What is CIBIL Defaulters?
People who availed of loans and are not in a condition to repay are called CIBIL defaulters. In actuality, CIBIL does not keep any list or data for defaulters. It’s just your Credit score on which a bank or lender can trust to approve your loan. While reading more from this page, you’ll have proper knowledge of the personal loan for CIBIL defaulters.
Your financial information is stored in a credit report so that potential lenders can determine whether you’re a responsible borrower or an unreliable one. If you make the mistake of disturbing your timely repayment, you’ll see a drop in your credit score. If you stop making repayments on your loan, you’ll be listed on the CIBIL defaulter list; meaning a low credit score holder.
It could create issues that you will have to deal with in the future. Financial institutions and banks may be cautious when approving credit or loan requests. In some instances, you might not have access to financial services for years to the end.
How is Personal Loan for CIBIL defaulters possible?
Before moving forward to the personal loan for defaulters, let’s know a little bit about the CIBIL score.
What is CIBIL score or Credit History?
CIBIL score is a three-digit statistical summary of your credit. Its count is from 300 to 900.
What is a CIBIL report?
The CIBIL report is called CIR and it stands for Credit Information Report which the CIBIL has evaluated using a credit history obtained in the past. In short, CIR is a history of the types of loans and individual credit payments done periodically to the credit institutions.
Generally, CIBIL can be categorized into 3 section:
1. Poor – 300 to 500 | 2. Medium – 500 to 700 | 3. Good – 700 to 900
Eligibility Criteria of Personal Loan for defaulters
If you have a “Low Credit Score” and you’re looking out for a Personal Loan, then it would be challenging for you to acquire a personal loan until you meet the following criteria:
- The loan applicant must be over 21 years of age.
- The applicant must earn INR 15000 or more.
- Earning must be credited directly to the applicants bank account.
- The credit score must be a minimum CIBIL score of 550 or a minimum Experian score of 630+.
Required Documents:
1. Identity Proof: Aadhaar card / Driving License / Voter Id card / Passport / PAN card
2. Address Proof: Aadhaar card / Driving License / Voter Id card / Passport / Utility Bill (not more than 2 months old) / Ration Card
3. Income Proof: Salary Slip / Form 16 / Bank Account Statement / Copy of Pension/Payment Order / P&L Statement and Balance Sheet / Previous Year ITR Employment
4. Business Proof: Letter of Appointment / Job Contract / Labour Identity Card / Official Or the HR’s Email Id / Certificate of Practice / GST registration and Filing Documents / Partnership-Deed / Shop act License / MOA & AOA
How To Improve CIBIL to get Personal Loan for defaulters:
Getting a personal loan is hard when you have a low CIBIL score or are on a CIBIL defaulters list. If you need a personal loan, you can do several things to increase your CIBIL Score.
Keeping in mind the few things mentioned above will improve your Score eventually.