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Can I Get Business Loans in Hyderabad with a Low CIBIL Score?

Author: Anil Sinhaanni
by Anil Sinhaanni
Posted: Feb 24, 2022

There are a lot of assumptions and differences of opinion around getting loans when you have bad or low CIBIL scores. Where different people have different opinions on how a bad credit score impacts your profile and makes it impossible to borrow from banks in the future, it can be said that it is definitely challenging but not impossible. Yes, there are chances that you can get Business Loans in Hyderabad even if you do not have a good credit history. It will definitely not be that easy to convince the lender, but it is not impossible either. In case you work with an MNC where you have job security and a decent salary, It is possible that the lender will consider your application but you would have to pay comparatively higher interest rates.

For quick information, the CIBIL score of an individual falls in the range of 300 to 900 where 300 is the lowest and 900 is the highest score that makes you the most creditworthy individual and eligible for any loan of a bigger amount. In case your credit score is above 750, still you are considered to be a reliable borrower as per the banks. However, an individual with a credit score less than or equal to 550, makes himself/herself a high risk borrower, and hence, the chances of getting a loan decrease to a great extent. In this case, even if you get a loan, it will be at high interest rates and that too after submitting a lot of proof to prove your creditworthiness.

How to get a personal loan when you have a Low CIBIL Score?

  1. In case you have a low credit score, then it becomes more important to prove to the bank that your income can support your loan repayment easily. Here, you can share the documents of your recent salary hike, also if you work on any freelancing projects apart from your job or have any extra income, you can share that evidence too. These additional incomes make your application even stronger to consider.
  2. When your credit score is already spoiled because of whatever reasons, it actually becomes difficult for you to get a business loan, but you should try to get the loan by applying for lesser loan amounts. Applying for a lesser amount not only helps you to get the loan easily but also when you repay the loan on time, it increases your CIBIL Score. This is a great way to rebuild your goodwill and credit profile.
  3. If you want a quick and easy Business Loan in Hyderabad, but have a Low CIBIL score, it is suggested to either apply for a joint loan with a family member or bring a guarantor into the story, this makes it easy to get the loan for sure.
  4. Always check whether your credit report is correct or not and do not depend on just the score. In many cases, even if you repay your existing or past loans, your profile doesn’t get updated and your CIBIL score doesn’t improve. In case you find any such fault in your profile too, get these errors sorted from the previous lenders.
  5. If you were not acting as a borrower, or we can say you have an inactive credit period for a long time, which results in no credit score in your report, in such cases, you can talk to the lender. If you can convince the lender why you were not active, then there are possibilities of getting a Business Loan in Hyderabad.
It can be said that all lenders have different policies for providing loans. Ultimately, the goal is to convince the lenders. If you can meet the requirements of the lenders or can convince them with your capability to repay, then it is definitely not impossible to get a loan even with a Low CIBIL Score.
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Author: Anil Sinhaanni

Anil Sinhaanni

Member since: Apr 08, 2021
Published articles: 55

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