A CIBIL score is a three-digit number ranging from 300 to 900 that reflects your creditworthiness in India. It is calculated based on your credit history, including your repayment behavior, credit utilization, types of credit, and the length of your credit history. A higher CIBIL score indicates good creditworthiness, making it easier to obtain loans and favorable interest rates.

In case your loan application is rejected by banks due to your Low CIBIL score, don’t worry we can have 5 alternative solution to secure loan to fulfill your urgent requirement. 

Apply for loan in NBFC

In any situation if banks rejecting your loan application due to low CIBIL score then there can be one ultimate solution that is apply loan in NBFC to fulfill your urgent financial needs. Applying loan on NBFC can be an option. Non-Banking Financial Companies (NBFCs) often have more flexible lending criteria compared to traditional banks. Many NBFCs consider applicants with CIBIL scores below 700. However, be mindful that interest rates may be higher than those offered by banks.

Joint Loan Application

If your CIBIL Score is not favorable to secure a loan amount, you can apply with your co applicant or you partner. If you found that your partners CIBIL score is higher than you can consider a joint loan application as an alternative solution. Additionally, you can add a guarantor to process the loan application easily. But the guarantor should have a strong credit score.

 Small Personal Loan

If you are a salaried employee and your salary credits to your bank account then you can apply for Small personal loan. There are so many NBFC which are providing small personal loan to fulfill your urgent financial need. Applying on Zetloan for small personal loan can be an alternative solution.

Loan against Fixed Deposit (FD)

If you have a fixed deposit (FD) you can provide your FD receipt as a security to obtain the loan. These loans are granted based on the amount you have invested on your FD. You can get 85 to 90% of your FD. In this case you’re the tenure of the loan will be less than your FD duration and the rate of interest will be 1to 2% higher than the interest earned by your FD.

Gold loan

If your loan application rejecting by Banks for low CIBIL Score then Gold Loan can be an Option to get money for your urgent need. A gold loan is a form of secured loan where, despite a poor CIBIL score, you can opt for this option. In a gold loan, your gold is used as collateral, and you can receive a loan of up to 75 percent of the current market value of the gold you provide as security.