Obtain Personal Loan with Bad Credit CIBIL Score in Delhi

21 Dec

Obtain Personal Loan with Bad Credit in Delhi

Trying to obtain a personal loan is a terrible for most of us in any circumstances and, attached with a bad credit score or CIBIL score; it promises to be a hellish knowledge for everyone involved.

Low or bad credit rating efficiently ruins your chances of getting a loan from a financial institution because their outlook you as a bad egg, someone who may default on their repayments and can turn into a bad asset for them. Their base is merely on your history and a theoretical approach to credit assessment.

CIBIL is the premier scoring bureau used by Indian institutions.

What does bad CIBIL score, in fact mean?

A credit score is based on an individual’s complete debt and credit history; there are a variety of factors that have an effect on your CIBIL score like:

The repayment history (35%)

The amount you owe to lenders (30%)

Number of years of servicing debt (15%)

Number and amount of recent loans taken or applied for (10%)

The Credit Mix (10%)

One gets a “so-called” bad credit due to one or more of the following reasons:

When a borrower defaults in making any of the repayments

When a borrower extensively shops for a loan, but gets rejected repeatedly

When a borrower has never taken a loan in the past and there is no credit history to legalize.

Whenever one wants to benefit a loan, the financial institutions like banks do a background make sure on the borrower to determine if she/he is capable of making the payments and clearing their loan. CIBIL (Credit Information Bureau Limited) score is a number in the range 300 – 900. Higher the number, higher is your possibility of availing a loan and also at a better interest rate.

Mr. Gaurav Desai, a DU professor, recently applied for a personal loan to fund his sister’s marriage, but he was in for an impolite shock when it got rejected. He was shocked because he had by no means even taken a loan or a credit card in all his life to be deemed as a bad investment!

The problem here is that poor credit scores can be either your own making or just bad financial management/no credit history, which is why banks turn down so many loans.

So, how to acquire a loan with bad credit score?

The good news is, with the beginning of technology and finance gradually merging, bad credit scores don’t essentially mean that you cannot get personal loans. Many times they will reject loans based on bad credit scores, but fail to think the tons of information contradicting the bad scores that would otherwise make you eligible for a personal loan.

This approach ensures that individuals with a less favorable CIBIL score are also likely to get a loan through these platforms if they are credit worthy as their proprietary machine-learning algorithm generates a more holistic credit profile of the borrower.

This does not take away from the importance of maintaining a good CIBIL score, all efforts must be made to try and maintain a good CIBIL score.

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Finheal

2 thoughts on “Obtain Personal Loan with Bad Credit in Delhi”

Finheal - October 21, 2017 at 5:31 pm

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