Chennai is a land of opportunities, traditions, and dreams. But sometimes, you may face sudden money requirements, maybe for a medical emergency, a wedding, or education expenses. These are the times when getting a personal loan in Chennai can be quite helpful. But what if your CIBIL score is comparatively low to avail a loan?
Well, worry not! You are covered.
You can still get a personal loan with a low CIBIL score in Chennai if you follow the right steps. Let’s understand, in the following read, how you can manage a loan for low CIBIL in Chennai, what options you have, and how to improve your credit score.
Apply with NBFCs or Fintech Lenders
Banks usually say “no” if your credit score is low. But NBFCs (Non-Banking Financial Companies) and fintech lenders like CASHe are more flexible. They check your current income and repayment ability, not just your past record. CASHe checks your SLQ (Social Loan Quotient) score and hence, offers a low CIBIL score personal loan in Chennai with quick approvals, zero paperwork, and a complete online process.
Consider a Co-applicant or Guarantor
If you add a co-applicant, like your spouse or parent, or a guarantor, it would certainly improve your loan approval chances. Lenders usually feel safer when someone else is also sharing the responsibility.
Also Read : Eligibility Criteria for Personal LoanShow Proof of Stable Income
If you have a low CIBIL score, then it is recommended to show proof of stable income. This way, you can increase your chance of getting a personal loan in Chennai. You just need to submit salary slips, bank statements, or ITRs so that you can show lenders that you are capable of paying back.
Opt for a Secured Loan (with collateral)
If your CIBIL score is low, you can also consider secured loans where you give collateral like gold, property, or fixed deposits. With this, the bank or the lender has security, and hence, they are more willing to give you a loan for a low CIBIL in Chennai.
Maintain a Good Relationship with Your Bank
If you already have an account or fixed deposit in a bank, you can apply for a loan from the same bank. Banks often trust existing customers more and may approve your loan request despite a low CIBIL score.
Best Alternatives for Borrowers with Low CIBIL Score in Chennai
Salary Advance/Instant Loan Apps
Apps like CASHe provide instant loans, even if your score is not high. This makes it a good option to get private finance for someone with a low CIBIL score in Chennai.
Gold Loans
You can also avail gold loans. Many banks and NBFCs offer gold loans with minimal documentation. As gold is kept in the form of security, your credit score does not really matter.
Credit Union or Co-operative Bank Loans
Local co-operative banks or credit unions are often more friendly. They give smaller loans even to people with low credit scores.
Steps to Improve Your CIBIL Score for Future Loans
Pay EMIs and Credit Card Bills on Time
Always pay your EMIs and card bills before the due date. This is the easiest way to improve your credit score.
Keep Credit Utilisation Low
Never use your full credit card limit. If possible, keep the use to only about 30% of the total available limit. This would show lenders you are managing your money well.
Avoid Multiple Loan Applications at Once
Do not apply for too many loans at the same time. It usually makes you look desperate for credit and eventually reduces your chances of approval.
Regularly Check Your Credit Report for Errors
Sometimes reports may have mistakes. Hence, you should check your CIBIL report regularly and get errors corrected.
Also Read : Loan with a Low Credit ScoreConclusion
It is not really hard to get a personal loan for a low CIBIL score in Chennai. You can always apply with NBFCs or fintech lenders like CASHe to avail instant loans. With CASHe, you can get an instant low CIBIL score personal loan in Chennai up to ₹3 lakh, without much hassle. Just apply on the CASHe app and get the loan approved within minutes.
