Strengthen Your Income Proof: Demonstrate a stable and reliable income source with documents like salary slips or bank statements. A higher income shows better loan repayment capacity.
Reduce Loan Amount Request: Apply for a smaller loan amount. Lower loan amounts are seen as less risky for lenders and might get approved with a lower credit score.
Consider a Co-applicant: Adding a co-applicant with a good credit score significantly improves your application's strength. Their creditworthiness reassures the lender.
Check and Fix Credit Report Errors: Ensure your CIBIL report is free of errors. Inaccuracies can bring down your score. Dispute and rectify any mistakes you find.
Get a Guarantor Onboard: A guarantor acts as a safety net for the lender. If you fail to repay, the guarantor becomes responsible. Choose someone with a strong credit score.
Negotiate with Existing Lender: If you have a good relationship with your bank, discuss a personal loan with them. They might be more considerate of your existing financial situation.
Explore NBFCs (Non-Banking Financial Companies): NBFCs may offer personal loans to borrowers with lower credit scores compared to traditional banks. However, expect higher interest rates.
Build a Credit History (if very limited): If you have limited credit history, consider getting a secured credit card and using it responsibly. Timely repayments will build your credit score.
Be Upfront About Loan Purpose: Clearly explain why you need the loan and how it will be used. This transparency can improve your application's credibility.
Compare and Apply Strategically: Don't apply to multiple lenders at once. Research and compare loan offers from different lenders to find the one with the best terms for your situation. Multiple applications can further decrease your credit score.