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My CIBIL Score is 690, Am I Eligible for an Instant Loan?


A very important factor for personal loan eligibility is having a healthy credit score. However, having a low credit score is not the end of the world. Yes, with a CIBIL score of 690 you can avail of an instant loan. Good CIBIL score is not the only deciding factor for the approval or rejection of the loan. It’s more likely that availing a personal loan with a low credit score will have challenges. Try not to get discouraged if your score is below the set benchmark in getting a competitive interest rate for a personal loan. You’ll find lenders who are willing to work with borrowers who have less than perfect credit score. It’s vital to remember that the number reflected on the credit score isn’t permanent, so use it as a motivation to make a positive change that will give it a much-needed boost


Why the CIBIL score is important for availing a Personal Loan? A personal loan is an unsecured loan, requiring no collateral of any kind to be pledged as  security. Lenders approving personal loans are highly concerned about their repayment  from borrowers. Hence, before sanctioning the loan to the applicant, the credit history  of  the  applicant  is  scrutinized  critically  to  avoid  any  kind  of  loan  default  in  the  future.  This is where the CIBIL score plays a role.  A  CIBIL  score  is  a  3-digit  number  ranging  from  300  to  900  that  speaks  for  the  credit  history of the borrower. The loan sanction amount greatly depends on how good your  CIBIL score is.


Ways to get through the loan approval with a low CIBIL score? Getting a loan approval with a low CIBIL score will require creativity on your part to get through it. Securing a personal  loan at an affordable rate of interest, using the traditional route might not be possible. So, here’s a few alternative ideas: Shop around – It is wise to not fall for the first offer that comes your way, which stands especially true if your credit isn’t  the best. Research lenders in your area as well as online. Brick and mortar banks have the overhead costs which is not  the case with online lenders thus making it a cheap option.  Find a co-signer – A family member or a friend with a good credit score and a solid financial standing who is willing to  co-sign your loan can be monumentally helpful. A co-signer taking the full responsibility of the loan repayment will  provide peace of mind to lenders. Consequently, this can help you qualify for a loan with an affordable interest rate.  Do not ask for a favour unless you’re certain you can fulfil the obligation. It will harm your cosigner's credit score. Offer collateral as security – Using collateral can be of help when you’re looking for a  personal loan with a low CIBIL score. Backing a loan with assets will be considered a low-risk profile by the lender.  Lenders can seize the collateral in case of default. This can help you qualify for a loan at affordable interest rates. You should proceed with caution while taking this route, as you’ll have to pay a high price in case of default in payments. Reducing the loan amount – All hope is not lost when you’re applying for a loan with a low CIBIL score. You may still be  able to apply for a personal loan of a slightly lower amount. However, the rate of interest rate may be on the higher side. Good Income – Having a handsome income makes the chances of loan approval better. Individuals showing additional  side-income can also benefit from it. It gives the lender a positive sign of loan repayment on time.


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Profile for Shruti Keshre

My CIBIL Score is 690, Am I Eligible for an Instant Loan?  

If you're looking to apply for a personal loan, one of the first things you'll want to do is check your CIBIL score. It’s more likely that a...

My CIBIL Score is 690, Am I Eligible for an Instant Loan?  

If you're looking to apply for a personal loan, one of the first things you'll want to do is check your CIBIL score. It’s more likely that a...

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