Financial emergencies can strike any moment, leaving you requiring immediate access to liquid funds. While dipping into your savings is a straightforward option, it can leave you with insufficient funds for significant future expenses like your child’s education or wedding.
In these situations, taking a loan can provide the necessary financial support. However, the availability of a loan and the terms offered often depend on one critical factor: your credit score. Securing a loan can be challenging if you have a low credit score.
What Is A Credit Score?
A credit score is a numerical representation of an individual’s creditworthiness and ranges from 300 to 900 in India. Lenders use it to assess the likelihood of a borrower repaying a loan. The higher the credit score, the more likely a lender will approve a loan application and offer favourable terms.
Credit rating agencies, such as TransUnion CIBIL Limited, generate the credit score which maintains credit files for over 600 million individuals and 32 million businesses. The score reflects an individual’s credit history considering factors of payment history and outstanding debt. With a higher credit score, an individual is seen as a lower risk to the lender and is, therefore, more likely to receive a loan with favourable terms and conditions.
Credit rating agencies calculate the credit score based on your previous repayment history. For example, if you have paid your electricity bill before the due date, it increases your credit score. However, any default in such repayments beyond the due date decreases the credit score, making it difficult to apply for a loan.
For most loan products, lenders require you to have a high credit score. However, if you have a bad credit score, there is a way to raise funds from lenders.
Urgent Loans For Bad Credit
Lenders have realised that borrowers may have bad credit scores for numerous reasons which may not necessarily reflect negatively on their creditworthiness. For example, a borrower may be unemployed for a few months due to personal reasons, resulting in payment defaults. However, with a new job and regular salary, the borrower can repay a new loan to the lender. Hence, lenders have designed an alternate credit model called urgent loans for bad credit.
If you have ever been in a situation where you thought, “I need money urgently”, urgent loans for bad credit may be your saving grace. Such loan products offer instant and adequate funds to the borrower even with a low credit score. In this case, lenders consider other factors to determine credibility and eligibility rather than the credit score.
Features and Benefits Of Urgent Loans For Bad Credit
I need a loan urgently, or I need money urgently, is a commonly used phrase in case of financial emergencies and inadequate savings to cover expenses. Before lenders introduced urgent loans for bad credit, individuals with low credit scores could not apply for a personal loan and fulfil their capital needs.
Urgent loans for bad credit ensure that individuals can get instant funds to cover expenses through the following features and benefits.
• Flexible Loan Amount:
Lenders analyse the borrower’s eligibility and offer a loan amount depending on relevant factors. You can get an instant loan up to Rs 5 lakh.
• No Collateral:
When you need a loan urgently, pledging a valuable asset as collateral can be time-consuming and difficult. However, urgent loans for bad credit allow borrowers to raise collateral-free immediate funds from the lenders without pledging a valuable asset.
• Instant Funds:
One of the best benefits of a bad credit loan is the approval and disbursal time. Lenders approve the loan amount within five minutes of loan application submission. Furthermore, once approved, the borrowers get the loan amount within 24 hours to their bank accounts.
• Credit Score:
Lenders have designed the eligibility criteria for urgent loans for bad credit to come with a credit score requirement of 600. Although such a credit score will result in rejection of the loan application in the case of traditional loan products, you can get up to Rs 5 lakh through a bad credit personal loan.
• Affordable Interest Rate:
Bad credit personal loans have affordable interest rates and flexible EMI options that do not financially burden the borrower. Successful repayment also increases the credit score to avail of loans in the future.
Eligibility Criteria For Bad Credit Personal Loans
Here are the eligibility criteria for bad credit personal loans:
• Applicants must be between 23-60 years of age.
• Applicants must have a minimum salary of Rs 20,000.
• Income must be directly credited to the applicant’s bank account.
• Applicants must have a minimum credit score of 600.
Avail Of An Ideal Urgent Loan For Bad Credit From IIFL Finance
We provide comprehensive and customised personal loans to fulfil your capital requirement. IIFL Finance has designed urgent loans for bad credit to offer instant funds up to Rs 5 lakh with a quick disbursal process. You can apply for the loan online or offline by visiting IIFL Finance nearest branch and verifying your KYC details.
Q.1: What is the loan tenure of IIFL personal loans for bad credit?
Ans: You can choose a loan tenure between 3-42 months.
Q.2: What is the minimum credit score requirement for such loans?
Ans: IIFL Finance requires you to have a minimum credit score of 600 for approving a personal loan for a bad credit loan application.
Q.3: What’s the disbursal time for IIFL Finance loan for bad credit?
Ans: The lender disburses the loan amount within 24 hours into the borrower’s bank account.