Did a bank deny a loan due to a poor CIBIL score? Using this trick will help immediately.

If someone has a poor CIBIL score, can they get a loan? Such questions often arise. Let's explore how you can get a loan from a bank with a poor CIBIL score.

Loan With Poor CIBIL Score: There are many occasions in life when a person needs money immediately. In such situations, if they have saved up a fund for emergencies, their needs are easily met. However, many people do not have an emergency fund to deal with such a situation.

In such a situation, there is no other option but to take a loan from a bank. Banks primarily investigate a person's financial information and other factors before granting a loan. Banks primarily consider a person's CIBIL score. If a poor CIBIL score is a factor, banks may refuse a loan. If a person has a poor CIBIL score, can they get a loan? Let's explore how you can get a loan from a bank with a poor CIBIL score.

How to get a loan with a poor CIBIL score

If your CIBIL score is poor and your bank has refused you a loan, there's no need to panic. Your bank FD can be your support in such times. In most cases, banks will approve loans against FDs even with a low CIBIL score. However, the loan amount depends on your FD balance.

A loan against an FD is a type of secured loan. Banks do not look at your credit history, as your FD is the sole collateral for your loan. If, for some reason, you are unable to repay the loan, the bank reimburses the loan amount from your FD. Therefore, taking a loan against an FD can prove to be an easy and reliable option in case of a poor CIBIL score.

How to improve your CIBIL score

A loan can be taken out up to 90% of the FD amount. That is, if your FD is worth ₹1 lakh, you can avail a loan of up to ₹90,000. Your CIBIL score can improve if you repay your FD loan amount on time. You can improve your CIBIL score by up to 100 points by repaying your FD loan amount.