Can’t qualify for a personal loan? Here are 4 alternatives to try

Date : 10/11/2022
Read: 3 mins

4 alternatives to personal loan

When you need instant funds, a personal loan can seem like the most convenient option as it offers quick funds through a simple application process. However, like other loans, personal loans, too, have eligibility criteria that you should qualify on. If you do not meet the required criteria, the personal loan will not be sanctioned. Does this mean you can’t get the funds that you need?

No, it does not. There are other alternatives to a personal loan that you can opt for if you don’t qualify for the loan. Here are four such alternatives –

Get a loan from family or friends - Though financial institutions might not give you a loan, your family or friends can come to your assistance. Get a loan from a relative or a friend for your needs. Approach a person whom you trust and who trusts you to get the loan. You can also borrow from your spouse if your spouse is an earning member or your parents if they have disposable funds.

You can also talk to your closest friends and take a loan from them.
Opt for secured loans - You can opt for secured loans if you are not eligible for a personal loan. Secured loans are offered against the security of an asset that you own. As such, their repayment is granted against the asset, and the lender allows the loan even when your eligibility qualifications are low. You can choose gold loans, loans against property, loans against securities and other forms of secured loans for your financial needs if you have suitable assets at your disposal which can be pledged against the loan.
Draw upon your credit card - Credit cards allow cash advances up to the credit limit. You can avail of funds from your credit card for your financial needs. Alternatively, you can make big-ticket purchases on your card and split the payment into EMIs that can be paid affordably.
Related Article - Find out which is better - a personal loan or a credit card loan
Use the BNPL feature - The Buy Now Pay Later (BNPL) feature allows you to shop and pay at a later date. Many BNPL companies allow considerable credit limits that allow credit transactions and pay for them at a later date. Use the BNPL feature, and you can avail of credit for your needs.

The bottom line

Financial needs might arise anytime, and in such cases, loans can help you tide over them. However, if you do not qualify for a loan, there are other ways in which you can arrange for the funds. So, use the options mentioned above and get the funds needed for your obligations.