A personal loan/unsecured/unprotected loan is a kind of loan that is offered to the borrowers at the time of financial emergencies without any collateral backup in return. An instant personal loan amount is sanctioned into the borrowers’ account after scrutinizing the borrower’s credit history. Here is what the CIBIL score comes into the picture.
CIBIL score is a numeric representation of borrowers’ payment history which indicates their creditworthiness and the ability to repay the loan amount. It is one of the most important factors that a lender considers while granting a loan. It is because an instant personal loan is a collateral-free loan; therefore, it becomes risky for the lender to grant the loan.
Your credit history or the CIBIL score provides reassurance of timely repayment to the lender. A CIBIL score is a three-digit number that ranges from 300 to 900. The higher the score, the more are the chances to avail of a personal loan online without any hassle. The score on the upper range gives access to better credit deals.
Minimum CIBIL Score for a Personal Loan
The higher the CIBIL score, the better it is for you! However, to avail of an instant personal loan without any hassle, you need to have a minimum CIBIL score of 750. A high CIBIL score reflects that you are a responsible borrower and make timely payments. In addition, credit score plays a vital role in determining the borrower’s eligibility, personal loan interest rate, and the loan amount that can be sanctioned.
Instant Personal Loan for Low CIBIL Score
If you have a low CIBIL score, you must follow the below-mentioned steps to improve your creditworthiness or avail of the loan.
Must Have a Good or Stable Income
If you have a stable and good income source, the chances of availing of an instant personal loan are high.
Paying Taxes on Time
Paying regular taxes on time helps to build up your impression in the eyes of the lender.
Maintaning Bank Balance
A good, stable bank balance reflects that you, as a borrower, can pay back the loan amount. It even helps you to avail the loan easily.
You can ask your family member or friend with a high CIBIL score to be your guarantor.
Reduce Loan Amount
If you have a CIBIL score less than 750, but it lies within a bearable range, don’t lose hope! You may still avail of a loan but of a slightly lower amount, but with a higher personal loan interest rate.
Repay Debts on Time
Timely repayment of EMI and credit card bills will positively impact your CIBIL score and will help you build a good credit score.
If you want to avail of a hassle-free instant personal loan even with a low credit score, you can apply for Level-up Loans from the TrueBalance app. It is the best loan app that lets first-time borrowers or even borrowers with low credit scores avail of instant loans.
The app is available for android users on Google Play Store. You can avail of a personal loan online at any hour of the day from the TrueBalance app, as the app is 24*7 hours available. So, download the app now and live a stress-free life.