We know of many financial institutions that offer personal loans, especially to individuals with low scores. A few institutions also have to check other eligibility criteria including income, employment, history, debt ratio, etc.
A sum of about Rs. 1,00,000 is a manageable amount, and hence it wouldn’t be grueling to get it. Timely repayments of installments can really help to create a positive display of credit history. This will also push an enhanced chance for better credit.
Having a good credit score is not the end of the story, however, it takes away a bundle of responsibilities. Just a credit score is not all, there are ways to procure a personal loan, let’s see below:
- Opt for a Gold Loan
A few good financial institutions have the authority for gold loans. All one needs to do is to submit gold into the bank and have a gold loan back in return. This is easy for people with an ideal amount of gold in the bank.
- Personal Loan with security
A score over 700 is considered good. Although, it’s not a necessity to have a super good credit score. There’s another option for individuals to approach with collateral and get a personal loan quickly. This is a brilliant idea for personal loans in an efficient way.
- Private placement of loans
Private placement of debt through individuals can be the fastest way to get to funds. Of course, it’s easier to pay back in this case. One also has a good list of options to choose the CIBIL score.
Now that you know that your personal loan can be easily procured without a credit score. You can go for a personal loan even when there is no credit score to refer to. The overall process stays the same for all whether old or new.
The only variation being that individuals with a credit score will have a quicker response while others will require further assessment. It’s difficult to assess creditworthiness otherwise, which makes it tedious for a competitive interest rate.
The process of personal loan application begins with uploading required documents like ID proof and income document. With that, it’s important to have your complete income documents, one would be three months’ salary slips, last six months’ bank statement, Form 16, etc.
Let’s have a quick glance at the documents to be used for KYC:
- Identity Proof- PAN, Passport, Voter ID, Driving License, Aadhaar Card or other government-approved ID.
- Address Proof- Driving License, Voter ID, Passport, Utility Bills or any other government approved ID with the updated address on top.
People with incomplete documents will not qualify for quick personal loans, as otherwise promised. Fixed employment is a must! In some exceptional cases, a few documents can steal the magic!
Let’s say you’re a new user of credit and do not have a past history. In that case, you probably do not have history but you can build one. That way it cannot be generalized that individuals with low credit do not get personal loans. Though, the loan approval will depend on a number of factors as mentioned before income source, employment, credit potential, etc. So that makes it easier to visit a bank and get an instant loan.