassle:

1. Apply For a Lower Amount

The lower the loan amount, the less risk there is for the lender. This will help get your personal loan approved with minimal hurdles. It will also reduce the financial burden on you that comes with higher interest rates and shorter repayment tenure.

2. Proof of a Stable Income

If you are someone with a respectable job, make sure to present your salary or income proof to showcase your credibility to the lender. In some cases, even if you have a low CIBIL score but a high and stable income generation, you can get a personal loan easily.

3. Apply With a Co-Applicant

If you can, apply for a loan with a partner who has a higher credit score than you. It will increase your overall credibility. Plus, you get a safety net in case of any unforeseen activity or situations in the future. This will also help you improve your credit score in the long run.

4. Opt For Secured Personal Loans

If you are finding it hard to get quick personal loans, you can always look for alternative loan options for low CIBIL score, such as a secured personal loan. Assets such as a house, gold and fixed deposits can help you get loans at a lower CIBIL score.

5. Improve Your CIBIL Score

The best long-term solution for personal loan approval is improving your CIBIL score to a level higher than 650. If you’re not in urgent need of money, increasing your CIBIL score will allow you to enjoy multiple loan options, better interest rates, and flexibility in terms and conditions. Here’s how you can improve your CIBIL score:

• Timely payments of your credit card bills will drastically improve your credit score. You can set automatic payments or reminders to help you be on time every month.
• Avoid applying for multiple loans within a short period. It can hurt your score.
• Keep your credit utilisation score low. Try to keep it below 30% of the total credit.
• Review your credit score regularly to check your progress.

Conclusion

A CIBIL score of 650 may not be great, but you can still avail of quick personal loans for your necessities. With some challenges such as higher interest rates, lower loan amounts and stricter terms, it can be tough, but with some smart planning and tips, you can accomplish your loan requirement successfully. At My Mudra, we will help you connect with both reputable banks and NBFCs for all your loan needs and guidance.

Not only this, but you can also enjoy low interest rates, minimal documentation, and a fast application process for a hassle-free personal loan. So, what’s the wait? Apply for a quick personal loan today with My Mudra in just a few clicks!

Also read: Apply For A Personal Loan With 15,000 Salary