RBI Personal loan : In today’s time, people’s interest in taking personal loans is increasing. Due to which the Reserve Bank of India (RBI) is seen to be strict about personal loans. Now RBI is giving personal loans only to customers with good credit score.
Let us tell you that good credit score means such customers whose CIBIL score should be more than 750. RBI provides bank loans to such customers.
If you also want to take a personal loan and your CIBIL score is less than 750, then today we will tell you how you can take a subprime personal loan on a low CIBIL score.
How to get subprime personal loan
For this subprime personal loan, your credit score and ability to repay the loan are seen. This is different from traditional lending in which the loan section depends only on the credit score.
In subprime loan, instead of your credit score, the bank checks how your employment track record is. If the bank thinks that your employment track record is good, then the bank gives you a loan even if you have a bad credit score.
In this loan, the total loan is compared to your income using the debt-to-income ratio. If the ratio is high, you may have trouble getting a loan.
If you consistently pay your subprime loan on time, your credit score improves, but if you miss payments, it will decrease.
How to apply for a subprime loan
Taking a subprime personal loan is just like taking any other type of loan. First, choose a bank that offers subprime loans. Then choose a loan whose terms and conditions you can accept. Next, compare prices and interest rates and look at additional charges. Choose a loan that suits your budget.
Follow these conditions
Reduce the debt-to-income ratio
To get a personal loan, you first need to reduce your debt-to-income ratio. For this, you will first have to pay off your remaining loan and card bills in full.
If you repay your remaining loan, it may show you as a credit hungry borrower. Due to which you will not be able to take a new personal loan.
Also, your loan payment should not exceed 30-40 percent of your monthly income. Only then can you apply for this personal loan.
Improve your CIBIL score
If you borrow money from the bank without giving any guarantee like for a house or car etc. then the bank looks at your credit score. So that it can be known whether you are able to repay your loan or not.
Due to which you may face difficulties in getting your loan approved. Also, you may have to pay more interest for the loan.
Tell through income
When you apply for a personal loan online. So the bank checks how much your income is, so that it can be ascertained whether you will be able to repay the loan or not.
So it is important for you to tell from which sources you earn money. Such as your property, job or any other business. This will let you know whether you have enough money to repay the loan or not.
Do not apply for too many loans
Never apply for personal loans in too many banks. First of all, get complete information about the eligibility conditions of each loan. This will let you know whether you are eligible to take a loan or not?
To take a personal loan, your age should not be too high, your income should be more than Rs 25,000 and you should have at least 12 years of experience in this field.
