How to Get Loans if I am a CIBIL defaulter?
Last Updated : Feb. 19, 2020, 10:39 a.m.
There are ways by which CIBIL defaulters can get loans in India. So, you don’t need to lose hope. You may find these ways a bit different and difficult but you will surely get loans.
Being a CIBIL defaulter simply means that you have a pretty low CIBIL score. It can be even on the negative side. This is the result of missing your loan EMIs and credit card bills for a significant period. And when you miss them regularly, your credit score gets affected. Lenders generally consider defaulters as individuals with high risk and they avoid lending them.
Methods of Getting Loans for CIBIL Defaulters
As we told before that CIBIL defaulters come in the category of high credit risk individuals, so lenders generally don’t give them the unsecured loan. But there are some ways by which you can get loans. You can have a look at them below.
Secured or Collateral Loans
You can opt for secured loans when you don’t have a good CIBIL score to show it to lenders. These kinds of loans for CIBIL defaulter can be availed against shares, fixed deposits (FDs), or even Gold. The loan amount will be dependent on the collateral you’re presenting to the lender. Lenders usually don’t check your credit score for giving such loans, as in any case of you defaulting again, they have the security as a cushion. So being a defaulter, a secured or collateral loan could be the right choice for you!
Partner’s CIBIL Score
If you have a low CIBIL score, but your spouse has a good credit score, then you can easily apply for the loan being a co-applicant. The loan will be approved on the basis of your partner’s credit score. By applying as a co-applicant, you increase your chances of getting a loan as the lender will check the score of the primary applicant. Lenders will consider this less risky because of your spouse’s good score.
Loan Backed by a Guarantor
If you are only limited by your credit score and do not have any financial problem, then you can opt for a loan backed by a guarantor. Some lenders give you the option of opting for a loan with a guarantor who is creditworthy and has a good repayment track. By this lender minimize the risk factor attached to lending. But you need to remember that your guarantor will have the full responsibility for this loan. If you ever miss any payment, the CIBIL score of the guarantor will take a dip. If you will not be able to pay the loan, the liability of paying the outstanding amount will fall on to the guarantor.
How can you get yourself out from the CIBIL Defaulter List?
To get yourself out from the list of defaulter list, you could ask for a settlement from your lender. The settlement amount will be a bit lower than the total outstanding amount. By consolidating your debt, you can get yourself a fresh start. You can opt for a personal loan to pay the settlement amount in one go and later pay the personal loan EMIs regularly.
When you will pay your EMIs on time, your CIBIL score will increase gradually. With a good CIBIL score, you will have the freedom to opt for any kind of unsecured loan or Credit Cards.