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Tata Capital > Blog > What’s Trending > How Can CIBIL Defaulters Submit an Application for an Instant Loan?

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How Can CIBIL Defaulters Submit an Application for an Instant Loan?

How Can CIBIL Defaulters Submit an Application for an Instant Loan?

When a financial crisis hits you, applying for an instant loan is the best way to get out of it. However, if you have an extremely low credit score, you might think your chances of getting an instant loan are bleak.

But, while it can be difficult to avail of one, it is certainly not impossible to get an urgent loan for CIBIL defaulters. Following the tips below, you can get closer to getting an instant loan online.

But, first things first. What is CIBIL, who is considered a CIBIL defaulter, and what challenges do they face? So, let's dive right in.

What is CIBIL and Who are CIBIL Defaulters?

CIBIL stands for "The Credit Information Bureau (India) Limited." It is one of four credit information companies that store credit information about individuals and businesses. The company has a "CIBIL score" that represents the individual's health to repay the loan. This score has a range of 300 - 900. The closer the score is to 900, the higher the chances of getting approval for the loan.

While there is no one definition of a "CIBIL defaulter," you can consider one to be a CIBIL defaulter if they have a score less than 600. Usually, people who don't repay loans on time and default on other assets have a score of less than 600. The credit score is also adversely affected if you apply for multiple credit cards or even multiple loans within a short period.

So, how do urgent loans for CIBIL defaulters work? What must such people do to increase their chances of getting a loan? Let's find out in the next section.

Methods to Secure Urgent Loan for CIBIL Defaulters

Lenders might be apprehensive about offering urgent loans to CIBIL defaulters, so you must consider a few things to increase your chances of getting a loan. 

These are some options available to get an urgent loan for CIBIL defaulters.

#1. Apply with a co-signer 

Your chances of getting a loan increase drastically when you apply with a co-signer or guarantor with a high credit score. Since they have a higher credit score, it minimises the risk of your application being rejected when you apply for an instant loan online.

#2. Borrow at higher rates of interest

As you have a poor CIBIL score, lenders will not entertain offering loans that easily. However, they can offer loans at higher interest rates to offset the risk. So, if you can afford a higher interest rate, then certain lenders might be able to help you.

#3. Use collateral to apply for loans

If you have any physical assets, you can use them as collateral to apply for loans. As this gives security to lenders, they will be more open to offering loans. However, it is essential to note that they may seize the property if you fail to repay the loan, so you should exercise caution.

Now that you know the options to avail of an urgent loan for CIBIL defaulters, the next step is to see the application process. 

#4. Try to improve your credit score

Ultimately, your credit score is one of the most important parameters in availing of an instant loan online. If you have an existing debt, try to repay the loan on time to improve your chances of getting a higher credit score. This will help you have a better chance when you apply for a new loan.

#5. Explore other alternative options

If you have tried other options, and nothing seemed to work, you can try going traditional. You can explore alternatives such as peer-to-peer lending, where you can ask for money from an acquaintance or friend with informal arrangements.

How to Apply for an Urgent Loan for CIBIL Defaulters Online?

Here's a step-by-step process of how to get urgent loans for CIBIL defaulters online.

#1. Research the lenders offering loans for CIBIL defaulters

Due to low credit scores, certain lenders may not offer urgent loans to CIBIL defaulters. But that doesn't mean that every lender is against providing loans to them. That's why you must research properly to see which lenders offer loans and which don't.

#2. Check the eligibility criteria

Once you know the lenders offering loans to CIBIL defaulters, the next step is to see what criteria they have set. But be aware that since you are applying as a CIBIL defaulter, there may also be other criteria, so look carefully. 

Also, check for their interest rates, tenures, and other important terms and conditions you find necessary.

#3. Gather all the documents

Based on the eligibility criteria, the lender will have a set of required documents you must submit. Ensure to collect all of them and keep them updated to the latest date and address.

For instance, your ID proof, such as your passport, might need to be updated to its latest address, so ensure you have them corrected.

#4. Submit the application online

Once you have all the required documents, go to the lender's website and fill out the application form. You will be required to fill in details like your name, address, loan needs, etc.

#5. Await verification

Upon filling out the application, upload your documents. After this, the lender will verify your application and submitted documents. Once they are satisfied, they will approve your loan application. If not, you'll have a list of reasons to check for resubmission.

The Bottom Line

CIBIL scores are a crucial aspect of modern finance. Lenders depend on this number to ascertain an applicant's creditworthiness. While urgent loans for CIBIL defaulters are still attainable, boosting your score is always a good idea.

Basic steps to increase your CIBIL scores, such as paying your loans on time and avoiding taking more than you need, can help immensely. This will also help you get an instant loan online without much trouble.

So if you are looking for an instant loan, why not try Tata Capital? We offer loans at competitive interest rates with minimal documentation. Furthermore, within four simple steps, you will get the necessary funds in no time.

Visit our website today and avail yourself of an instant loan!

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