Loan For CIBIL Defaulters

[nikhilchauhan]

Understanding CIBIL Defaulters

Credit Information Bureau (India) Limited is a coveted credit information organization that keeps records of organizations or individual credit activities. When the individual or the organization fails to make the due payment on the financial obligation like a credit card, home loan, etc they are put on the CIBIL defaulter list. This list negatively impacts the individual or organization's ability to secure future loans and can seriously affect their financial reputation.

There could be many reasons an individual or organization can be on the defaulters list such as missed EMIs, loan repayment default, etc. CIBIL defaulters have a CIBIL score of 600 or below and may find securing a loan challenging for future use. Companies that provide personal loan to CIBIL defaulter include Moneyview, Tata Capital, Hero Fincorp, etc.

Eligibility For CIBIL Defaulter For Personal Loan

• The CIBIL defaulter must be 21 years of age or above.
• He/she must have a monthly income of 15000 or above
• The earned income must be directly deposited in their bank account.
• The CIBIL score of the applicant must be 550 or above.

Document Requirement For Personal Loan Application For CIBIL Defaulter

• Adhaar Card, PAN card, etc as identity proof
• Voter ID, ration Card, etc as address proof
• Form 16, salary slip, etc as income proof
• business license, GST registration, etc for business proof

Pointers To Secure Urgent Or Personal Loan As CIBIL Defaulter

1. Opt for Co-signor

Your chances of getting an urgent or personal loan as a CIBIL defaulter multiply if you have a co-signor. A co-signor with a good credit score is a bonus and can aid you with getting personal or urgent loans easily. Financial institutions are more likely to pass your loan application with a co-signor with a high credit score as it minimizes the chances of loan default.

1. Utilize Collateral

Financial institutions can be persuaded to pass you a personal or urgent loan when you offer collateral. The physical asset eases the institution's financial risk and guarantees return on investment ensuring that they are more open to the idea of passing the required loan by you. However, you must understand that in the event of you failing to pay back the EMIs or becoming a defaulter, the intuition will seize your property.

1. Go For Higher Rate Of Interest

CIBIL defaulters often find it difficult to secure loans at the time of need. One way to combat the issue is to opt for a higher rate of interest. The elevated interest rate mitigates the risk of investment for the lender making them more embracing of the idea of offering the loan amount for your need.

1. Peer to Peer Lending

As a CIBIL defaulter, if you are finding it difficult to secure a loan from a financial institution or online lending site, peer-to-peer lending could be a great option. This will allow you to get a personal or urgent loan without going through a lengthy and time-consuming loan application process. A relative or friend can help at the time of need and you could pay them back slowly.

1. Work On Improving CIBIL Score

If you are not on urgent requirements for a loan, trying to improve your CIBIL score can work wonders for you. You could begin by repaying your EMIs, existing loan repayment, etc timely to help enhance your CIBIL score. Once your CIBIL score improves securing an instant or personal loan can become relatively easy for future needs.

FAQs

1. Can you improve your CIBIL score within a short time?
Ans. Unfortunately, this is not the case. It takes time to improve your CIBIL score, as you are required to repay the outstanding debt to ensure that your CIBIL score is up to par.

2. Does the CIBIL score reset?
Ans. Yes, after 7 years the CIBIL history of an individual or entity is removed.

3. What are some ways to improve your CIBIL score?
Ans. Some ways to improve CIBIL score include low-credit utilization, timely EMI payment, minimizing new credit applications, etc.

4. What are tips to secure a favourable loan term as a CIBIL defaulter?
Ans. To get a favourable loan term, you must know the eligibility criteria, enquire about processing fee charges, gather the necessary documents for loan application in order and lastly try to negotiate the loan interest rate.

5. Is Joint Loan An Option For CIBIL Defaulter?
Ans. Yes, joint loans are much preferred by lenders or financial institutions for CIBIL defaulters.

6. Does being a CIBIL defaulter result in going to jail?
Ans. No, you will not go directly to jail for being a CIBIL defaulter. However, the lending institution can opt for filing a case as per financial Law against you in court.

To sum up, CIBIL defaulters can have a hard time securing urgent or personal loans for themselves. However, there are options available for them to get instant loans with come with a cost. It is therefore important that CIBIL defaulter work on improving their credit score to ensure that they can easily avail of personal or urgent loans in future.