What are the Options of Personal Loans for CIBIL Defaulters? 


If you fail to repay the borrowed sum you become a defaulter. According to Experian, a default takes place if the lender decides to close your account because you have missed payments. A CIBIL score is an important factor that is taken into consideration by lenders at the time of sanctioning your loan. A default stays on your CIBIL report for a period of 7 years from the date of the default. It is difficult to get a loan if you have defaults on your credit report. When you miss payments, it suggests that you are struggling to repay the credit and are unable to manage your finances.   
Majority of lenders offer loan to people who have a CIBIL score of 750 and above. However, there are few lenders that still offer loan to individuals who have CIBIL defaults. The rate of interest for availing a loan in such cases is very high.


Here are some of the measures you should take get one step closer to get a loan: 
  • Secured loan 
Instead of opting for a traditional loan, you can take a secured loan which is given to you against collateral. 
  • Improve your credit score 
You need to start rebuilding a credit history and pay all the bills on time. The biggest factor that affects your CIBIL score is missing payment due data and not paying the full bill amount. 
  • Clear all the debts 
In order to start working on your CIBIL score, you need to clear all your pending debts. The amount of the debt is not important, but you should pay it off at the earliest and focus on using the credit wisely. 


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