One of the main requirements for availing a loan is a good CIBIL score. Lenders consider the rating to evaluate your creditworthiness as a borrower. Generally, a score of 750 or higher is considered worthy enough for loan approval. So, if you apply for credits like an unsecured personal loan, a healthy CIBIL rating increases your chances of getting approval. So, your credit score is one of the significant personal loan eligibility criteria you need to fulfill.
Naturally, if you have a low credit score, it can be difficult for you to avail a loan. However, during emergencies, you can still avail guaranteed approval loan with a credit score below 750.
A guaranteed approval loan is one type of personal loan that you can apply for, even with a weak credit score. Offered by many financial organizations, these loans are becoming more popular among first-time borrowers and credit defaulters.
How To Get A Guaranteed Approval Loan Even With Poor Credit Score?
Fulfill only some basic requirements if you are looking for a guaranteed approval loan. Different lenders might ask you to meet specific requirements, but some common ones include –
- Your age must be between 23 and 58 years.
- You should be a residing Indian citizen.
- You must be a working individual, and You can either be a salaried person working for an MNC or a public/private sector, or a self-employed individual.
The credit score is not essential when you are applying for such credit. Instead, a lender considers your monthly salary to evaluate your debt repayment capability.
Also, your FOIR or Fixed Obligations to Income Ratio comes into play when you seek a low-interest rate personal loan with guaranteed approval. It is the ratio between your monthly income and expenses. A borrower should restrict his/her obligations including existing loan EMIs or other types of payments to only 50% of his/her income. Your chance of availing a loan will decrease if your FOIR crosses this threshold.
Calculate your EMIs and other details before applying for the credit to understand your eligibility even if you have a poor CIBIL score. You can use an EMI calculator online to determine the amount you have to pay every month.
How To Apply For A Guaranteed Approval Loan?
Many lenders in the market offer a guaranteed approval loan at easy-to-meet criteria. Once you shortlist someone who fulfills all your requirements, you have to fill up their application.
Most lenders offer online application to streamline the entire process. You also need to submit essential documents like KYC documents, proof of residence, proof of income, bank account statements, etc. along with. After they have verified all the documents, they will sanction the finances, and disburse the amount within 24 hours.
The Benefits of Availing Such Credit:
With the help of a guaranteed approval loan, you can tackle your financial emergency, and improve your CIBIL score as you successfully repay it. This will help you to avail any other future credit effortlessly. Also, you can discuss your tenure with the lender before applying for the loan, which will give you flexibility on repayment.
With flexible tenure and affordable interest rates on a personal loan with guaranteed approval. It is considered an ideal financial product to avail when you have a bad CIBIL rating. You can also enhance your creditworthiness once you repay the loan on time.