Zero Cibil Score, Loan: The term used in banking language for a Zero Cibil Score is Minus Cibil Score. If your CIBIL score is low, the bank may still reject your loan application. Banks are unable to determine a customer’s trustworthiness because of their limited repayment history. They are reluctant to provide loans in such circumstances. If you also have a similar situation, we are informing you about a loan that the bank may approve quickly even with a low or poor CIBIL score.
How can the CIBIL score be reactivated?
Having never borrowed money or utilized a credit card means you lack a credit history, resulting in a credit score of -1. What individuals are commonly referred to as having a zero credit score. If the bank denies a loan with a CIBIL score of zero, how can the CIBIL score be reactivated?
How to take loan with zero score?
In this scenario, you can choose to borrow against a Fixed Deposit, also known as an FD. In this loan situation, banks do not verify your CIBIL rating. In this scenario, approval of the loan is granted regardless of a low or non-existent CIBIL score. When utilizing it, banks use your FD as a form of security or guarantee. This is an excellent method to raise the credit score of individuals in a negative score range. Once you borrow against your fixed deposit, the loan becomes active within the banking system. Following this, you can make repayments by paying installments promptly. Over time, your credit score will improve as you build a repayment history. You have the option to boost your credit score by utilizing a credit card and ensuring prompt payments. Once the credit score improves, it will be simple to obtain a loan from the bank.
The duration of the loan secured by your FD is determined by the maturity period of your FD. You must repay any loan taken against FD prior to the fixed deposit’s maturity. Clarify that the loan acquired against a fixed deposit typically incurs an interest rate that is 2% higher than the fixed deposit’s interest rate. However, there are no processing fees associated with this loan. The range of the CIBIL score starts at 300 and goes up to 900. The higher your score, the more accessible the loan will be and at more favorable interest rates. In general, banks consider a score of 750 or higher to be favorable.