While applying for a personal loan, it is essential to check your eligibility criteria because unless you are eligible with all the factors you can’t get the approval and, therefore, you must check the CIBIL score. If your score is higher i.e., approx 750 or more, then, you can easily apply for a Personal loan based on credit score and income. Whereas for those applying with less credit score, higher income is essential for their loan application. There are different steps involved in the loan application and once you complete the application process along with the document submission, it will be received and reviewed by the lender. After the satisfactory verification, you will get the approval and disbursal of the amount. So, let’s get acquainted with the different steps for the loan application and the ways to increase the CIBIL score from 600 to 750 for better financial support.
Step to apply for the personal loan for a CIBIL score of 550
- Search the lender offering personal loans for the lower CIBIL score
- Check the offers and all the fees applied on the personal loan
- Check your eligibility form for a personal loan
- Click on the Apply Now button which will take you to the application page
- Enter all the required details in the form and upload your documents
- Get the approval for the personal loan, and submit the documents as per the demand of executives.
- Get the disbursal of the loan amount directly into your account.
How to increase the CIBIL score from 600 to 750
If you have a lower CIBIL score and facing difficulties in the approval of the loan or have to pay higher interest on the personal loan then, use different techniques to increase the CIBIL score from 600 to 750 or more and these are
- Borrow short term loan with a lower amount that can be paid easily
- Repay the amount on time or before the repayment date
- Never get delayed in the repayment
- Use the lower limit of credit card i.e., always try to use the thirty percent of your card limit so that you can pay easily.
- For the shopping of higher amounts, convert the payment into EMIs for easy repayment.
- Apply for a loan with limited lenders, never apply for an excessive amount or never apply with multiple lenders, because, checking multiple times can reduce the credit score.
Personal loan for a CIBIL score of 550
CIBIL Score Range | NBFC |
Below 550 | Not eligible for personal loan |
550 – 600 | Eligible with high interest rates, limited loan amount |
600 – 650 | Eligible with moderate interest rates, flexible loan amount |
650 – 700 | Eligible with competitive interest rates |
700+ | Eligible with best interest rates |
Features and benefits of personal loan for a CIBIL score of 550
A personal loan can be beneficial for different reasons, especially when you are applying for a personal loan due to the cash crunch and want an instant cash arrangement for household needs. And some, essential features and benefits of the personal loan are as follows
- Instant approval of the loan application, when you are eligible for the loan
- No restrictions on the usage of the loan amount
- Competitive interest rate is available for the personal loan
- With the regular borrowing it enhances the CIBIL score
- Disbursal of the loan amount is faster and can help you get the loan shortly
Conclusion
If you are willing to apply for a personal loan and your CIBIL score is less than, initially you can face problems, especially with the lenders having strict eligibility criteria. But, on the basis of your income, you can choose the lender providing a personal loan with a lower CIBIL score. You can search for a lender with such facilities and then proceed with the personal loan with the following steps. With various features and benefits, you will be able to get the loan which will help you manage the cash and with the regular repayment, your credit score will be elevated. So, for your financial requirements, search the lenders and apply for the loan.
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