Bad Credit: Difficult scenarioCan you avail a loan with bad credit?
24 Mar 2008
Availing a loan is the most difficult task for someone with bad credit. Actually it is an adverse situation to be in, which will affect your loan approval. This section of borrowers is treated as 'most risky' by the lenders. As credit checks done before the loan sanctioning go against them, lenders find it hard to trust such borrowers.
How about a loan plan that does not require a credit check and can help the borrower to get the money that he wants? There are certain loan plans available in the UK financial market that allows individuals with bad credit ratings to have money for variety of needs. These loans can be made available with or without pledging residential property as security.
A bad credit personal loan is available for all types of borrowers and the purpose of borrowing can be any thing that is legally correct. But it is a fact that finding a no credit check loan is not as easy as the lenders claim.
These loans come with high interest rates and many times require a co-signer. These loans also usually come with a short payback time. Lenders are ready to take the risk with the assumption of getting regular repayment of the loan.
But does Indian financial market has provision for such borrowers?
Let's find out. Typically lenders in India treat it as a very risky affair to give personal loans to borrowers with bad credit rating without a credit check. Out of which State Bank of India, and HDFC Bank are very clear about their stand on the matter. These lenders do not consider granting loans to these borrowers.
From a lender's point of view, we see that it hard for them to trust such borrowers who have lost their creditworthiness.