How CIBIL Defaulters Can Get a Quick Loan?

CIBIL score is basic eligibility if you want to take a loan from financial companies and banks. By the use of this score, financial companies determine your profile to approve the loan. Some people face difficulties in getting a loan because they have poor CIBIL profiles. If a person is unable to pay his EMI on time, then that person goes into the CIBIL defaulter list. In this situation, Banks and NBFCs do not provide loans to defaulter persons. But do you know about any possibility of taking a loan if you are on a CIBIL defaulter list? The answer is yes, you can take a loan with some methods, with your negative profile. In this article, we will tell you about the best methods to take a loan.

Who are CIBIL Defaulters?

When an individual's CIBIL is scored below 600 then it means he is considered as a CIBIL defaulter. This represents the person is irresponsible in repayment behavior and his loans and credit card bills are pending. Lending institutions don't trust these kinds of individuals.

Why a Good CIBIL Score is Important?

To complete the eligibility for a loan, a CIBIL score is important, look below points and why it is important.

• It makes your loan approval process easy.
• Banks offer lower interest rates on loans with good CIBIL scores.
• You can get loans on higher amounts with a long tenure of the period.
• It improves your financial trustworthiness.
• You will get pre-approved offers.

Also read: How to Improve CIBIL Score Instantly?

Why You Are Under the Defaulter List?

If your profile is in the CIBIL defaulters list, below are some reasons for this.

• Not paying the loan EMIs or credit card bills on time.
• Apply for loans from multiple lenders at the same time.
• Use the amount more than 30% of your credit card limit.
• Not inform the lending institution about payment difficulty.
• If you have never taken a loan then your CIBIL will be zero, and you are not eligible.

Best Ways to Get a Personal Loan for CIBIL Defaulters

For CIBIL defaulter persons, it is very difficult to take personal loans for them but it’s not completely impossible. You can use some methods to avail it, however, it comes with higher interest rates, stricter eligibility criteria, and lower loan amounts. Below are some methods that you can follow to get an instant personal loan even you have low CIBIL:

• You should apply with another co-applicant whose CIBIL is good
• Select a high-interest rate loan. Some lenders provide this option to borrowers.
• Use your valuable property as collateral, lenders provide loans against your property.
• You can choose a Short loan period to reduce your interest and tenure.
• Find private lenders around you who can take risks for providing loans to you.
• Apply for a loan through online loan apps. Some lenders give loans to low-score borrowers.
• Earn more money with stability. By saving income you can boost your repayment ability.
• Find some errors in CIBIL reports and inform to CIBIL authority.

Eligibility Criteria for Quick Loan for CIBIL Defaulters

CIBIL defaulters can take the loan by following the below eligibility criteria.

• Age between 18 to 65 years is required.
• Minimum income should be between Rs.15000 to Rs. 25000 months.
• A stable source of income is required for both salaried- and self-employed.
• A minimum of 600 CIBIL is good for lenders.

Documents Required to Get a Loan as a CIBIL Defaulter

For taking a loan as a CIBIL defaulter you may need to provide the following documents.

• Identity: Aadhaar number, PAN number, voter card, passport, or driving license.
• Address: Aadhaar details, passport, driving license, rent agreement, electricity, or water bill.
• Income: Salary slip, bank statement, ITR, financial audited statements.
• Co-applicant details: KYC and financial documents.

How to Improve Your Profile from the CIBIL Defaulter List

When your profile is under the defaulter list, it is important to improve your CIBIL score. Below are the ideas you can follow to improve your Credit Score.

• Pay your dues on time: Pay all your loans and credit card bills before the due dates.
• Avoid defaulting or settling your loans: You should avoid late payments, it prevents from you your defaulter list.
• Avoid applying for multiple loans or credit cards: You should avoid using various loans or credit cards quickly. This will show your credit-hungry behavior and lower your credit score. Don’t try to apply for loans from many lenders at one time because it pushes you into trouble.
• Maintain a low credit utilization ratio: You should maintain a low credit utilization ratio, and keep it below 30%.

What Problems Do You Face as a CIBIL Defaulter?

A CIBIL defaulter can face many kinds of trouble, below are some points.

• Hard to get loans: Banks and lenders may say no and give bad deals.
• More interest and fees: You pay more for your loans and lose money.
• Less money and time: You get smaller and shorter loans and fewer choices.
• Bad name and trust: You destroy your image and chances for future loans.

Conclusion

For CIBIL defaulters, obtaining a fast loan is not simple, but it is also not impossible. In the above information, we provide the details about, how can CIBIL defaulters take the loan. By using the above method, it may be costly and uncomfortable for you. But in emergencies, you don’t have any other option to take a loan. You should always keep an eye on your CIBIL score and make your repayment on time.

FAQ

Q 1. Can a loan defaulter go to jail in India?

Ans - Loan defaulters will not go to jail directly after the CIBIL Default but lending institutions can file a case in court under the financial law.

Q 2. Can I get a personal loan if my CIBIL score is 500?

Ans - On the CIBIL of 500, taking a loan is very difficult. But if you search options, you will get some lenders which provide loans on Low CIBIL. These loans come with high interest and additional charges.

Q 3. Who will give loans to defaulters?

Ans - Online lending platforms and NBFC can take the risk to provide loans to CIBIL defaulters. They use collateral and monitoring techniques to track borrower to secure their lending amount.

Q 4. Can a defaulter of CIBIL get a loan after 7 years?

Ans - Yes, as your credit history older than 7 years is not considered in your CIBIL score.

Also read: Need Personal Loan with Bad CIBIL Score