How To Get A Wedding Loan Despite Having Low CIBIL Score?

Do you have a wedding at your home and need extra finances to help with the expenses? Taking a marriage loan would strike your mind to curb the situation. But with a low CIBIL score, you may not be given the loan or receive high quotations for personal loan interest rates. It has been a common problem for many people.

And the solution is discussed here. Most of the people unable to get a personal loan for wedding due to having a low CIBIL score. Even if you have a low CIBIL score, some strategies can help you secure the wedding loan for an affordable interest rate.

Understanding CIBIL Score

Your CIBIL score is your credit score assigned by TransUnion CIBIL that all lenders consider before approving your loan. It is a 3-digit number between 300 and 900, and a higher number means a better score. If your CIBIL is above 750, it is impressive, and lenders generally do not deny loans for such applicants.

However, a score below 599 is poor. The chances of securing a loan with a low score are less, and in most cases, credits get rejected. Some disadvantages of a low CIBIL score are –

• Higher rate of interest 
• Increased chances of loan rejection 
• Difficulty in beginning your own business
• Not securing a dream job

Getting Loan With Low CIBIL Score

If your credit score is below 599, you can employ the following strategies to get a marriage loan. 

Present Records Of Timely Repayments And Stable Income 

Your CIBIL score might below if you have defaulted on previous EMI or loan repayment. If you plan to take a loan, consider making timely payments on your outstanding debts like utility bills, loan EMIs, credit cards, etc. and maintain your CIBIL. 

Moreover, lenders consider your current salary, income sources, and similar factors, along with your CIBIL score. If you have received an increase in your salary, acquired an additional income source, or received an annual bonus, you can present those documents to the lending institution. This way, even if you have an unimpressive credit score, the lender may offer you a loan, considering your improved financial situation will allow you to repay the credit on time.

Apply For The Joint Loan Or Get A Guarantor 

You can get loan approval with a guarantor or co-applicant even if your CIBIL score is low. The only catch is that the guarantor should have a high credit score and good credit history. It is because a lender is generally more inclined to help such applicants with a lucrative deal on their loan amount. Instead of high personal loan interest rates, you may get a low price quote.

Opt For A Low Loan Amount

If you visit a lender with a poor credit score and ask for a considerable loan amount, you will be considered a risky customer. Try opting for a lower loan amount instead. Then, repay it regularly to improve your credit score. Once you win the lender's trust and impress them with an increased credit score, you can apply for a larger loan when the wedding date arrives.

Go For A Secured Loan

A privately-owned property or valuable assets can act as collateral for securing the loan repayment to fulfill the wedding expenses. Find a lender who can offer a loan to personal loan for low CIBIL score to the people if they apply for mortgage-based loans.

Conclusion

CIBIL score is an essential factor that decides how much loan you would get, the rate of interest, and your creditworthiness. A low credit score means increased chances of getting the wedding loan rejected. But by using the strategies mentioned above, you can secure the loan and quickly meet the wedding expenses.