Is bad credit holding you back from securing a personal loan? Get ready to embark on a journey of financial empowerment as we unravel the path to getting an NBFC personal loan for bad credit.
When faced with a financial crunch, a personal loan can be a lifesaver. However, obtaining a personal loan can be challenging if you have a bad credit score. NBFCs are known to have more flexible lending criteria than traditional banks, making them a viable option for individuals with less-than-perfect credit.
In this blog, we will explore how to get NBFC personal loan despite having a bad credit score, and provide you with tips and considerations to increase your chances of approval.
Can I get a Personal Loan from NBFC with a Bad Credit Score?
A poor credit score falls between the range of 500 to 600. While having a bad credit score may limit your options, it does not necessarily disqualify you from obtaining a personal loan from an NBFC. Unlike banks, NBFCs are often willing to consider applications from individuals with poor credit histories. They consider various factors beyond your credit score, such as your income, employment stability, and repayment capacity. So, it is possible to get a loan from an NBFC.
How to Get a Personal Loan from NBFC with Bad Credit?
Now that you know you can get a NBFC personal loan with a bad credit score, let’s look at the tips to get one.
Research and Compare NBFCs:
Begin by researching different NBFCs that offer personal loans to individuals with bad credit scores. Compare interest rates, loan terms, and eligibility criteria to find a lender that suits your requirements.
Provide Accurate Information:
While applying for a personal loan, ensure that you provide accurate information about your financial situation. This includes details about your income, employment history, existing loans, and any other relevant information. Being transparent about your circumstances will help NBFCs assess your loan application more accurately.
Show a Stable Income:
One way to boost your chances of loan approval is to demonstrate a stable income. Lenders are more likely to consider your application if you have a consistent source of income. Provide proof of employment, salary slips, and income tax returns to showcase your financial stability.
Offer Collateral or Guarantor:
If your credit score is exceptionally low, offering collateral or a guarantor can help secure a personal loan. Collateral can be in the form of property, fixed deposits, or other valuable assets that provide assurance to the lender. A guarantor with a good credit history can also enhance your chances of loan approval.
Opt for a Lower Loan Amount:
NBFCs may be more willing to approve your loan if you opt for a lower loan amount. By borrowing a smaller sum, you minimize the risk for the lender, which increases the likelihood of loan approval.
Top NBFCs Offering Personal Loan
Here is a table showing top NBFCs offering personal loans at attractive interest rates and processing fees:
| NBFCs | Interest Rate (p.a.) | Processing Fee |
| Muthoot Finance | 14% onwards | Up to 3.5% |
| Tata Capital | 10.99% onwards | Up to 2.75% |
| Bajaj Finserv | 11% onwards | Up to 3.93% |
| StashFin | 11.99% onwards | Up to 10% |
| Faircent | 9.99% onwards | Up to 8% |
| Kreditbee | Up to 29.95% | Up to 6% |
| Navi | 9.9% – 45% | NIL |
| Money Tap | 13% onwards | NIL |
| Dhani Loans | 13.99% onwards | 3% onwards |
| Money View | 15.96% | Starting from 2% |
| Pay Sense | 16.80%-27.60% | Up to 2.5% |
| Early Salary | 24%-30% | Up to 2% |
| Home Credit | 24% onwards | Up to 5% |
| CASHe | 27% onwards | Up to 3% or Rs 1,200 |
| HDB Financial Services | 12%-31% | Up to 3% |
Note: The interest rates are subject to change, do visit the official website for updated rates.
Conclusion
Having a bad credit score does not mean that you are entirely ineligible for a personal loan from an NBFC. These financial institutions are often more flexible in their lending criteria, considering factors beyond just your credit score. By conducting thorough research, providing accurate information, showcasing a stable income, offering collateral or a guarantor, and opting for a lower loan amount, you can increase your chances of securing a personal loan from an NBFC for bad credit score.
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Frequently Asked Questions
Q: Can I get an NBFC personal loan with a bad credit score?
A: Yes, NBFCs consider factors beyond just your credit score, such as income and repayment capacity, increasing the chances of approval.
Q: How can I increase my chances of getting a personal loan from an NBFC with bad credit?
A: Demonstrate stable income, provide accurate data, consider collateral or a guarantor, opt for a smaller loan, and explore specialized NBFCs for bad credit borrowers.
Q: Will my loan be approved instantly with a bad credit score?
A: Instant approval may be challenging with a bad credit score, but NBFCs generally have faster processing times compared to traditional banks.
Q: Can offering collateral or a guarantor help secure a personal loan with bad credit?
A: Yes, collateral or a guarantor can provide assurance to the lender, increasing the likelihood of loan approval despite a bad credit score.
Q: Is it important to improve my credit score over time?
A: Yes, improving your credit score is crucial for better loan options and favorable terms.
Q: Can I get the Loan Instantly with a Bad Credit Score?
A: While NBFCs may provide faster loan processing times compared to traditional banks, obtaining an instant loan with a bad credit score can be challenging.
