(Published on 25-Dec-2019)
Most of the Banks or NBFCs are lending Home loans or Personal loans to the borrowers based on their Credit score. In India, bureaus such as CIBIL, CRIF-High Mark, Equifax and many more gather data and score individuals which can be used by financial institutions. CIBIL is the premier scoring bureau used by Indian institutions. The better the CIBIL Credit score, the brighter the chances of getting loans. But, the persons, with low or bad credit score, need cash then what are the opportunities available? Do they need to depend on private loans from third persons for higher interest rates?

What is Credit Score?

Whenever one needs to avail a loan, the Banks and NBFCs do a background check on the borrower to ascertain if the customer is capable of making the payments and clearing their loan. CIBIL (Credit Information Bureau Limited) score is a number in the range 300 - 900.



Higher the Credit score number, better the chances of getting a loan and also at a better interest rate. But the problem here is, the CIBIL score is calculated only when you take any loan from the financial institutions, or you have a credit card. If any person had never even taken a loan or a credit card, then his CIBIL score may not be available and it is difficult to the customer to get a loan.

How to Get a Loan with Low / Bad Credit Score?

The financial Institutions like Banks or NBFCs will lend the loans to the customer based on their credit scores only. But, with the advent of Technology and the Finance merging, getting a loan with bad credit score is not difficult. There are many platforms mushrooming in India to provide loans to poor credit score holders.

Best Websites for Personal Loans with Low / Bad Credit Score:

1. CREDY.IN:

Credy.in is one of the good website to provide quick personal loans for all your needs. Be it your Educational loans, Credit card refinancing to emergency loans or loans for any other personal purposes, the Credy.in will provide loans with a duration of 3 to 12 months and amount up to 1 Lakh. The interest rates are varies from 1% to 1.5% per month based on your CIBIL score. They are assuring lending money in 24 Hrs with reliable services. The minimum Monthly salary of a borrower should be Rs. 15,000. Currently they are operating in Bengaluru, Chennai, Hyderabad, Mumbai, Pune and Thane.

2. AFINOZ.COM:

AFINOZ.COM is an online financial marketplace for customized rate quotes on loans and investment products in India. The company is owned by DS Finworld Pvt. Ltd. Their objective is to make personal financial decisions easy, seamless, and transparent for customers. They designed a system that ensures faster processing and quick disbursal of the loan. Afinoz leverages state-of-art technology to build paperless solutions in the field of finance.

3. LENDBOX.IN:

Lendbbox.in is a P2P platform that provides personal loans to the low or bad Credit score borrowers. With P2P lending, you can avail quick personal loans or lend money online to earn great returns. Lendbox is India's leading peer to peer lending marketplace that connects high quality creditworthy borrowers with smart lenders online. Peer to peer lending or P2P Lending, is the practice of borrowing and lending money directly through an online platform like Lendbox, making it affordable to get loans online compared to banks. Through peer to peer lending, Lendbox is poised to change the way India lends and borrows.

4. LENDENCLUB.COM:

This is also a P2P platform that enables individuals to borrow and lend money with out any intermediaries. Usually, a person who is looking to invest (Lender) his/her money lends it to another person (Borrower) who is looking for a loan. This is where Peer to Peer Lending platforms like LenDenClub come into the picture. They will support you with almost everything; from paying your problematic credit cards to arrange a vacation for the family; from family functions to your home renovation; from the purchase of used car/ new bike to managing a medical emergency. Select your suitable purpose of the loan and get going with India’s leading Peer to Peer Lending Company. At LenDenClub, they have various loan products to offer you a loan. You can easily apply for a loan amount starting from Rs. 5,000 to Rs. 500,000. Interest usually varies between 12% to 35%. If you have a strong credit profile, you may get a lower interest for your InstaLoan.

Things to Remember Before Applying Personal Loan:

1. When you have a large Credit card bill and paying huge amount of interest rates, then it is better idea to go for quick personal loan  services from the above websites.
2. When you want to provide good education to your children which is also costly, then convert large school, college or coaching fees into EMIs. Renew EMI option when needed using above mentioned websites.
3. When any emergency need like Medical treatment, surgeries or any other urgent needs, then it is advised to go for quick personal loan options from the above websites. 
4. Most of these websites are offering loans based on your job and monthly salaries. Your minimum monthly salary would be Rs. 15,000 in most websites.
5. Many websites are offering rate of interest varies from 1% to 3% based on your Credit score, Salary and the Company.

Conclusion:

With the low or bad credit score, it is very difficult to get personal loans from Banks or Financial institution. Hence, we need to look for the websites mentioned to avail the emergency personal loans. Though taking Personal loans is an expensive option, but in certain scenarios it is still good option to avail loans to get rid of from the expensive loans or debts.