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Best Bad Credit Loans in India 2024

Submitted by admin on October 9th, 2024

Indian Personal Loan these are sources of finance that people use seeking funds for various reasons: Medical emergencies, as well as consolidation and home renovation. Some people find loans particularly challenging when they have low credit or no good credit scores at all. Worry not because there are various loan providers within India who offer personal loans that cater for bad credit scores. Let’s examine some of the top choices and qualification criteria.

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1. Fullerton India

Loan Characteristics:

• Interest Rates: 11.99%
• Loan Amount: up to ₹25 lakh
• Eligibility: minimum credit score of 550
• Processing Fee: up to 3% of the amount borrowed

Fullerton India is one of the prominent NBFCs that lends personal loans even to people having a low credit rating. Straightforward application, with quick disbursement, makes it a very reliable go-to option for those who are in immediate need of some fund generation.

Benefits

Advantages:

• Time duration for repayments is flexible, up to 60 months
• Disbursal and sanctioning is quick

Disadvantages:

• Higher rate of interest with low credit scores
• Needs extra documentation for some verification purposes

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2. Bajaj Finserv

Loan Features:

• Interest Rates: Starts from 13%
• Loan Amount: Up to ₹25 lakh
• Eligibility: Minimum credit score of 600
• Processing Fee: Up to 4% of the loan amount

Bajaj Finserv provides personal loans with lenient eligibility criteria. Therefore, you can get a bad credit loan; the only catch is that the higher interest rate will be charged for lower credit scores.

Pros:

• Loan approved in no time
• Pre-approved loan offers are available for existing customers

Cons

• For the applicant with lower scores, more rigorous documentation is required.
• Higher fee and charge

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3. IDFC FIRST Bank

Loan Features:

• Interest Rates: 10.49% – 18%
• Loan Amount: Up to ₹40 lakh
• Eligibility: No specific minimum credit score; credit history is considered
• Processing Fee: 3.5% of the loan amount

IDFC FIRST Bank is also offering loans for personal purposes and aids people who have different credit scores and is based on different considerations while lending, hence perfect for those with bad credits, as they look at the overall stability of finance rather than the credit score.

Positive:

• A competitive interest rate
• There is no need for collateral

Negative:

• Requires a good income-to-debt ratio for availing of the loan
• Higher processing fees

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4. Kotak Mahindra Bank

Loan Features:

• Interest Rates: Starting at 10.25%
• Loan Amount: Up to ₹25 lakh

Eligibility: Credit score of 600 or more

Processing Fee: 2.5% of the loan amount

Kotak Mahindra Bank has always been customer-friendly and provides personal loans to people with bad credit, although the actual loan amount and interest rates will change with the applicant’s overall financial profile.

Benefits:

• Disbursal is fast
• No charges for prepayment

Drawbacks

• For those with very low credit scores, the eligibility criteria is rigid
• For a person with a bad credit history, the loan amount will be less

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5. Indiabulls Dhani

Features of the Loan:

• Interest Rates: Starts with 11.99%
• Loan Amount: Upto ₹15 lakh
• Eligibility: Minimum credit score of 600
• Processing Fee: 3% of the loan amount

Indiabulls Dhani provides loans through complete digital processes, which are quite helpful to people in urgent need of money. A person with low credit scores can also apply for loans, but the interest rate might vary.

Pros:

• Completely digital
• Flexible Repayment

Cons:

• High Interest rates for Low credit scorers
• Penalty Charges on amount due Sometimes

Bad credit is not something that prevents acquiring a personal loan in India as you can work on your financial profile, choose the best lender for you, and find terms that can suit your necessities. You compare offers you get, read the fine print carefully, and avoid hidden fees or high interest rates.