How to get a loan despite a bad credit score


I urgently need a personal loan because I have to go through a medical procedure. But my loan is rejected by the banks. I was told it was because of my bad credit rating. Should I keep applying and see if anyone is ready or are there other options?

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Unfortunately, getting a personal loan can be extremely difficult if you have a bad credit rating, especially in today’s situation, as most banks and NBFCs, since the pandemic, have been cautious in granting new loans. loans and raised their eligibility criteria.

First, if you haven’t already, check with the bank (s) you have an existing relationship with. Since these banks would have more data on your income, cash flow, and expenses, chances are they’ll agree to give you a loan. If you are an employee, contact the bank where you have your salary account to see if you can get a loan. In case that doesn’t work, check to see if you can take out a loan with your credit card from your credit card issuer (s).

I do not recommend applying for personal loans from other major banks and NBFCs that you have never done a transaction with before. Getting a loan from them with a bad credit rating is unlikely. Instead, you can explore a smaller fintech, which can still provide you with a personal loan, albeit at a higher interest rate. But getting a large loan from them is again unlikely.

Other options can be secured loans, on the basis of certain collateral. If you have an outstanding home loan, you can apply for an additional loan from your home loan issuer. If you have a property in your name, you may also want to consider getting a loan against the property.

Gold loan is another type of secured loan which can be a quick and suitable alternative in case pledging gold as collateral is an option. Some lenders may also provide loans against securities such as mutual funds, stocks, bonds, ETFs, and various small savings programs.

Naveen Kukreja is CEO and co-founder of

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