Get a Quick Personal Loan with Low CIBIL Score–5 Alternatives for Salaried Employees

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! There are several alternative solutions available to help you secure a loan and fulfill your urgent financial requirements. Here are 5 practical alternatives to get a loan despite having a low credit score.

On the other hand, if your credit score is high, it's important to avoid common mistakes that can negatively affect your CIBIL score. Understanding and preventing these mistakes can help maintain your high credit score, ensuring that you are eligible for better loan terms in the future.

Apply for Personal Loan in NBFC

If you're facing difficulty getting your loan approved due to a low CIBIL score, there is one ultimate solution: apply for a loan with Non-Banking Financial Companies (NBFCs). NBFCs are often more flexible in their lending criteria compared to traditional banks. If you're looking for the best banks for personal loans with a low credit score, they may not be your only option.

Many NBFCs are willing to approve loan applications from individuals with a CIBIL score below 700, making them an attractive choice for those struggling with low credit scores. However, do keep in mind that interest rates may be higher than those offered by traditional banks.

If you need quick access to funds, online application for salaried employees with a low credit score can be a convenient solution. The process is typically straightforward, and you can complete your application from the comfort of your home. By choosing NBFCs, you might find a suitable loan option to fulfill your urgent financial needs.

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.

Apply for  Small Personal Loan

If you are a salaried employee and your salary is credited to your bank account, you can easily apply for a small personal loan to fulfill your urgent financial needs. Many Non-Banking Financial Companies (NBFCs) offer small personal loans with low CIBIL scores, making it easier for individuals with less-than-ideal credit histories to access funds.

One great alternative is to apply for a small personal loan through platforms like Zetloan. With a streamlined process, you can quickly apply for a small personal loan online, without the need for extensive documentation or long waiting periods. Whether you're looking for a quick solution or facing a financial emergency, how to apply for a small personal loan online has never been easier.

Zetloan provides an accessible platform for anyone looking to secure a small loan with ease, even with a low CIBIL score.

Loan against Fixed Deposit (FD)

If you have a fixed deposit (FD), you can provide your FD receipt as security to obtain a loan. These loans are granted based on the amount you've invested in your FD, typically allowing you to borrow 85 to 90% of your FD amount. The best interest rates for a loan against fixed deposit are generally slightly higher than the interest earned on your FD, usually around 1 to 2% higher.

The tenure of the loan will be shorter than the duration of your FD, making it a convenient option if you need quick access to funds without breaking your FD.

If you're looking to apply online for a loan against fixed deposit, the process is often simple and requires minimal paperwork. Documents required for a loan against fixed deposit generally include your FD receipt, proof of identity, and proof of address. By leveraging your FD, you can secure funds quickly, often at a better rate compared to unsecured loans.

Apply for Gold loan

If your loan application is being rejected by banks due to a low CIBIL score, a gold loan can be an excellent option to meet your urgent financial needs. A gold loan is a form of secured loan where your gold acts as collateral, and even with a poor CIBIL score, you can still opt for this solution. You can receive a loan of up to 75 percent of the current market value of the gold you provide as security.

When applying for a gold loan, it's essential to look for the best gold loan interest rates to ensure you get a competitive offer. The interest rate on gold loans may vary based on the lender and the value of your gold. Additionally, you should be aware of the documents required for a gold loan, which typically include proof of identity, proof of address, and the gold that will be pledged as collateral.

If you're in urgent need of funds, you can opt for a quick gold loan for urgent cash needs. The application process is generally straightforward, and since it's a secured loan, approvals tend to be faster than unsecured loan options.

securing a personal loan for salaried individuals with a low CIBIL score can be challenging, but it's not impossible. There are several alternative loan options available, including secured loans, loan against fixed deposits, gold loans, and NBFC personal loans. These options offer more flexibility and approval chances, even for individuals with less-than-ideal credit histories.

While personal loans for low CIBIL scores may come with higher interest rates, choosing the right lender and loan type can help you meet your financial needs promptly. Be sure to explore the best available solutions, understand the documents required for the loan, and select the most suitable option based on your urgency and financial situation.