Do you have a credit score in the range of 600 to 700 and are looking for a personal loan? Well, there are many banks and NBFCs such as Shriram Finance that are offering personal loans in India, but it can be hard to know which one is the best option for us. These Personal loans can be used for various purposes, such as consolidating debt, paying off medical bills, covering medical emergency expenses, home improvement and renovation, purchasing a vehicle such as a car or a motorbike, paying for education expenses, wedding expenses, vacation expenses, and any other unexpected expenses which may suddenly come up. Click here to learn more about personal loans for credit scores in the range of 600 to 700.
5 Personal Loans Offered by Shriram Finance for Those Who Have Credit Scores in the range of 600 to 700
Shriram Finance is a leading non-banking financial company (NBFC) in India that offers a variety of personal loans to borrowers with credit scores in the range of 600 to 700. All of these personal loans are collateral-free and offer flexible repayment options. The interest rates on these loans are competitive and start at 12% p.a.
Here are 5 personal loans that you can get from Shriram Finance
- Personal Loan: This is a versatile personal loan that can be used for a variety of purposes, such as debt consolidation, home repairs, medical expenses, travel, or wedding expenses. You can borrow up to Rs. 15 lakhs with a repayment tenure of 12 to 60 months interest rates starting from 12% *p.a.
- Personal Loan for Women: This personal loan is specifically designed for women and can be used for a variety of purposes, such as personal expenses, business expenses, or other financial needs.
- Consumer Durable Loan: This personal loan can be used to purchase consumer durables, such as a car, refrigerator, washing machine, or television.
- Medical Emergency Loan: This personal loan can be used to cover the cost of unexpected medical expenses, such as medical treatments, surgeries, or hospital stays.
- Travel Loan: This personal loan can be used to cover the cost of travel, such as airfare, accommodations, tours, and other related expenses.
Loans for Low Credit Scores
Getting approval on your loan application can be difficult if your credit score is below 700. However, some lenders specialise in providing loans to those with lower-than-average scores. These lenders may offer more favourable terms, such as lower interest rates or longer repayment periods, that make it easier to pay back the loan without putting too much strain on your finances.
In addition, some of these lenders may also provide additional benefits like flexible payment options or even debt consolidation services that can help improve your overall financial health over time by reducing high-interest debt and increasing savings potential. However, you need to be aware that such payment options may come at higher interest rates, sometimes as high as 42% p.a. So, please do due diligence before availing of such loans.
What Makes up a Bad Credit Score?
Our credit score is determined by several factors, including our past payment history (if any), current debts owed (including outstanding loans), the length of time our accounts have been open/active, the total amount borrowed from various sources (such as banks), etc., all of which contribute towards determining how likely it is that someone will default on their payments when taking out a new loan product.
Things to Keep in Mind Before Availing a Low Credit Personal Loan
When looking for a personal loan with a less-than-ideal credit score, it is crucial to follow these steps:
- Compare loan offers from various lenders to discover the most favourable option.
- Before submitting your application, review your credit report for accuracy and potential areas for improvement.
- Calculate the total repayment costs and allocate funds to guarantee on-time loan repayment.
How to Get a Bad Credit Personal Loan?
Getting a bad credit personal loan can be challenging, but it is possible. The first step to getting a bad credit personal loan is to check your credit score and make sure that you understand what factors have caused your poor rating.
Once you know what needs to be improved, start looking for lenders who specialise in providing loans for people with bad credit ratings. Make sure that the lender offers competitive interest rates and flexible repayment terms before signing any contracts or agreements.
Additionally, shop around online and compare different lenders’ offerings so that you get the best deal available for your situation.
Lastly, create a budget plan so that once approved for the loan; you can pay off the debt quickly without causing further financial hardship on yourself or family members involved in co-signing on any of these types of loans if necessary.
How to Increase Your Chances of Securing a Bad Credit Loan
Improving your chances of approval for a personal loan with a bad credit score entails taking the following strategic steps:
- Co-signing: Have a co-signer provide collateral in the event of a default, improving repayment prospects.
- Accurate Documentation: To demonstrate employment stability and ensure accurate and current income statements.
- Timely Payments: To demonstrate responsible behaviour, keep a record of on-time payments.
- Negotiate Contract Terms: Provide a shorter contract period to reduce risk and increase lender confidence.
- Demonstrate Progress: Highlight attempts to correct past mistakes and improve creditworthiness.
- Borrowing Caution: Borrow a moderate amount within your means to improve payback feasibility.
- Investigate Lenders: Look for specialised lenders willing to consider negative credit applications.
- Financial Stability: To make a good impression, and show steady income and financial stability.
- Professional Advice: Seek financial advice to help you manage the procedure intelligently and increase your prospects.
- Transparent Communication: Communicate openly with potential lenders about credit difficulties and repayment strategies.
Ways of Getting Personal Loans for Bad Credit
There's no one-size-fits-all answer here, but generally speaking, most people who don't qualify through traditional channels will likely end up going down either route mentioned above: secured vs. unsecured lending products, depending upon individual circumstances and preferences.
If your credit score falls between 600 and 700, then there are various options available to help you secure a loan with reasonable interest rates and repayment terms. You can consider taking out an unsecured personal loan from online lenders or peer-to-peer lending platforms that provide loans tailored specifically for people with bad credit scores like yours.
Alternatively, secured loans such as a gold loan or a business loan may be an option if you can provide the collateral needed to avail of this type of secured loan.
Additionally, some banks might also offer special programs designed just for those having lower scores, so make sure to shop around before making any decisions.
Alternatives to Bad Credit Loans
If none of these traditional finance options works out well enough according to your needs or preferences, don’t worry, as other alternatives could prove beneficial when the time comes for securing funds without putting too much strain on one's finances over long periods.
Due to their flexible nature and low interest rates associated with them, debt consolidation plans offered by many financial institutions as well as short-term payday advances from direct lending companies, both online and offline sources alike, are great alternatives to bad credit loans.
These types of services typically require no collateral upfront, thus providing more leeway when dealing with tight budgets while allowing borrowers access to quick cash whenever needed, most urgently during emergencies, etc.
Conclusion
The personal loans mentioned above are great choices if you have a credit score between 600 and 700 and need some extra cash quickly. Be sure to do proper research before selecting any particular lender to get the maximum benefit out of the deal while enjoying peace of mind. Each bank or NBFC has different sets of criteria, policies, and procedures, giving us more flexibility when selecting what suits us best according to our individual needs and requirements, thereby helping to save time, energy, and money. Click here to learn more about personal loans for credit scores in the range of 600 to 700.
Key Highlights
- There are several personal loans available to those with credit scores in the range of 600 to 700.
- The interest rates and repayment terms for bad credit personal loans can vary depending on the lender and the borrower's circumstances.
- Pro tip: To improve your chances of getting approved for a bad credit personal loan, you can try co-signing with someone who has good credit or providing collateral.
FAQs:
1. Can I get a personal loan with a 600 credit score?
Yes, even though a 600 credit score is considered quite low, you can still get a personal loan provided you prove your repayment capacity by showing sufficient income.
2. What is the average interest rate offered if my credit score is between 600 and 700?
The average interest rate offered for a credit score of between 600 and 700 is around 15%. However, the actual interest rate offered will depend on many factors such as your income, your outstanding debts, and employment history.
3. How much loan can I get with a credit score of 600?
The amount of loan you can get with a credit score of 600 will depend on your income, your outstanding debts, and your employment history. However, you can typically get a loan of up to Rs. 5,00,000 with a credit score of 600.
4. Can I get a personal loan with a 700 credit score?
Yes, you can get a personal loan with a 700 credit score. The average interest rate for a personal loan with a credit score of 700 is around 12%.
5. How to get an instant loan with a 600 credit score?
There are a few ways to get an instant loan with a 600 credit score. One way is to apply for a loan from a bank or NBFC (Non-Banking Financial Company) that offers instant loans. Another way is to apply for a loan from a peer-to-peer lending platform.
6. How to increase your credit score from 600 to 750?
There are several things you can do to increase your credit score from 600 to 750, such as:
- Making all your payments on time.
- Keeping your credit utilisation ratio low.
- Asking for credit limit increases.
- Disputing any errors on your credit report.
7. Which is the best loan app for a 600 credit score?
For a 600 credit score, consider exploring loan apps that specialize in accommodating diverse credit backgrounds, offering tailored borrowing options suited to your financial situation. Be sure to thoroughly review terms and conditions to ensure compatibility with your needs.
