The first question that pops into one’s mind when applying for a loan is, “Do banks sanction personal loans with poor credit?”. In an ideal world, everyone will pay back their bills and EMIs on time and have an impeccable credit history. However, the truth is far from that. We don’t live in an ideal world and sometimes emergencies beyond our control crop up, making us default on our payments.
When this happens, one’s CIBIL score gets a hit, and it makes one desperate for guaranteed bad credit personal loans. Breathe easy; while it’s common for banks to reject loan applications that have poor credit, there are ways when you can get personal loans for bad credit too.
Read on to know the clever hacks that will help you achieve this. Getting a personal or home loan for bad credit isn’t rocket science. All it takes is a hard look at your personal finances and working out ways to help you get the loan you need.
In this article, you can find the top five tips that you can use to avail guaranteed personal loans even with a poor CIBIL score.
Imagine the scenario where you were unemployed a few years back which led to missing on a few credit card and other utility bills. However, now the tides have turned and you are employed in a reputed firm with a decent or high salary. In this case, your loan approval will get sanctioned irrespective of your CIBIL scores.
Check the CIBIL scores of family members
Let’s imagine the scenario where your CIBIL score is very low. On the other hand, your spouse or parent has a better score. Then you can get your loan approved by including your partner/father/mother in the loan application as a joint holder. This significantly improves your chances of getting the loan sanctioned.
Look for NBFCs that provide loans to people with poor credit
Several Non-banking financial corporations offer easy personal loans for bad credit. They give loans without checking your credit history. The catch here is that you may end up paying higher interest rates than the norm.
Seek Financial Assistance from your Friends and Family
You can try to take a loan from your immediate circle of friends, colleagues or family members. They provide you with the amount you require based on your relationship with them. However, when you avail such loans, you must be sure to repay it on time, or you could end up souring the relationship.
Avail Collateral Loans
Collateral loans include loans on gold, property, FDs, shares, bonds and other assets. These loans are not worried about your credit score as the collateral you submit, is sufficient to cover the risk. Even banks do not check CIBIL scores when you avail collateral loans.
Make use of the alternatives and avail personal loans for bad credit and meet your emergency cash requirements.