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How to Secure an Urgent Loan with Bad Credit in India

Financial emergencies are unpredictable and can strike at any moment for anyone. And when they arrive, digging into your savings is the only option to deal with such a situation. Apparently, it will straightforwardly disrupt your future financial goals, which you have been planning for a long time. Personal loans are the way to escape this situation, becoming the most popular financing source with no end-use restrictions.

Although you have to be eligible for a personal loan, the applicant’s eligibility largely depends on your CIBIL or credit score. Securing a loan amount is a daunting task with bad credit in India. But we have found a solution for this. Today, we will delve deeper to understand how one can obtain an urgent loan while having bad credit in India. Also, we will guide you thoroughly regarding “how to increase credit score” and “benefits of a good credit score.”

Bad Credit Scores: A Brief

There are numerous reasons why one has to face a bad credit score. For instance, when somebody stays unemployed for a long month, they are not able to pay EMIs and do not have enough money to pay credit card bills, resulting in the downfall of their credit score. But once they get hired by an employer, they will be able to handle their unpaid bills smartly. Considering their good days, many lenders offer Urgent loans even with bad credit in India. Loans that have been considered to be sanctioned for bad credit are typically unsecured loans, particularly those invented for people with bad credit scores. Also, there are many lending institutions that do not see credit records and consider income and employment status to assess their eligibility for an urgent loan.

Tips for Obtaining an Urgent Loan with Bad Credit in India

Here are a few methods that can help you secure an urgent loan even with bad credit in India:

  • Inquire at NBFC.

NBFC stands for non-banking financial company. When you think about a bank, it is more expected to focus on the loans it offers instead of securing your everyday savings. And NBFC exactly works on it. It is the best option to opt for urgent loans with low credit scores. 

  • Collateral

Urgent loans are typically unsecured, as you do not have to submit land or something as security. But when you have a bad credit score and want your lender to trust you, simply offer them your valuables to keep as security. 

  • Look for a Guarantor

Guarantors play an important role, as lenders consider them a backup plan when you are unable to pay off the debt. Guarantors can be considered a vouch for you and could be helpful for getting a loan even if you are not meeting the eligibility criteria. 

Benefits of a Good Credit Score

There are endless benefits to a good credit score. Be it applying for a loan or enhancing the limit of your credit cards, if you are good at looking at your credit score, it is an undeniable truth that you will be considered more eligible than the others who are juggling with a low credit score.

Proven Methods to Increase Credit Score

If you have a bad credit score, you are fortunate to have several steps to help you increase your credit score smartly. Let’s go further:

  • Be regular with EMI’s: It is vital to manage your monthly EMI’s as decided. You should timely pay your monthly bills to increase your credit score
  • Limited Credit Utilisation: Limited utilisation of credits proves how smartly you maintain living in line with your income. Staying below the limit of your credit makes the lender believe that you use credit as much as you are able to pay. 
  •  Maintain a Credit Mix: You should ensure a healthy mix of secured and unsecured loans. Applicants who have more credit accounts are considered more eligible than those who are new to credit or have a smaller number of credit accounts.

EndNote

The given information is all about obtaining urgent loans efficiently, even with a bad credit score. Opt for the methods we have suggested in this article and secure the loan you require. But you have to be punctual in repaying the loan amount at the agreed-upon tenure and should be regular with your monthly EMIs. And, if you are still in a dilemma about where you should inquire for an urgent loan, it is suggested that you reach out to Credit Walle to experience the difference.

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