A credit score is one of the most important key factors for personal loan approval. Many applicants wish to avail of a loan but cannot because of a low or bad credit score. Having a score above 750 makes it easier to sanction the loan for borrowers. Most of the lenders reject the loan application of low credit applicants as there is a higher risk of payments defaulting. And because of this, for an individual, it becomes challenging to get a quick loan to fulfil the financial crunches. While you may have heard that having a bad credit score may reject your loan request, that’s not true at all. Following a few simple tips can help you achieve the best personal loans without any hassle. Check them below!
Ways To Avail Best Personal Loans With Low Credit Score
- Opt For a Secured Loan
With a bad credit score, you can apply for a secured loan that will ask for collateral or security such as property, gold, financial securities, etc. Against these pledges, you can easily avail of a loan to meet your financial needs.
- Apply With a Co-applicant
A co-applicant can improve the chance of getting your loan approved. It enhances eligibility and reduces the risk of repayment defaults.
- Choose a Lower Loan Amount
When you hold a bad credit score, it’s suggested that you choose a lower loan amount that will increase the chances of approval. Applying for a higher loan amount can reject your application.
- Show Income Proof
Whether you are self-employed or a salaried professional, make sure to provide the right income proof to enhance your chances of getting loan approval. A higher-income source ensures that you are capable of repaying your loan on time. If you are facing a cash issue and at the same time, holding a bad credit score, then keep all your income proof documents ready to receive the best personal loans instantly.
- Improve Credit Score
A high credit score always increases that loan approval rate. But when you have a low credit score, then you can boost it up by following a few simple steps. For example, pay your EMIs and due bills timely, choose a longer tenure for repayment, do not apply with multiple lenders for a loan, and also rectify the credit report error if there is any. These things will help you to enrich your credit score.
Tips To Avail Best Personal Loans Online Quickly
There was a time when getting a personal loan was daunting for many borrowers because of the huge amount of time and paperwork involved in the process. The number of documents and their photocopies, standing in a queue to apply, and a long waiting period for approval made it a long tiring procedure. But the evolution of digital technology and modern advancement has completely changed the process of lending. Now with a few simple clicks, you can avail the best personal loans online easily and efficiently. Your smartphone is the gateway to any financial needs. Whenever you require cash, apply for a loan online and get the amount directly into your bank account.
Previously, the time taken to disburse a personal loan was 10-15 days and now this has been reduced to 48 hours of application approval. Also, the minimum paperless documents keep the stress away and make the entire process quick and super smooth. Even the physical verification procedure has been replaced online. Lenders are trying their best to provide you the loan in the shortest period.
In recent times, personal loans are the best financing instruments during the time of emergency. Be it your dream wedding, planning for a home renovation, or wishing to travel abroad, the best personal loans are the answer. Quick loans are popular because of their easy eligibility criteria, no collateral feature, quick processing, flexible repayment schedule, no prepayment penalty, and lower interest rates. At Buddy Loan, you can get an instant personal loan up to Rs. 15 Lakhs at competitive rates starting at 11.99% p.a. with a tenure period of 6 months to 5 years. Few basic documents like PAN, Voter Id, Aadhar, salary slips, and bank statements are enough to sanction the loan. But these documents may vary from lender to lender.
Today’s borrowers look for customized personal loans, and at Buddy Loan, you can be sure to get a tailored loan to fulfil all your financial needs. Whatever the requirement is, apply online and get it with ease and convenience!
Best Personal Loan: Frequently Asked Questions
Having a good credit score and meeting all the loan eligibility criteria can help you to avail a personal loan quickly with lower interest rates. It’s always recommended to check and do proper research before you apply for a loan. Check out the below FAQs that will help you with all your queries and doubts regarding loans.
What is a Personal Loan?
A personal loan is an unsecured loan provided by banks, non-banking financing companies, or lending platforms without any collateral or guarantor. Generally, it is used for debt consolidation, meeting medical emergencies, home renovation, business needs, buying certain assets, and many more.
How to Check the Eligibility Criteria for Getting a Loan?
Most lenders update the personal loan eligibility criteria on their respective websites. Go through the information and know whether you can avail of a loan or not.
What is the Maximum Loan Amount that Can be Borrowed?
The maximum loan amount that you can acquire depends on whether you are a salaried person or self-employed. And depending on the lender and your monthly income, the amount may vary. Well, an instant personal loan through Buddy Loan is always easy, instant, and hassle-free. On this platform, you can apply for a loan amount of up to Rs 15 lakh or more depending on the needs.
What are the Documents Required to Apply for a Loan?
- Proof of identity – Voter/Aadhar/PAN
- Address proof – PAN/Passport
- Proof of income
- Proof of business (for self-employed individuals)
These are the general documents that you need to submit. But check with the lenders if you need to provide any other documents.
What is the Repayment Tenure for Personal Loan?
The tenure can be between 1-5 years. Before you apply for a loan, check the details with your lender.
What are the Things You Need to Look for Before Applying for a Loan?
Before applying for a personal loan, you need to look at all the below key elements and compare them to choose the best.
- Interest rate is one of the most important factors to consider as it makes a substantial difference. The ROI ranges between 10% p.a. To 24%. Buddy Loan offers 11.99% p.a.
- Check for repayment flexibility and also ensure is there any penalty for making late payments.
- Even if you are offered a low interest rate, a high processing fee can be heavy on your personal loan amount. So be careful about it.
- Make sure you have a good credit score. Otherwise, improve the score and then apply for a loan.
Why It is Necessary to Have a Good Credit Score?
Your credit score determines your creditworthiness. Be sure the score is good enough to avail the best personal loan at lower interest rates. If you are planning for a personal loan, maintain it from now onwards.
Various financial institutions offer loans with low credit scores. Do proper research before you apply for one as this will save your effort and keep you stress-free. At Buddy Loan, get the best personal loans up to Rs.15 Lakhs at lower interest rates starting from 11.99% p.a. And you don’t need to pledge anything to avail of a loan. Match the basic eligibility criteria and get your loan directly to your account within hours. Apply online now.