Tips to get a loan with no credit History-Follow this 5 Strategy That Work 200%
Getting Loan With Bad cibil score
1.Sometimes being financially sound still a person is unable to get a loan due to low civil score though having a good capacity to repay a loan may be due to negligence, lack of information or not making the payment on time (late payment).such person can approach a bank for a loan easily if he has a fixed deposit, bank on behalf of the fixed deposits approves a loan to that person.
2. A customer who never approached for a loan or for any credit from any financial institution also faces problem in getting a loan.As the bank has no knowledge about the repayment behaviour of the customer as he is a customer without cibil.In that case, the bank may provide him with a loan if he brings a guarantee as an assured witness for the loan applied for.but this kind of facility is not available with all the banks, a customer has to search for such banks in order to apply for the loan.
3.Some banks may provide loan to the customer holding a credit card, but such loans are provided according to the limit set or authorized to the customer
4 Sometimes due to low cibil score, a customer is unable to get a loan from the bank. Such customer can approach nbfc or cooperative bank, but such banks issue a loan with high interest (they offer such loan in case of home loan or loan against property where bank keep collateral for safer side).
It is a common belief that if you do not have healthy cibil score there would be a problem to get a loan because nowadays as per RBI instructions all financial institution check cibil score first before approving any loan
It is, first of all, we need to understand about cibil score as there are facts and myths about it. Its a organisation which keep track of the records of credit transaction of an individual ,company ,proprietor, organisation etc.if an individual or any of the above approaches bank ,nbfc or any financial institutions for loans, bank, in turn, checks the cibil score of the individual in order to approve any loan to them.in that case bank or financial institutions take the help of Cibil bureau to have the correct visibility of the credit history on behalf of the person applied for loan.check civil score
Why bank check credit report before approving loan or disbursement of a loan ?
Bank checks the credit history of an individual or institutions to get the loan eligibility information that whether the individual has earlier applied for the loan if yes then the kind of loans and his behaviour of repayment of the loan.With the above information, banks get the clear picture of the credit history and thus comes to the conclusion whether the individual or institution is eligible for the loan applied for.
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