When you have bad credit, it seems like it comes back to haunt you at the most inconvenient times. Whether you have monthly bills or your house need to repair, getting a loan is not easy. What are the conditions for getting bad credit loans in India?

Bad credit loans in India
What are the conditions for getting bad credit loans in India?

In the previous post, Info Credit Free introduces people to some of the necessary information that is useful for getting the personal loans in India, to get more information people can read the article There are a lot of types of personal loans in India to choose.  Now, let find knowledge about bad credit loans in India in the post today.

BAD CREDIT LOANS IN INDIA

Just like a lot of article posts such as unsecured personal loans bad credit, small loans online, unsecured loans for people with bad credit, loans for bad credit history… this post about bad credit loans also includes some main parts. They are:

1Some types of bad credit loans in India you can choose

1.1. Loan from NBFCs

Non-bank financial companies (NBFC) provide loans and tolerance on eligibility criteria, so even a slightly lower credit score can be ignored. Credibility is not a strict criterion for NBFC and therefore, it is not difficult to borrow from them, although at higher interest rates.

1.2. Secured Loan

Secured loans require collateral for lenders before lending. Collateral plays a role in securing lenders and reducing the risk of debt default of borrowers. In case of insolvency, lenders have the right to confiscate assets and recover fees by auctioning them.

Because lenders are in a safe position, creditworthiness may not be a big factor while avoiding lending, making it easier for people with low credit scores to receive personal loans.

1.3. Apply with a guarantor or co-signer

Although you have a low credit score, you may know someone who has a high score and is willing to act as a guarantor or a co-signer for the loan. There is a guarantor or co-signer who basically has a trusted person for you. In case you do not do so, the lender can recover the fees from the sponsor or the co-signer.

Since the lender is receiving assurance from the guarantor that the loan will be repaid, won hesitated to issue the loan. This can be a really easy way to get a fined individual.

2. Some benefits and drawbacks of bad credit loans in India

2.1. The benefits of bad credit loans in India

  • Borrowers are not worried about their credit history (poor credit or bad credit or no credit history)
  • Quick loan approval
  • Can help people who have a bad credit history in improving their credit
  • Borrowers can get large amounts of money
Bad credit loans in India
What are the conditions for getting bad credit loans in India?

2.2. The drawbacks of bad credit loans in India

  • High-interest rate
  • Easy to land on unscrupulous lenders
  • Stringent terms and conditions
  • Easy to cripple individuals without financial discipline

3. The interest rate and fees of bad credit loans in India

Maximum Annual Percentage Rate (APR) 10.99% to 22%
A representative example:
  • Total amount borrowed: Rs. 1 Lakh
  • Time period: 12 months to 60 months
  • Personal Loan Interest Rate: 10.99% to 22%
  • Processing Fee payable: Up to Rs. 2,000
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From Rs. 2,174 for a month’s Rs. 1 Lakh loan at 10.99% (lowest rate, longest time period) to Rs. 9,359 for a 12 months Rs. 1 Lakh loan at 22% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Annual Percentage Rate (APR) of charge including all applicable fees: 10.99% to 22%
  • Total cost payable over loan tenure: Rs. 14,313 for 12 months loan to Rs. 32,424 for 60 months loan

This post is about a bad credit loan in India. We provide this information to offer you some of the necessary information that is useful for getting bad credit loans in India. Also if you are looking for information about SBI personal loans, please refer to the Max SBI personal loans amount Rs 14 lakh for applicants below 72 years link we just provided in the previous article. 

Hillary (Team Content) – Info Credit Free