- Email: info@loansettlement.com
What is the purpose of taking this loan?
For a new expense? or To pay off your credit card debt or another loan?
If your CIBILTM score is low because you have missed payments or defaulted on some debts and now you're seeking a personal loan to pay off existing loans, You run the danger of becoming trapped in debt. Loan Settlement may be a more cost-effective option. Our experts explain everything you need to know about obtaining a personal loan with low CIBILTM score, as well as how and why you should consider loan settlement if you're having money issues.
Even if your credit score is low, you can qualify for a personal loan. You will however need to go above and beyond to demonstrate that you can pay it back.
A credit score of 600 or more is considered good. Your loan application can be jeopardized if your CIBILTM score is below 600. Personal Loans with low CIBILTM score are, nevertheless, not unattainable. That said, interest rates on Personal Loans for individuals with bad credit score might be greater.
f you are not able to avail a personal loan because of poor credit score, you can get a secured loan. Your collaterals like property, fixed deposits, gold, etc. can be used to avail a loan with a low credit score.
You might be able to borrow up to 80% of the asset price. For example, if you have some gold, you can always pledge it with your bank and get money instantly for around 80% of the value of gold. This way, you can get money without having to wait for your credit score or income history to improve.
Peer-to-peer lending is growing in popularity these days. It is a concept in which individuals borrow and lend money from each other without going to a bank or any financial institution. There are many P2P lending portals in India like Faircent, Lendbox etc. Despite the fact that P2P platforms are accessible to anybody who requires money, they primarily attract individuals from low-income groups or with poor credit scores who have no other option.
If your CIBILTM score is low because you are missing payments or defaulting on existing loans, taking more loan is not advisable. A better strategy is to settle your existing debts and start from a clean slate.
Debt settlement or loan settlement is a process wherein the borrower agrees to compensate the lender by paying an agreed upon sum for less than the amount owed. The lender gets some of his money back and also saves on time and legal costs. For borrowers, debt settlement is often a last resort but there are ways to get it done successfully.
Lenders may be more flexible when it comes to smaller amounts. If your funding requirements are modest, you might be accepted even if your credit score is low. From the lender's perspective, if you apply for higher value loans with low CIBILTM score, the chances of you defaulting is higher. Hence apply for a loan amount that seems within your capacity to repay.
If you have recently got a new job or salary hike, you can submit documents like employment letter, income proof, income tax returns etc. to the bank as evidence of your increased capacity to repay a new loan. Lenders want to know that you have a regular monthly salary which can cover EMI payments. The likelihood of your personal loan being approved improves if you have consistent income.
Lenders may be more flexible when it comes to smaller amounts. If your funding requirements are modest, you might be accepted even if your credit score is low. From the lender's perspective, if you apply for higher value loans with low CIBILTM score, the chances of you defaulting is higher. Hence apply for a loan amount that seems within your capacity to repay.
If you do not have an urgent requirement, you always have the option of first improving your credit score and then applying for a loan. The best approach to raise your credit score is to pay all of your loan and credit card bills on time and in full right away. If you can't afford to make complete payments, you may need to cut back on expenses. Make sure you don’t spend more than half of the credit limit offered to you. One of the most effective ways to improve your credit score quickly is to use only a tiny portion of the credit limit and pay off your debt in full every month.
If you are unable to repay your debts on your own, consider taking the help of a debt settlement company like us. We have helped thousands of individuals settle their debts in various ways. We can help you consolidate your multiple outstanding liabilities, negotiate with the creditors and you can repay them by installment over an agreed amount of time.
We can work out a settlement that works for you, regardless of your circumstances. You may be able to settle your obligations as soon as 90-120 days after signing the contract, so get started now by applying!