Can I Get A Personal Loan With A Low Score?

A personal loan is an amount of money that one borrows from a bank for various purposes. One may take a private or consolidation of their debts. There are many options available while taking a personal loan. How will you choose? What will you choose? Many questions come to your mind while applying for a personal loan. One of the essential things is the interest rates. One does not want to waste his money giving high interest rates.

So it is necessary to have a suitable tenure period in order to avoid higher interest rates. One needs to do all the research about every certified bank possible before applying for a personal loan. Different banks provide different schemes for personal loans. Personal loans can be customized according to one's financial capability. You need to choose the right bank for your personal loans. These do not require any collateral. You don't have to provide any of your assets as a guarantee for the loan. The only advantage of delivering your collateral is that you will be able to get lower interest rates which can help you save a bit more money.

Personal loans require very minimal documentation: There are many Personal Loan Eligibility criteria. Age limit is one of them. People age 21-68 can apply for personal loans. The person should have a source of income. He could be in business, self-employed, a student, or any other. The person should be employed for 2-5 years. The minimum income should be at least five thousand per month. He should have work experience of 1-3 years. He should be able to give up to 65% income for EMI. There are personal loan eligibility calculators available online through which you can check your eligibility by putting the required data.

Factors affecting the loan eligibility criteria. Some of them are listed below:

Geographic location:  the area where you live determines whether you will get a loan or not, as in very small places, the facilities are not available. Income: Your income decides the eligibility of the personal loan. You need to be capable of giving up to 65% of your monthly income to the EMI.

Housing situation: If you have a house of your own, then the rental charges of your home will not be there, which will help you maintain your finances better. Existing credit: In case you have availed of another personal loan, your chances of getting a new loan will be lower than if you have no other credit to repay.

Credit history: Your credit history will have a big role in the personal loans; if you have higher credit scores, then it's easy to get a loan, you will be getting lower interests.

With poor credit scores, it's very difficult to get loans. But there is a possibility to get a personal loan. You can ask for lower personal loans, as repaying the lower amount of money will be easy for you, and repaying the money timely will help you boost your credit score.

Lenders won't trust you easily and feel that you are not worthy of having a loan as your credit score is low. The credit scores below low if you don't pay your loan amounts timely. For applying for a loan, you need to have a guarantor for security purposes. The guarantor will ensure that the repayment will be made in time. If not, then the guarantor will be responsible, and money will be collected from that person. There is a possibility that there might be mistakes in your credit report; try to rectify them to improve your credit score.

Indiabulls Personal Loan is one of the very user-friendly bank loans. They provide minimum interest rates with many special offers. They tailor the loans according to the customer's needs. They allow loans from as little as Rs.1000 to Rs. 15 lakhs with interest rates starting @13.99 p.a. The tenure ranges from 3 months to 24 months which is quite a reasonable amount of time.

Conclusion: There is a higher chance of getting a loan if you have a high credit score.. It will help in getting loans quickly. You can get personal loans with significantly fewer interest rates if you have an excellent credit score. With a poor credit score, you will get a loan, but a very small amount; you need to have a guarantor as well.

Read More:- Six Things To Consider Before Opting For A Personal Loan Over Other Loans