Loan with Low or Bad CIBIL (Credit) Score - Hindi - YouTube

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Namashkar, my name is Mukul & welcome to Asset Yogi

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In this video we are going to talk about, what are the options of taking a loan if your CIBIL Scores are low?

I have already made 4 videos on the CIBIL Score, in the 1st video we have seen what are the basics of CIBIL Score

In the 2nd video, we have seen how we can see our credit score for free/check our CIBIL Score, online?

In the 3rd video, we get to know about how we can calculate our CIBIL Score & in the 4th video

We have seen, how we can improve our CIBIL Score if it is low

You can watch all 4 videos from the links given below

Many subscribers say, Their CIBIL Score will be improved in 1-2 years but their loan requirement is urgent

What we can do in this is,

In this video, I will give you 9 tips, if you have any home loan, personal loan, or education loan requirement

Then how you can do it, what will be the alternatives,

even if you have a low CIBIL Score then there can be some options available & you can take a loan

Watch the video till the end, now we should move towards the blackboard

What will be the effect of CIBIL Score on the capacity of taking a loan

Here are the statistics, here it is shown how much loan accounts fall in which %

19% loan accounts fall in the 815-900 range, the CIBIL Score are from 300-900

20% of loan accounts fall in 800-824 range, 21% fall in 775-799 range, Another 21% fall in the of 700-774

Only 19% of loan account falls in the range of 300-699

As you can see that only few loans are issued if the score is between 300-699

In the case of a bank

They disperse about 80% of loan to the score of 750 or higher

That's why we have to maintain a good credit score

If your score is 800 or more then most banks and NBFC's provides loan to you easily

At best interest rates

suppose the lowest home loan interest rate is 8.5%

you can avail of it easily if your score is above 800

If talk of 700-799 range, Most banks and NBFC's offer loan to you

But interest rates maybe a little bit higher

0.25-0.50% or max 1% higher interest rate

You can get interest rate upto 8.75 to 9% at the place of 8.50%

Now if score is 775-799

Then it is concerning

Most of the banks and NBFC's does not offer loan to it

Some of the banks and NBFC's offer loans

But at higher interest rates by 0.5-2%

If you getting a loan at 8.5% with a score of 800

Then

you can get a loan of interest 10-11% in 750-799 range

It become difficult if your score is below 700

Most of the banks and NBFC's does not offer loans to you

It generally happens when you default on past loans

I already made a video on how the CIBIL score is calculated and its basics

How you can improve your CIBIL score

You can also watch those videos from a link in the description

Now, if your score is 700 below

And you are not getting a loan

Or you didn't have a credit history at all

right, Then how you can get the loan in that case

And see what alternate you have

firstly, If you want a home loan especially, you should get on spouse name

husband or wife whose CIBIL score is good or you can apply for a joint loan

In a joint loan, CIBIL score of both is considered

In that you are betteroff, chances of getting loan is higher

It is useful in home loans and bigger loans

when you getting in loan on spouse name or joint loan

Point Second, you can add a guarantor if you not greeting a loan at own name or on not having a credit history

Maybe you go for higher studies and does not have any job that mean you didn't have a credit history

In that case, you can add your parents, brother-sister, or any relatives as guarantor

If you didn't have a credit history or a having low score

You should make a person guarantor whose credit history is good

A guarantor is generally useful in getting an education and personal loans

Thirdly you can approach alternating lending institutions

Alternating lending institutes like cooperative banks

Rural banks, microfinance companies, NBFC's

Microfinance companies

These types of small companies or cooperative banks

Didn't check the credit score

Therefore you can approach this for a loan

Especially in cooperative and rural banks

If you are familiar with someone there then you can get a loan easily

You can take help from the guarantor

If you know someone who already has a loan account

banks, saving, or another account in a cooperative and rural bank there

Then they can act as a grantor to you

and you can get a loan this way

Remember one thing interest rates in these loans can be higher

Suppose the best rates get on a home loan in a joint loan case

Let say the best rate is 8.5% in the normal case

Then you have to pay an interest rate 12-15% in that case

It is not bad at all if you didn't get a loan from any banks

It may be a nice option for you

Option fourth, Loan against securities

This means if you have F.D in a bank, any L.I.C policy, life insurance policy, gold, mutual fund or shares

You can get a loan against these securities, especially

In a case of L.I.C or life insurance policy(Endowment/whole life)

In which money come back

These loans are not available against the term insurances.

Where money-back guarantees are there

or endowment policy or whole life policy

we can get loan against them

or against gold security

or against ppf

We have talked about mutual funds and shares

or against credit cards, in fact, we can get instant loans in credit cards in today's date

but yes you don't get loans for a big amount

Then, overdraft facility are also available there

On salary account or saving or current account

but in this we have to keep in mind that

interest may vary from normal home loans

but it will be lesser than personal home loan

so when we talk about home loan

where we can get 8.5% interest on loan

then we can find that it will be 1 or 2% will be more

then you have pay average 10% average rate

but it is very cheap

in the case of personal loan

You can get up to 14 to 20% rate

Then loan against security is a good option

Where your credit scores are not check

and the second merit of this is that

It will help in improving credit score

because lets consider

If u take loan against FD

and u have less credit score

If we pay our new loan payment on time

It will help in improving credit score right

Then you should be alert

that when you have security

and if you take loan against it then it will be very profitable

you can get loan against it plus your credit score will also improve

Then my fifth tip is that

you can take loan from friends and family

many people know that you can sign a proper loan agreement

In which, how much will you make the interest payment, how will be the payment terms that you either pay monthly,

quarterly, annually, or a lumpsum amount

It is up to you, that interest rate can be 0% or at the market rate lets say up to 0% to 10%

or you can decide any interest rate

because it will be agreement between friends and family

then there will be no problem to anyone

second thing is that many didn't know about the tax benefits in this

For example, if take home loan, let say from own parents

let's consider at 0%

then also you can take tax benefits specially in under section 80c

when you make principle payment

under section 80c you can get tax benefit

I will make a detailed video on this topic in future

so you can take this tax benefits even if you take a loan from friends or family

but yes for proof u need to sign loan agreement

Then

If you are salaried class, then it may be possible your companies have tie-ups with some banks

because there relationships are good with the banks

Then you can approach a bank that has a corporate account of your company

because they give too much business to the particular bank

So, any bank can give loan easily to the employee of any reputed company in such case they will not check credit score

they will basically give loan on the company reputation

and you can approach to HR

and you can take letter from them

Generally, there are no problems to the companies for issuing such type of letters

Generally, this is beneficial for small loans

you can't take big loans from this

But let's consider there is requirement of some small loan

upto 40 or 50 thousand or 1 or 2 lacs requirements

Then, you can also approach to corporate tie-up banks

Then, now 7th tip is that u can also approach to private lenders

private lenders are especially very popular in a rural and semiurban area

and infact private lending are mostly common in india

but only disadvantage of it is that interest rate will be more

So, local financer in every local area in fact in the cities

they will charge rate of up to 2 to 3% monthly

then the annual interest rate could be 24 to 36% which is very high interest rate

In the other options we have talked about, you can get low interest rate in them

up to 10% or 12% or 15% but in case of private lending interest rate will be higher

Plus they will give the option to mortgage to the property of the gold of yours then only they give loans

For a small amount loan, consider it for the lesser duration because you should not take this for a longer duration

Because the interest rate will be much higher when you calculate it

You will find that within 2-2.5 years your borrowed amount will be equal to your interest amount

Let's consider you take amount for 3 years at 36% rate then 36*3 it will cross 100

Then, lets consider you take loan for 2 lacs for 3 year then you are going to pay more than 4lacs right

Then for sometimes, let's say 4 or 6-month requirement then u can also consider this option, otherwise

If you want for a longer period then u should consider my other tips

Now, my 8th tip is, In today's date new peer to peer lending institutions have come,

Which is a new concept and many people are unaware of this

This is basically an organized way of private lending, we have talked about private lending in which individual financer,

Who has a small amount of money, generally deal in cash/give money

But in peer to peer lending in today's date, there are many organized companies

which take money from investors where investors invest there money

If u want to invest then u can invest with peer to peer lending institutions from there your money is given to other

In between they will take there commission and lend money to other

Just like that, u can take a loan from p2p institution, I'm not telling about names of any institution

This is not a sponsored post but if u search u can find many p2p lending institutions

Here interest could be 15 to 30%

and now considering private lending individuals this is better then that

Here, u can built trust because here company is investing its own reputation as a stack at its own risk right

Then, the loan tenure could be somewhat of 6-36 months, u should not consider it as a home loan

Basically, if there is requirement of personal loan then u can consider p2p lending

and here also credit score is not considered but in some cases, it may be considered

But, maximum p2p lending institution will consider every factor

Let's consider your credit score is less but your salary or income level is good you are frequently an investor

u have saving habits then u can get loans easily

and yes second thing is that this institutions are not regulated RBI has no regulation on this

as on date may be possible in future RBI to regulate them because for banks and NBFCs there are regulations of RBI

But for now, there is no regulation for p2p landing

So basically this will not impact your credit score like if u have borrowed any amount from p2p as a loan

and if u pay the payment on time it will not affect your credit score

Then u should keep in mind that if u want to improve your credit score,

then you can take loan against security it will improve your credit score

Now let's talk about the 9th tip, i.e. you should improve CIBIL Score

Because there is no real alternative way of improving CIBIL Score

if you have less CIBIL Score then there could be problems in future

Your target should be to always maintain more then a 750 score

and if are able to maintain more than 800 score then it will be best because you can get best rate for every loan

You should make good credit history

But if you have a score of more than 750 before and now it became less than 600 or 650

Then it will not improve immediately for reaching that level again it could take 1 or 2 years

That is why I always told you that you should make payments on time and also EMI always make full payments

like if u use a credit card then don't make minimum due pay and always make full payments

Because that will also lower your CIBIL Score

I have also made on improving CIBIL Score, you can also watch that video

You can find the link in the description

I think I have cover every tips and alternative in this video

If your CIBIL Score is less or you have no credit history this is how you can take loan

In this video I have tried to cover all the major points

If you find any point missing then you can comment down in the comment section

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