Anyone wishing to apply for an online instant loan today closely considers their CIBIL score. It is because an individual’s CIBIL score measures their creditworthiness, one of the banks’ primary considerations before sanctioning an individual’s personal loan request.
Read on to learn about the desirable CIBIL score to apply for an online instant loan in India and what you can do if you have a low CIBIL score yet wish to apply for an online instant loan.
What is a desirable CIBIL score?
A “good” to “excellent” CIBIL score is a score that lies between 700 and 900 – an individual’s CIBIL score can range between 300 and 900 – and is representative of high creditworthiness on the part of the borrower. However, if your CIBIL score does not lie in this range, you can still apply for a quick and easy online instant loan.
Online instant loans involve little paperwork and offer flexible tenures. IDFC FIRST Bank’s online instant loan is an excellent example. You can apply for online personal loans in minutes and decide your loan tenure.
What to do if you have a low CIBIL score?
You can get an online instant loan even with a low-to-medium CIBIL score in India. This section provides tips to help you opt for an online instant loan despite having a low CIBIL score.
- Demonstrate your loan-repaying ability
Suppose your financial situation has improved recently, and your online instant loan application is rejected. In that case, you can demonstrate your loan-paying ability to the bank to establish repayment capability.
- Ask if you can get a lower loan amount
If a bank has rejected your online loan application because of a low CIBIL score, you can request the bank for a lower loan amount than the original amount.
- Get a co-applicant
Another way to get an online instant loan is by getting a co-applicant on board. If the co-applicant or guarantor has a steady stream of income and a good credit score, the bank can grant you a personal loan.
- Clear your credit card dues and pay bills on time
One of the most important things to do as soon as you get an instant online loan is to clear your credit card dues by paying them on time. It will also help you improve your CIBIL score.
- Double-check your CIBIL score
Lastly, you must check your CIBIL score regularly to factor in the latest update. Double-checking your score helps you ascertain whether your CIBIL score is as low as the last time you checked it.
Your CIBIL score matters while applying for an online instant personal loan. However, if you do not have an impressive CIBIL score, you can still apply for an instant online loan by following the tips mentioned above.
Leading banks and financial institutions in India, like IDFC FIRST Bank consider several factors besides your CIBIL score. With IDFC FIRST Bank, you can get a loan even with low CIBIL by proving your repayment capability or getting a co-applicant.