Personal Loans For People With Bad Credit Or No Credit


What do you do if you need a Personal loan with bad credit or no credit? What's the best deal you can get? What is the maximum amount and tenure the banks will offer you? Is there a way you can benefit from the rate cuts as well?

Here the Deal:

CIBIL data says 80 percent of the loans that get approved have a score above 750.However, credit score is not the only parameter which lenders look at for approval and deciding the interest rates.

The difference in the interest rate paid by someone will vary depending on the product (secured or unsecured loan), size of the credit and the payback tenure. The difference will be bigger in case of unsecured loans than secured loans.

Your income source and employer also makes a difference. For instance, even a mainstream bank like HDFC may overlook a credit card default in the past if, say, you are right now work for a big MNC. However, you will still have to pay a slightly higher rate than someone with a good score. In addition to the credit default, say, the person doesn't have a stable income and are self-employed, the rate can go up to 19 per cent and you will have to approach an NBFC

It is important note here that a person with no credit history will be treated differently from a person with credits defaults as the reason of poor score.

If your score is low because of default then chances of getting a loan is lower. But if the score is low because of less amount of loan taken or because credit history is relatively recent then you can still get the loan.

Tips To Negotiate If You Have Bad Credit Or No Credit?

Do not apply for loans if you have a CIBIL score less than 650. This will have further negative effect on your score. Every time you make a loan enquiry, lenders will pull out your credit report and all these requests get registered. Too many enquiries within a short time can has a negative effect on the score as well as makes lenders sceptical. Start with a good NBFC rather. "NBFCs target business is the segment that mainstream banks won't entertain. You have better chances of cracking a deal with them.

If the reason for your bad credit is default of any account. It’s better to contact a professional credit repair company and find out the solutions for how to improve your credit. After removing all the negatives make sure all your other credentials are in order. "You should have a stable job in a top-rated company, keep all your ITRs in order. They might prefer a candidate who has been living at your current residence for at least 2 years. It helps if the default is at least 24 months old and you are applying for a secured loan. If you are looking for an unsecured loan like a personal loan some banks, on mandate, want you to have an existing relationship with them. If you have had a healthy relationship, it will help you negotiate better.

Tips To Get Personal Loan With Bad Credit

  • Choose for Secured Personal Loan
  • Show your High Salary
  • Get loan in the name of another person in your family having a good CIBIL score
  • Get a Personal Loan for Bad CIBIL score from private companies/ NBFCs

Choose for Secured Personal Loan: You can keep your assets, fixed deposits, equities, securities or even gold as collateral with the bank. And they will offer you the Personal Loan for Bad CIBIL score without even checking your CIBIL score.

Show your High Salary: There might be chances that previously due to money constraints you had default the payment but as now your income is very high. You can discuss this with the bank. They will verify your annual income proof and grant you a loan.

Get loan in the name of another person in your family having a good CIBIL score: For e.g. if your wife had taken any loan in the past and has a good repayment history with a good CIBIL score then get a loan on her name.

Get a Personal Loan for Bad CIBIL score from private companies/ NBFCs : Many organizations also offer personal loan without verifying your CIBIL score. But in return they charge very high interest rate. So this is another way to get a personal loan.

How To Get A Loan Even With Bad Credit Or No Credit?

It is hard but it's possible to get a loan when you have a bad credit. The key is to make smart choices as a borrower and to start on the path to rebuilding your credit. It may feel overwhelming, but with some planning you can get the money you need and get control of your finances.

Here Are Some Ways To Understanding Loans:

Learn what is the difference between Secured and Unsecured Loans: A secured loan is one that's backed up with collateral (a home, car or property, for example.) On the other hand, an unsecured loan does not have any collateral behind it, so they're riskier for lenders to make and therefore come with higher interest rates. Also known as personal loans, unsecured loans are primarily small amount loans used to cover home improvements, small purchases (computers, Electronics items, two wheelers) or to cover unexpected expenses.

Predict a higher interest rates: The charges you pay for a bad credit score comes in the higher closing costs, processing fees and interest rates. A borrower with the excellent credit score will be paying a lower closing cost and interest rates. It is simple higher the risk: higher the interest rates.

Understanding The Importance Of Cibil Score:

Learn how your CIBIL score is calculated: While each credit information company has its own proprietary algorithm to calculate an individual’s credit score, the most important elements of the score composition are centric around the loan payment behaviour of the individual. Your CIBIL Score is calculatedbased on the information in the “Accounts” and “Enquiry” section of your CIBIL Report. CIBIL scores are calculated based on various factors such as your payment history of loans and credit cards, number and type of loan and credit card accounts, length of your credit history, outstanding debt and many other factors.

Key Factors That Determine Cibil Score Calculation:

  • Credit History (30%)
  • Utilization of Credit (25%)
  • Duration, Type And Defaults (25%)
  • Credit Enquiry (20%)

Learn how your CIBIL score can impact your loans: Our credit has a direct impact on whether or not you are eligible for a loan, as well the amount of interest charged on the loan. Lenders will examine your credit score to determine if you are a good risk and likely to actually repay the loan. To get a loan and good terms, you'll want a good credit score. If you have a bad credit score, see what you can do to improve your credit before taking out a loan.

How Can You Improve Your Bad Credit By The Help Of Cibil Consultant?

CIBIL Consultant and CIBIL Clearance services are particularly valuable when:

    • The negative products in your credit report are as a result of accounting, reporting or any other error committed by creditors, credit bureaus or collection agencies. Genuine errors may be struck off from the reports smoothly once you go through the correct procedures with the CIBIL Consultants.
    • CIBIL Clearance Agents are superior at identifying errors that can't be verified. If any item inside the report can't be backed up by documentary proof, it needs to be removed.
    • This loophole may be employed by CIBIL Consultant to improve your score.
    • Some lenders are willing to negotiate with CIBIL Consultantrepresentatives if there are any Pending amounts to be paid of their Customers.
    • A CIBIL Consultant or a CIBIL Clearance is an effective alternative for you personally when you possess a lower credit score. They're going to take the required steps at removing any inaccurate details out of your credit report that will sooner or later enhance your credit score


At Millennium Credit Solutions, we believe that life is easier with excellent credit.
We have a dedicated staff devoted to assisting you with your future financial needs.
We provide advice and information on how to best manage your current credit to maximize the impact to your qualifying ability.



Call now for free expert advice: +91 95350 61366

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