When it comes to a loan, the CIBIL Score is very important. If your CIBIL score is extremely low, banks often deny you a loan since they view the CIBIL score as an indicator of trustworthiness. This demonstrates the way your previous repayment record has been. However, if you find yourself in urgent need of cash and the bank declines to provide a loan, where will you obtain the funds? Here are 5 options that can help you secure funds during challenging times.
Shared loan
If your earnings are adequate, you can opt for a joint loan or have someone act as your guarantor if the CIBIL score is not high. If your co-borrower or guarantor possesses a strong CIBIL score, you can readily obtain a loan. One benefit of this is that if your co-applicant is female, you may also receive a reduction in interest rates.
Gold Loan
If you possess gold, you can also secure a loan using it. Gold loans fall under the classification of secured loans. You may obtain a loan amounting to 75 percent of the existing value of gold. There isn’t a lot of documentation, and your CIBIL score is not considered. This loan is provided by securing it with your mortgage.
Salary Advance Loan
Certain companies provide loans as salary advances. This loan may reach three times your salary. One benefit of a salary advance loan is that it requires minimal documentation. An advance salary loan is similar to a personal loan. You acquire it effortlessly and can pay it back in regular intervals via EMI. Typically, it must be returned within 15 years.
NBFC
If your CIBIL score is poor, you are not able to get a loan from the bank and you are in dire need of money, then you can apply to NBFC. Here you can also get a loan with a low CIBIL score. But the rates of interest can be higher than the bank.
Loan on Deposit Schemes
If you have an FD, or have invested in schemes like LIC or PPF, you can also take a loan against them. In this, you are given a loan based on your deposit. A fixed time is given to repay this loan. If your PPF account is at least one financial year old, then you can apply for a loan. Loan facility can be availed for five years, after which partial withdrawal facility is available.
