Check Free CIBIL Score Online

How to take a Loan with a CIBIL Score of 490?

FAQ444 views

Highlights

  • Wondering whether you can get a loan with a poor CIBIL score of 490? You can, but by some unconventional methods
  • Know all that you need to do to get a loan!

With a CIBIL Score of 490, it is pretty hard to get a loan. But notice how here I am saying hard, not impossible.

First of all, a CIBIL score of 490 is considered to be a very poor score. In fact, anything below 700 is considered to be a poor credit score. This score indicates that you have a bad repayment history and you might default on loans or credit card, if given, in the future. With such a score, it would be very difficult for any lender to trust you. But do not lose hope! We will be telling you some methods by which you can take a loan with a CIBIL score of 490. You can take a look at these methods below. 

Ways by Which You Can Take a Loan with a CIBIL score of 490

Loan Against Fixed Deposit (FD)

In the case of a CIBIL score below 490, you may opt for the loan against a fixed deposit (FD). This is like a secured loan as your FD works as collateral against the loan amount you’re opting for. With the collateral in hand, lenders can trust you when it comes to loan repayment. There are several banks and financial institutions that provide this loan facility to people who do not have a good credit score – 700 & above.

People Also Look For  Can CIBIL defaulter get Home Loan?

Loan Against Mutual Fund

If you have mutual fund investments, then you can easily get a loan even with a CIBIL score of 490. Without prematurely redeeming your mutual fund units, you could get the loan amount according to the value and tenure of your mutual fund units. You can get the loan against the equity and hybrid mutual funds from any banks or NBFCs. Your mutual fund units will act as security for your loan. 

Loan Against Life Insurance

When you want to take a loan in emergency situations but have a CIBIL score of 490, then loan against life insurance can be a good option too. Here your life insurance policy works as the security against your loan in case you default. Lenders would more likely give you the loan even when you have a poor CIBIL score.

Proof of your Income

When you have a CIBIL score of 490, the chances of getting a loan are very bleak because of your bad repayment history. In such a case, you can show your proof of income to show that you can repay the loan amount. If your salary got a hike recently or you could show any additional source of income, then you can use that to get a personal loan from any lender. You may have to pay the EMI at a higher rate of interest.

Apply for a loan with a co-applicant or guarantor

When you have a bad credit score, you may opt for a loan with a co-applicant who has a better credit score and most importantly, a stable income. With this, chances of lenders approving the loan application is greater. You need to tell your co-applicant to submit all his/her KYC documents for hassle-free loan approval.

People Also Look For  How are Personal Loan Interest Rates Fixed by Banks?

People Also Look For

Free CIBIL Score Buy 24K 99.9% Pure Digital Gold Online
Personal Loan Interest Rates September 2020
Fullerton India14.00% - 33.00%
HDFC Bank10.75% - 21.45%
ICICI Bank10.75% - 18.49%
IndusInd Bank11.25%
Kotak Bank10.99% - 20.99%
RBL17.50% - 24.00%
Standard Chartered Bank11.00% - 15.00%
Tata Capital10.99% - 18.00%
Home Loan Interest Rates September 2020
Axis Bank7.75% - 8.55%
Bank of Baroda7.00% - 8.40%
Citibank8.20%
HDFC6.90% - 7.65%
ICICI Bank6.95% - 8.05%
Indiabulls Housing Finance Limited8.80% - 11.05%
Kotak Bank7.20% - 9.30%
LIC Housing6.90% - 7.90%
Piramal Capital & Housing Finance9.00% - 9.10%
PNB Housing Finance8.60% - 9.45%
Reliance Home Finance8.75% - 14.00%
State Bank of India/SBI6.95% - 7.60%
Tata Capital9.20% - 9.35%