CIBIL Score: People with poor CIBIL score will get the loan, but they will have to face this big problem

New Delhi Media, In difficult times when money cannot be arranged from anywhere, people resort to personal loans. But many times due to not having a good Cibil Score, you face problems in getting a loan. Small and big banks or non-banking finance companies of the country easily give personal loans. However, customers who have a poor credit score have to face many challenges.

Challenges of bad credit score –

It is not true that customers with poor credit score do not get personal loans. In fact, such customers do get loans but the interest charged is very high. Apart from this, the loan amount is also limited. 

In fact, lenders consider a low credit score (usually below 620) as a defaulter. This is the reason why limited loan options are available. At the same time, most big banks refuse to give loans to such customers. Even if the loan is approved, a much higher interest is charged than customers with a better credit score.

Problem even if there is no credit history-

If the customer does not have a credit history, then getting a personal loan can be difficult. In such a situation, lenders do not have the necessary data to assess your creditworthiness and repayment habit. 

Due to which it becomes very difficult for lenders to find out the customer profile, which potentially makes lenders hesitant when considering your loan application. 

Such customers may face limited loan options or potentially increased interest rates upon approval. Sometimes lenders evaluate alternative criteria such as income stability etc. instead of relying only on your credit score. Even then, they often apply increased interest rates.