A personal loan can be availed even with bad credit in India. These are usually for people with low credit score or no credit history. These loans are generally secured loans. You should pledge collateral or security, such as property, gold, financial securities, etc. to avail a loan.
What are the things to keep in mind when you avail a personal loan with bad credit?
Some key points to keep in mind when you avail a personal loan are:
- You should research and compare various lenders. Then, choose the one who gives you the best interest rate.
- Check your credit score and credit report to ensure that you are eligible to apply for a personal loan. Also, verify the other eligibility criteria. Otherwise, your application may get rejected.
- Read and understand the terms and conditions for personal loans with bad credit.
- Assess your repayment capability before you apply for a bad credit loan.
How can you increase your chances of getting a bad credit loan?
- Ensure that the lender understands that you can repay your EMIs. You need to prove that you can pay them on time.
- You can provide collateral or security. By doing this, you are increasing your chances of getting a loan, since lenders feel confident to give loans to people who offer collateral. In case of default, they can sell the collateral and redeem the loan amount.
- You can approach a co-applicant who has a good credit score.