If the credit score is bad, then you can take loan from these options

 

We always hear that banks or any financial company do not give loans if the credit score gets bad. A credit card is also not made due to a bad credit score. The loan is available on the basis of creditability of a person. Credit Information Bureau India Limited (CIBIL) gives you a score between 300 and 900 marks. It is decided on the basis of how much your previous credit card usage is, how do you keep your bank account, no check has bounced, existing loan, an existing loan without insurance, loan repayment and how many times you have loaned Or have applied for a credit card. The better your credit score, the cheaper the loan. At the same time, if the credit score is bad, then you will have to pay the price by paying more interest. First of all, know about the credit score.

 

A credit score is also known as the CIBIL score in a colloquial language. In India, it was first started by the Credit Information Bureau of India (CIBIL). In the beginning, money had to be spent to get it. But now you get it free every month. There are now four companies in the country that provide credit scores. These companies are Kriff High Mark Credit Service, Equifax Credit Service, Experian Credit Service and Trans Union Cibil Limited. You can get these four companies every month for free.

Let's know if your credit score has deteriorated, then what are the better options for taking a loan-

• The repayment capacity of the co-applicant or guarantor is also seen while approving the loan. Through this, you can get more loan and the interest rate can also be reduced. Actually, adding a co-applicant with higher credit score and better credit profile also reduces the risk of banks.

• Banks offer different loans at different credit scores. That is, some loans are available to those with higher credit scores, and some to those with lower credit scores. Therefore, you should search for applicants with low credit score and take a loan from them. The EMI of the loan will be decided according to the score given by CIBIL.

• Banks give the percentage of the value of a property in the form of a loan, it is called LTV ratio. The percentage that remains is called the down payment or margin. Many times LTV ratio is offered to them if the credit profile is not good. RBI has increased the debt to gold price ratio (LTV) till 31 March 2021. Increasing LTV means that customers will be able to borrow up to 90 per cent of their gold price from a bank or financial institution. Earlier this limit was 75 per cent.

• You can also apply for other secured loan options such as gold loan or loan against property. For this, you will have to mortgage some property. In these cases, the credit score is not given much importance. Gold loans are generally considered as collateral loans.