Finding yourself in debt can be an extremely stressful situation. Between owing money on credit cards, personal loans, or high-interest payday loans, the debt can quickly snowball out of control.

When this happens, your first instinct may be to visit your bank to apply for a debt consolidation loan. However, if you have bad credit or a low income, you may not qualify for additional funds from traditional banks.

So what can you do if you need money but the bank declines your application? Thankfully, there are specialized online lenders like who work with borrowers who banks reject.

Here are your top options to get money in debt in Sri Lanka even if the bank says no:

Get a Personal Loan from an Online Lender

Your best option is an online personal loan from alternative lenders like Loanplus. Unlike banks, online lenders utilize advanced technology and data sources to evaluate creditworthiness.

They can extend credit to borrowers based on more than just a credit score. Factors like education, employment history and savings/assets provide a more holistic view.

Benefits of using an online lending platform include:

  • Quick loan decision making and disbursal
  • Higher approval chances for low credit score or low income borrowers
  • Competitive interest rates
  • Loans up to LKR 5 million

As long as you pass eligibility criteria like being a Sri Lankan citizen over 21 with steady employment income, you can qualify for substantial funds.

The money can be used to consolidate expensive payday loans or credit cards into one manageable monthly installment. This can provide much-needed breathing room in your budget.

Ask Friends or Family for a Personal Loan

If you are uncomfortable seeking funds from an institutional lender, the next option is to approach friends or family for a personal loan.

The benefits here include:

  • Potential for 0% interest
  • Flexible repayment terms
  • No required credit check

The downside is that asking loved ones for money can negatively impact relationships if the loan goes unpaid. Make sure to draft a formal document that spells out the loan amount, repayment schedule, interest (if any), and late fees.

This protects both parties should disagreements arise down the line.

Use a P2P Lending Marketplace

Peer-to-peer (P2P) lending connects individual investors looking to earn interest with borrowers seeking loans. Popular P2P platforms include Lendster and Uplift.

P2P lending advantages:

  • Access to personal loans even with bad credit
  • Below-market interest rates
  • Fixed monthly payments

The P2P lending process involves signing up on the platform, filling out a loan application, and allowing investors to view your profile. Investors choose loans to fund based on risk tolerance and desired returns.

Once enough investors commit capital to fulfill your loan amount, the funds get disbursed to your bank account. You then repay the money directly to the lending platform according to an agreed upon schedule.

Take Out a Gold Loan

If you own gold jewelry, coins, or bullion, consider a gold loan from specialized lenders like SLOGOLD or Gold Plus Loans. They hold your gold as collateral while extending cash based on the gold’s market value.

Gold loans allow you to leverage the value of your idle gold assets while retaining ownership. Features include:

  • Loan amounts up to 85% of gold value
  • Tenures from 3 months to 3 years
  • Competitive interest rates from 1% per month

Limitations are that interest rates are still high, and failure to repay can result in auctioning off your gold holdings. But used judiciously, a gold secured loan provides access to fast cash.

Consider Crowdfunding

Crowdfunding platforms like GoFundMe, FundLanka or Indian site Milaap allow you to create loan campaigns to receive money from friends, family and even supportive strangers.

Campaigns share details on your financial situation, how much money you aim to raise, and what the funds intend to cover. Network connections and emotional storytelling drive donations.

Crowdfunding pros

  • Global pool of potential lenders
  • No credit requirements
  • Sense of community support

Just be aware that not all campaigns get fully funded. You must market extensively across social networks to gain momentum. Treat money raised as a loan, not a gift, by making repayment a priority.

Weigh a Credit Card Cash Advance

As a last resort, credit card cash advances provide immediate access to funds during financial hardship. Your credit card issuer disburses cash drawn against your available credit line.

Cash advance features generally involve:

  • Up to 85% of total credit limit
  • One-time or recurring withdrawals
  • Cash can be deposited to bank account

High fees and lump sum repayments make cash advances extremely expensive. Fees range from 2% to 10% on amounts withdrawn. And cash advance APRs often exceed 30%.

So while a credit card cash advance does provide funds when you have no other options, use caution. The debt can spiral out of control fast.

Summing Up: Where to Get Money in Debt in Sri Lanka

When traditional banks deny your loan application due to bad credit or other factors, innovative online lenders like Loanplus offer a lifeline. Their data-driven underwriting and quick approvals efficiently deliver funds.

Other alternatives like friends/family, p2p lending, gold loans or crowdfunding enable you to tap wider networks for financial help. But terms vary, so compare options carefully before proceeding.

Acting decisively when in debt can prevent minor cash flow issues from turning into major headaches down the road. Know where to access emergency funds so you can keep making progress on financial obligations.

Frequently Asked Questions

What are some tips to improve my chances of getting a personal loan in Sri Lanka?

Tips to increase chances of personal loan approval include paying down existing debts to reduce your debt-to-income ratio, maintaining consistent income from long-term employment, only applying for what you need and can afford to repay, and checking your credit report for errors before applying. Avoid applying for multiple loans in a short timeframe as this signals desperation to lenders and hurts your case.

Which lending companies offer personal loans to borrowers rejected by banks?

Top online lending platforms in Sri Lanka that specialize in near-prime borrowers rejected by traditional banks include Loanplus, Advance, Hippo Loans, and Uplift.

What documents do I need to qualify for a personal loan?

Typical documents online lenders require include your NIC, proof of income (recent pay stubs or bank statements), residential address proof, list of references, and sometimes additional financial statements.

How fast can I get loan approval and disbursal from an online lender?

The top platforms provide fully digital processes that can approve eligible applications in minutes and disburse funds to your Sri Lankan bank account via direct deposit within 24 hours in urgent cases.

What is the maximum loan amount I can qualify for if banks reject my application?

While each situation differs based on your financial profile, some online lenders are willing to extend up to LKR 5 million even to borrowers considered higher risk. Make sure to only borrow what you can comfortably afford to repay on time each month.