Low Cibil Score 500-600 Personal Loan : In today’s fast-paced economy, inflation can lead to unexpected financial needs. Often, you may need a significant amount of money immediately. In such circumstances, banks, NBFCs (non-banking financial companies), and loan applications become viable options for securing loans.
When you apply for a personal loan, your CIBIL score is an important factor. A good CIBIL score ensures quick loan approval, while a poor score makes getting a loan challenging. If your CIBIL score is low, you may wonder if you can still get a loan and if so, who gives it and how much you can get. This article addresses these questions in detail, so read on to learn more.
What is CIBIL Score? Low Civil Score 500-600 Personal Loan
CIBIL score is a number between 300 and 900 that indicates your creditworthiness and ability to repay loans. When you apply for a loan from a bank, your CIBIL score is checked to assess your loan repayment history. A good repayment track record results in a high CIBIL score, which is favored by banks.
Minimum CIBIL score required for personal loan
For personal loans, a high CIBIL score is crucial. Generally, a minimum CIBIL score of 700 is required for an unsecured personal loan. Although some NBFCs and financial institutions may offer loans with a lower CIBIL score, most banks set the threshold at 700.
Loan availability with CIBIL score below 700
If your CIBIL score is below 700, banks will check your previous loan repayment history before sanctioning the loan. Although it is possible to secure a loan with a CIBIL score below 700, the process is more stringent, and approval is not guaranteed.
If you have defaulted on a previous loan, the chances of getting a new loan are very low, as banks and financial institutions are wary of lending to people with poor payment history.
Loan amount for CIBIL score of 500-600 | Low Civil Score 500-600 Personal Loan
Some NBFCs are willing to give loans to individuals with a CIBIL score between 500 and 600, although the loan amount is usually small, ranging from ₹5,000 to ₹25,000.
NBFCs offer loans with low CIBIL scores
Some notable NBFCs and loan apps like KreditBee and Navi Loan offer loans to individuals with low CIBIL scores. This platform allows you to avail loans using your Aadhaar Card and PAN Card. However, these loans come with high interest rates, making them suitable only for emergency situations.
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While a low CIBIL score of 500-600 limits your loan options, it completely disqualifies you from getting a loan. NBFCs like KreditBee and Navi Loans can offer small loans even with low credit scores, albeit at higher interest rates. Maintaining a good CIBIL score is important for better loan terms and chances of future approval
