A low CIBIL score can become an impediment if you wish to get a loan sanctioned. Your application will either be unapproved or come with a humongous interest rate. Some might even advise you against taking a loan with a low credit score but taking a loan and repaying it on time can actually help you improve your CIBIL score on y2 mte com.
If you are stranded in a similar situation, you need not give up hope. When banks refuse to offer you a loan, you can always look for NBFCs for the same. Non-Banking Financial Companies are organisations that indulge in advancing loans, acquisition of stocks, bonds, etc.
You can easily get an NBFC loan without CIBIL as they have personalised offerings and extensive risk management frameworks that allow them to offer loans to individuals who have low CIBIL scores.
But before we move on to more about NBFC loan without CIBIL score consideration, let us look at what makes a good CIBIL score.
What is A Good CIBIL Score?
CIBIL score is a 3 digit number that indicates the credit history, rating and report of a borrower. The numbers range from 300 to 900. The higher your score is, the better it is. A score ranging from 300 to 650 is generally considered a bad one, while above 650 is considered a good score.
If you have a CIBIL score lower than 650, most banks would either refuse to grant you a loan or charge a higher interest rate. But you may get an NBFC loan without CIBIL report interfering with the conditions too much. Such a loan has several advantages we shall discover in the course of our article.
Reasons to go For NBFC Loan
Relaxed Eligibility Conditions
Such loans do not come with complicated and lengthy criteria, which means almost anyone can apply for personal loans. Even if you have a low credit score, you can apply by producing a sound career portfolio and a source of substantial income.
Loans from the Bank require you to go through a ton of paperwork. The bureaucratic processes involved can be quite frustrating. Whereas in the case of an NBFC loan without CIBIL score, you can do the same with minimal paperwork involved. Existing customers may not have to submit any document at all, depending on the company you are opting for.
Most of these kinds of loans can be applied for and sanctioned digitally. This digital process saves you much time. Banks are still very much reliant on hard copies and paperwork which can be inconvenient in case of emergencies. Therefore, always look for an institution that is capable of carrying out the entire function digitally.
If you are an existing customer, your loan will be approved in no time and in case you are new to the organisation, they will take minimum time to do the same. Once you fill out your KYC document and bank details, you will get the approval right away. Therefore, it works well for both new as well as existing customers.
Most NBFC loans are processed within a day after approval. This means a borrower can receive their money within 24 hours. The processing window for banks can be as long as a few weeks. Such loans work great for emergencies that require you to arrange the money quickly. Often businesses run out of cash in hand, which can prove to be detrimental. Cash in hand is important to deal with overhead expenditure and other expenses. You can always go for an NBFC loan without CIBIL score restrictions and get the fund immediately.
The same can be done for medical emergencies. Hospitals are often be strict about payments. A loan that can get sanctioned and processed in no time serves as a saviour.
Decent Customer Service
Banks are hardly customer centric. You shall barely find a branch that helps customers efficiently. Unlike banks, NBFCs have good customer support. Customer executives are always eager to help you out with any kind of query. You need not run to the bank every time you have a question or wish to raise a concern.
These companies often have a customer relations manager who is responsible for assisting borrowers throughout the process. You can ask for their help before, during and even after your loan has been sanctioned.
We all need some kind of loan at some point in time. While banks are the most popular options, they come with certain drawbacks. NBFC loan without CIBIL score restrictions encourages a large number of people to come forward and appeal for a loan in times of need. Most banks shut their doors on people who have a compromised portfolio, but NBFCs have much relaxed conditions, and almost everyone may be able to take a loan.