If you are planning to take a loan for any need then CIBIL score is very important. It will decide how easily you can get a loan and how much interest you will be charged with. Having low CIBIL score affects financial health heavily, even banks can reject your loan application. Whereas a higher CIBIL Score can get you easy loans and attractive interest rates.
How Low CIBIL Score Affects Loan Eligibility
Usually CIBIL score between 650-750 is considered good. If this score goes below 600 it impacts loan eligibility. Banks won’t give you loan. Also if they issue loans it will be high interest loans. So, how can anyone with bad CIBIL will improve? Don’t worry we got you covered. In this article we will share five options to improve your CIBIL Score again.
Improve CIBIL with Shared Loan
If you don’t have a high CIBIL Score you can join someone else with comparatively better CIBIL as co-borrower or Co-Applicant for loan. This will significantly lower the interest charged on loan. Once you do and repay the loans on time it will boost up your CIBIL score as well.
Gold Loans
For centuries Gold is one of the most secure commodity. Thus you can easily take a secure loan using gold. You can get loan up to 75% of the gold as loan. Gold Loan offers a much lower interest rates than any other loans and timely payment of monthly installments will also rebuild your CIBIL.
Non Banking Financial Company or NBFC
If traditional banks are not offering you loans you can try Non Banking Financial Company like Small finance or co-operative society, They offer loan to low CIBIL individuals as well. Once you get a loan and make timely payment it will automatically improve your CIBIL Score. Also you can transfer the loan to Traditional Banks later once CIBI improves.
Secure Deposit Loans
To save money many people used to invest in PPF, Fixed Deposit or LIC. If you need urgent money and CIBIL Score is down for some reason, then these deposit schemes are very handy. You can easily take a loan from these accounts with lower interest.
