The need for money can arise at any time, and the lack of it can be an impediment to our way of living. Finding resources to cater to financial requirements aren’t very hard these days, thanks to banks offering a plethora of loans. While the process of availing a loan has become easier, getting a loan isn’t a guarantee, for banks do a thorough check before signing that cheque. One resource which almost every banks relies on is the CIBIL score of an applicant, with a good score resulting in quicker approval while a bad score could see an application getting rejected.
A lot of us come across the term CIBIL defaulter when we search for information on the internet, making us wonder about it. While it is common to come across loan defaulters (people who avail loans and are in no position to repay them), the fact is that there is NO SUCH TERM as a CIBIL defaulter. CIBIL only maintains the credit history of individuals, with no default list in place. Individuals who feel that they are on the CIBIL defaulters list can breathe a sigh of relief as there is no such list and banks do not rely on any such list when it comes to granting or denying a loan.
The major concern one can have with their CIBIL report is restricted to errors in the report, which can be rectified by contacting CIBIL.
As mentioned above, the term CIBIL defaulter does not exist in the books of CIBIL and individuals should know that this has no bearing on their personal loan application. What can affect an application is the score, with it being hard for people to get a loan if their CIBIL score is on the lower side. So in order to truly understand the concept, we will need to rephrase the question, asking “Can individuals with a low CIBIL score get a loan?”
The answer to this question is yes, people can get a personal loan even if they have a low CIBIL score or do not have a CIBIL score altogether.
While banks generally look at the CIBIL score of an applicant before sanctioning a loan, individuals who have a low CIBIL score or do not have a CIBIL score needn’t worry, for it is still possible for them to get a personal loan. Here are some tips one can use to ensure that the CIBIL score doesn’t come between them and their financial dreams.
Getting a loan isn’t impossible in today’s world, but having misconceptions about certain terms like CIBIL defaulter can hold one back from living their dreams. Clarity, focus and some research can ensure that your financial requirements are met without hassle.