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Ramalingam

Ramalingam Kalirajan  |8317 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 18, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Kokila Question by Kokila on Mar 29, 2024Hindi
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How to get personal loan when cibil score is low

Ans: Getting a personal loan with a low CIBIL score can be challenging, but it's not impossible. Here are some strategies you can consider:

Improve Your CIBIL Score (if possible):

Check and Fix Errors: Ensure your credit report is accurate. Dispute any errors you find with CIBIL to improve your score.
Reduce Credit Utilization: Pay down existing credit card balances to bring your credit utilization ratio (outstanding credit divided by credit limit) below 30%.
Maintain a Good Repayment History: Make timely payments on all your existing loans and credit cards.
Approaching Lenders:

Focus on NBFCs and Fintech lenders: These lenders may be more flexible with credit score requirements compared to traditional banks.
Apply with a Co-applicant: Having a co-applicant with a good credit score can significantly improve your chances of loan approval and potentially get you a better interest rate.
Offer Collateral (if possible): Securing the loan with collateral like a car or fixed deposit can make it more attractive to lenders, even with a low credit score.
Negotiate Loan Terms: You might be able to negotiate a smaller loan amount or a slightly higher interest rate to get approved.
Additional Tips:

Compare Loan Offers: Get quotes from multiple lenders to compare interest rates and terms before finalizing a loan.
Borrow Only What You Need: Avoid borrowing more than you can comfortably repay.
Be Wary of High-Cost Loans: Steer clear of lenders offering very high interest rates or predatory loan terms.
Here are some resources that you might find helpful:

CIBIL Website: https://www.cibil.com/
Paisabazaar - Personal Loan for Low Credit Score: https://www.paisabazaar.com/credit-score/cibil-score-for-personal-loan/
ICICI Bank - Personal Loan with Low Credit Score: https://www.icicibank.com/blogs/personal-loan/personal-loan-with-a-low-cibil-score
Remember, a low CIBIL score can lead to higher interest rates on your loan. So it's important to weigh the cost of the loan against your needs before proceeding.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |8317 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 02, 2024

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My education loan 7.5 lakh is cancelled due to low cibil score of co- borrower ( father) how can i get... Education loan Instantly
Ans: You were looking forward to getting an education loan of Rs. 7.5 lakh. Unfortunately, the loan was canceled because of your co-borrower’s low CIBIL score. I understand how crucial this loan is for your education. Let's explore the steps you can take to secure the required funds.

Assessing the CIBIL Score Impact
CIBIL Score Role: The CIBIL score is critical for loan approvals. Banks rely on it to assess the risk associated with lending money. A low score of your co-borrower indicates a higher risk, leading to loan rejection.

Focus on Your Own Score: If your own CIBIL score is good, you can reapply with yourself as the primary applicant. Sometimes, banks may overlook the co-borrower’s score if the primary applicant has a strong credit history.

Exploring Alternative Co-Borrowers
Consider Another Co-Borrower: If possible, consider another family member with a good CIBIL score as the co-borrower. A better score improves the chances of loan approval significantly.

Involving a Guarantor: Some banks allow adding a guarantor instead of a co-borrower. A guarantor with a strong credit history can enhance your loan eligibility.

Approaching Different Lenders
Public Sector Banks: Public sector banks are generally more lenient with education loans. They may have different criteria, so it’s worth applying to a few of them.

NBFCs: Non-Banking Financial Companies (NBFCs) are another option. They may offer education loans with more flexible terms, even if the CIBIL score isn’t perfect.

Private Lenders: Some private lenders specialize in education loans and may consider your overall profile rather than just the CIBIL score. However, interest rates might be higher.

Government Schemes and Subsidies
Government Schemes: Look into government schemes like the Credit Guarantee Fund Scheme for Education Loans (CGFSEL). This scheme reduces the risk for banks, making them more willing to lend.

Interest Subsidies: If you meet certain criteria, you may be eligible for interest subsidies under various government schemes. This could make it easier to secure a loan.

Improving the Loan Application
Re-Check Documents: Ensure all documents are complete and accurate. Incomplete or incorrect documentation can lead to loan rejection.

Highlight Academic Performance: Emphasize your academic achievements and future potential in the application. A strong academic profile can sometimes compensate for a co-borrower’s low CIBIL score.

Consider Collateral: If you have any assets, offering collateral can strengthen your loan application. Secured loans are less risky for banks and might be approved even if the CIBIL score is low.

Immediate Financial Alternatives
Personal Loans: If time is of the essence, you can consider applying for a personal loan. Though interest rates might be higher, it can provide immediate funds for your education.

Family Loans: Consider borrowing from family members. It can be a quick and interest-free solution, although it requires clear communication and repayment terms.

Crowdfunding: Crowdfunding platforms can also be an option. If you have a compelling story and clear goals, you might be able to raise funds for your education through donations.

Final Insights
Do Not Get Discouraged: The rejection due to a low CIBIL score is just a temporary setback. There are multiple other avenues to explore.

Explore Multiple Options: Don't rely on a single lender. Apply to multiple banks, NBFCs, and even explore government-backed schemes to increase your chances.

Long-Term Planning: While securing funds immediately is crucial, consider working on improving the CIBIL score of the co-borrower. This could help in future financial needs as well.

Consult a Certified Financial Planner: Before making any decisions, consult with a Certified Financial Planner. They can help tailor the right financial strategy for your situation and guide you through the process.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Nayagam P

Nayagam P P  |4474 Answers  |Ask -

Career Counsellor - Answered on May 02, 2025

Asked by Anonymous - May 02, 2025
Career
Can I get NIT Trichy ECE with 98%ile in JEE MAINS 2025 ?? EWS rank 4146
Ans: Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories both Home State (HS) i.e. State you belong to & also Other State (OS).
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in, separately for HS & OS Categories for a quick reference.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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