Individuals who do not have a great Cibil credit score, are liable to face rejections in their loan applications. This is particularly true if the loans are big ticket personal loans or home loans. Banks may not apply stringent policies for smaller loans like a consumer durable loan.
1) Look for a co-applicant to a home loan
If your own credit score is weak, you can look for a joint home loan applicant. If you have a working spouse with a good Cibil credit score, it would be very useful. Or else, a relative who has a good credit score could also act as a co-applicant.
2) Look to smaller lenders
There are many smaller cooperative banks that might want to lend money to you. This may come at a slightly higher interest rates, which you would need to pay. It's extremely doubtful that a housing finance company or a reputed bank would lend to an individual with a bad credit score. So, look for other options.
3) Loans against securities
If you have something to pledge, the bank or the concerned institution will not bother to check your credit score. For example, if you take a loan against gold, there is no question of the bank credentials. This is because, if you default, the bank might sell your gold ornaments to recover the outstanding amounts. This also holds true for loan against shares.
Looks for loans such as these.
4) Borrowing from family
In case you need a loan, you might want to look at other family members, who are willing to lend, in case your loan is rejected due to poor Cibil Credit Score.
5) Small money lenders
You may still find a lot of lenders in the unorganized sector, that could lend. The concept of money lending is still prevalent in the smaller cities and towns. You may want to look at this option to bridge your financial requirements.