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5 Ways to Avail a Used Car Loan even with Bad CIBIL Score

5 Ways to Avail a Used Car Loan even with Bad CIBIL Score

You may want to avail a used car loan to buy your dream car, but your loan application may be rejected because of a poor CIBIL score. A used car loan is a version of a personal loan that has been designed to finance the purchase of a used car. 

However, since a used car loan is an unsecured loan, your lender considers the CIBIL score as the key factor in determining your eligibility. If you have a poor CIBIL score, then your loan application may get rejected by a lender. 

As a result, you may not get the loan approval. But, did you know that you can still get your loan approval despite having a bad CIBIL score? Yes, it’s possible if you follow some tips. Read on this post and know more!   

1. Submit a collateral 

In case, if your loan application is being rejected because of not having a good credit score, then you can try to get a secured loan. Collaterals such as land, fixed deposits, gold can be used to avail a secured loan even when you have a poor CIBIL score. 

2. Check if your employer has a tie-up with the lender 

If you work for a reputed organization, then there are chances that it may have collaboration with your bank. It is because of the part of the corporate affairs; your lender may offer you special facilities on loan and other lending facilities. It may help you in getting the loan approval. 

3. Try to get a joint loan with your spouse or a family member

Did you know that if your spouse or any family member has a good CIBIL score, then you can get the personal loan for used car approval easily? Yes, if your spouse or any family member has got a strong CIBIL score, then you can easily apply for a joint loan.

4. Avail the used car facility with a guarantor 

Do you have a guarantor among your family and friends who have a good credit score? Then, there is a possibility that you may get a loan sanctioned on your guarantor’s CIBIL score. 

5. Other sources 

Other sources other than your creditor, which might lend you, are worth considering as well. You can try to get a loan from a non-banking finance company (NBFC). These companies have more relaxed loan eligibility criteria than banks. They may be more than willing to provide you with a loan. But, you should note than you may have to cough up a higher rate of interest than other lenders. 

One of the quick ways to improve your CIBIL score is paying off your dues religiously. You can pay off your dues such as existing loan and credit card outstanding on time. It can help you improve your CIBIL score and help to maintain it on the higher side. As a result, you will be able to get your approval for a personal loan for used car on time. 

You are now aware of some of the smart and easy steps to get approval for the used car loan to get the keys of your car instantly. You can use any of these methods if your CIBIL score is not healthy and you are in desperate need of the loan.

Bajaj Finserv offers pre-approved deals on financial facilities such as EMI finance, personal loans and more. It can make your loan procedures simple and less time-consuming. All that you have to do is share your basic details such as your name and mobile number to check out your pre-approved loan offers today.


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Pardeep SharmaPardeep Sharma
Joined: June 17th, 2019
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