If your CIBIL score is low you may need a loan quickly for your money problems. A CIBIL score shows how good you are at paying back loans and using credit cards. A low CIBIL score means you have not paid your loans on time or at all and lenders do not want to give you money.
This can make it hard to get a personal loan, especially when you need it urgently. But do not give up. You can still get a loan quickly even if you have a low CIBIL score.
In this article, we will tell you who is considered a CIBIL defaulter, how to get loan for cibil defaulters, what problems they have in getting a personal loan and how they can solve them. We will also give you some advice on how to make your CIBIL score higher and remove your name from the CIBIL defaulter list.
Who is a CIBIL Defaulter and why does CIBIL matter?
A CIBIL defaulter is someone who has a low CIBIL score, which means they have a bad record of paying back loans. A CIBIL defaulter may have not paid their loans on time or at all, or asked for too many loans or credit cards in a short time.
These things make your CIBIL score lower, and make lenders think you are not a good person to lend money to. CIBIL is a company that keeps track of how people and businesses use credit in India. CIBIL gives them a CIBIL score, from 300 to 900. The higher the score, the more likely you are to get a loan.
What Difficulties are faced by CIBIL Defaulters in Getting a Personal Loan?
CIBIL defaulters face many challenges in getting a personal loan, such as:
- Finding a lender who is willing to lend them money, as most banks and financial institutions reject their loan applications.
- Paying higher interest rates, as lenders charge them a premium to compensate for the risk involved in lending to them.
- Getting lower loan amounts, as lenders limit their exposure in case of default.
- Providing collateral or a co-signer, as lenders may require some security or guarantee before approving their loan.
How To Get Personal Loan With Low CIBIL Score if your profile marked as Defaulter
- Asking someone with a good CIBIL score to help you get a loan, and they will pay back if you can’t.
- Getting a loan by giving something valuable, like gold, house, or money in the bank, to the lender until you pay back.
- Getting a loan from online places or NBFCs, who may say yes more easily and quickly than other places!
- Applying for a peer-to-peer loan, where you borrow money from individual lenders through an online platform, without any intermediaries.
Check- how to stop loan app harassment
Easy Ways to Improve Your Low CIBIL Score
Getting a loan when you have a bad CIBIL score is hard, but not impossible. But it is better to avoid it. A bad CIBIL score can make your money problems worse, and make it harder to get good loans later. So, you should try to make your CIBIL score better and fix your money problems. Here is how you can do that:
- Give back the money you borrowed and pay your credit card bills on time and fully, without missing or delaying any payments.
- Use less of your credit card limit. For example, if your limit is 1000 rupees, try to use less than 300 rupees.
- Don’t apply for many loans or credit cards in a short time, as it shows that you need money badly and makes your score worse.
- Look at your credit report often and fix any mistakes or wrong information that may make your score lower.
Check Your Cibil Score in Free
How to Get Your Name Removed from the CIBIL Defaulter List
If you have improved your CIBIL score and cleared your dues, you may want to remove your name from the CIBIL defaulter list. This is not a separate list, but a part of your credit report, which shows your credit history for the past seven years. To remove your name from the CIBIL defaulter list, you need to follow these steps:
- Request a copy of your credit report from CIBIL and check for any errors or inaccuracies.
- If you find any, dispute them with CIBIL and provide the relevant documents to prove your case.
- If the dispute is resolved in your favor, CIBIL will update your credit report and remove the negative information.
- If the dispute is not resolved, you can approach the lender who reported the default and request them to update the information with CIBIL.
- If the lender agrees, they will send a confirmation to CIBIL, who will then update your credit report and remove the default status.
Conclusion
Getting an urgent loan for CIBIL defaulters is not easy but it is not impossible either. There are some options available for CIBIL defaulters to get a personal loan, but they come with higher interest rates, lower loan amounts, and stricter conditions.
Therefore, it is better to improve your CIBIL score and remove your name from the CIBIL defaulter list, by following the tips mentioned above. This will help you get access to loans at better terms, and also improve your financial stability and security.
FAQs related to urgent loan for CIBIL defaulters
Q 1: What is a CIBIL score and why is it important for getting a personal loan?
A CIBIL score is a number from 300 to 900 that shows how well you have paid back your money in the past. The higher the number, the more likely you are to get a loan.
Q 2: What is the minimum CIBIL score required for getting a personal loan?
The lowest CIBIL score you need to get a loan may be different for different lenders and loans. Usually, a score of 750 or more is good, and a score of 550-600 may be okay for some lenders, but they will charge you more money and give you less money.
Q.3 What is a co-signer or a guarantor and how can they help a CIBIL defaulter get a personal loan?
A co-signer or a guarantor is someone who has a good CIBIL score and promises to pay back the loan if you can’t. They help you get a loan by being your backup. But they also have to share the burden and the danger of the loan, and their CIBIL score may go down if you don’t pay back or miss the payments.
Q.4 Can a loan defaulter go to jail in India?
A loan defaulter cannot go to jail in India for not paying back a loan, unless the lender accuses them of cheating or lying. Not paying back a loan is a money problem, not a crime.
Q.5 How many years does CIBIL keep records?
CIBIL keeps records of your credit history for 7 years. This includes records of defaulters who did not pay their loans or credit cards.