Loan Against Property for Cibil Defaulters-By Private Money Lenders

Interest Rate 1% per month. No advance, No Processing Fee, No file charge, No Hidden charges

All those who have defaulted on Loan repayments or have paid repayments untimely come under the category of Cibil Defaulters including those who have applied for loans at several places and their loan gets rejected then their Cibil Score also comes down then they will come in the category of Cibil Defaulters.

Private Money Lenders give loans against property for Cibil Defaulters also. Banks are constrained to follow the Credit Score of the applicant, private money lenders ensure that the asset secures the principal amount and can take it as a risky investment and will charge extra interest over it.

Loan Against Property is a high-value transaction in comparison to a personal loan. Banks follow a standard operating procedure to sanction a loan. A person having a Bad Credit History will not get their loan application approved.

Ways to Obtain Loan against Property for CIBIL Defaulters –

Obtain Loan from Private Financiers / Private Money Lenders:-

If you have a low CIBIL score and seeking a loan against property then a private money lender is the best bet in the financial market. Private money lenders have sufficient funds from several sources to avoid unnecessary tax liabilities.

Obtain Loans from friends and family: Cibil Defaulters should take loans from friends and family in case banks and other lending institutions deny or reject their loan application.
Peer-to-peer lending: Peer-to-peer lending forums are to lend money individually to individuals in an unregulated market. There are no RBI guidelines so far to regulate it. Some private individuals lend money to each other to get additional interest than banks etc.
Add more than one Applicant- If the principal applicant has a low credit score or is a CIBIL Defaulter then adding applicants can be included. Wife, Son, Daughter, etc. can be included to make the loan application more impressive and weighty.
Add directors/partners in firms and companies:- If the applicant is a company or a firm then add solvent directors and partners in the company or firm as the case may be. By including these directors and partners the chances of getting a loan from a bank or private lender increase substantially.
Add Guarantor- Adding a guarantor to the loan application improves the likelihood of the loan application being approved. A guarantor assures the lender that in case of default by the applicant, the guarantor is available to honor and repay his liability.
Offering Higher Value Collateral/Property- Offering a higher value property to the lender makes him feel comfortable that in case of default, the property given as security is there to reimburse his legitimate claim i.e. principal and interest.
Proof of Consistent Income Flow: The applicant should arrange the proof of income flow in black and white, to show the lender that the applicant can repay the loan amount to the lender. Having a stable income of the applicant is a must for the lender to agree to lend money to the applicant.
Maintain a good Debt-to-Income Ratio:

Having a good Debt-to-income ratio helps the lender understand the quantum of loan amount taken by the applicant. A debt-to-income ratio indicates the amount of loan outstanding upon the borrower about the borrower’s income. A high Debt-income ratio shows that there are high amounts of loans outstanding on the prospective borrower which makes the lender fearful of the repayment of the loan amount.

Conclusion:

Loan against property for Cibil defaulters is nearly impossible unless a private money lender or private individuals agree to lend money because as per the standard operating procedure of the Banks and NBFCs, they cannot lend money to the applicant as opposed to the policy framed by the Regulating body. Money in the bank is the people’s money that has to be accounted for. The bank takes money from the general public to lend it further to earn profit.

Do Banks or NBFCs have a policy to give a loan against property for CIBIL defaulters?

As per the policy laid down by the Reserve Bank of India and policy followed in the financial lending market, a CIBIL Defaulter cannot be given money as it is a very risky financial transaction.