look news india
Credit score is very important while taking a personal loan. If your credit score is good then any bank will easily give you a personal loan. On the other hand, if your credit score is low then you have to face a lot of difficulties in getting a personal loan. Today in this article we are going to tell you about some tips with the help of which you can easily take a personal loan even if you have a low credit score.
Apply for personal loan with a co-applicant
If you suspect that the bank may reject your loan application on the basis of low credit score, add a co-applicant to the loan application, which will increase the chances of credit approval. But remember that the co-applicant must be an earning member of the family.
Stable job with a reputed employer
If you are employed in a reputed company or a public sector organization, the chances of loan approval increase, and the lender cannot cite your CIBIL score as a reason to reject your application. Banks and NBFCs feel that employment in large reputed companies and public sector enterprises has more income certainty than others.
Low debt-to-income ratio
When considering a personal loan application, most lenders look for a low debt-to-income ratio, preferably less than 40%, as this reflects a balanced debt to income level of the loan applicant.
Loan from NBFC or Fintech App
If you think that you will not be able to get a personal loan from banks, then you can also apply for a loan from NBFC or any fintech company. Their terms and conditions are quite flexible as compared to banks and NBFC companies.