Get a Personal Loan Without a CIBIL Score

Do you immediately need a personal loan but don’t have a CIBIL score? If yes, then this article is for you.

Generally, while providing a personal loan, lenders first assess the CIBIL score of an applicant. It is one of the most important eligibility requirement checkers for the lenders during loan disbursal. A higher CIBIL score increases the creditworthiness of an individual. Getting an instant personal loan without a CIBIL score is now achievable as financial institutions now provide new programmes and deals to increase people’s access to financial services.

CIBIL Score:

A CIBIL check is performed to check the eligibility of a borrower without any collateral in a personal loan. It is a 3-digit number that represents the creditworthiness of an individual. The rating is managed by the Credit Information Bureau (India) Ltd. This rating is used to assess whether or not the borrower would be able to pay back the loan in full and on time. To calculate this rating, CIBIL collects credit information from all banks and financial organisations.

What does a low CIBIL Score Indicates?

Any CIBIL score below 700 is considered poor by the lenders. The range of a CIBIL score is 300-900. For lenders, there is a higher risk in disbursing personal loans as they are unsecured in nature, i.e. without a need for collateral. Nonetheless, a higher CIBIL score exemplifies a history of on-time payments and attests to a person’s trustworthiness.

However, it doesn’t mean that you can’t get a personal loan without a credit score or a CIBIL score. Even if you don’t have a CIBIL score, you can still apply for a personal loan.

No CIBIL Score History? Get a Loan Based on Income

It is highly possible for individuals those applying for their first loan that they don’t have a credit history. But if you can showcase a consistent source of your income, you can still get a personal loan at a favourable interest rate without a CIBIL score.

The lender may also have some qualifying criteria for such applications for personal loans without the CIBIL, which may include having a certain income level or having served the same employer for a certain period of time. Your suitability for a quick loan without a CIBIL score will be based on your income.

No Income Proof and No Credit Score:

If you don’t have sufficient income proof and also lack a credit history, then you can explore the following options for a personal loan:

Joint Loan:

If your partner has a good CIBIL score with income proof, you can apply for a joint loan. In a joint loan, the CIBIL scores of both applicants are considered. If you apply for a personal loan in your spouse’s name, then you can also get credit without a CIBIL score. With this method, you can get larger loans without a high CIBIL score and at the lowest possible interest rates.

Find a Guarantor:

In case you don’t have a partner and immediately need funds, then you can ask a member of your immediate family, i.e. your parents or a sibling. They will serve as a guarantor for your loan. However, to become a guarantor, they should also fulfil the eligibility criteria, which includes higher CIBIL score as well. This is a very frequent approach for those without a CIBIL score to apply for a personal loan.

Put Up Collateral:

A personal loan is unsecured in nature, i.e. borrowers don’t need to put up collateral, but this is when you have a credit history and a good CIBIL score. If neither is available, then you can offer collateral to the lender in place of the money. In India, gold is the most common collateral put up by applicants who don’t have a CIBIL score.

Without the CIBIL score, the collateral acts as security to offset the risk of default for the lender. As per the amount of your personal loan, you can put up any asset like land, a vehicle, gold, etc.

Key Takeaways:

While obtaining a personal loan without a CIBIL score requires more effort and research, it is completely achievable with the right approach. If you have consistent income proof, then things become easier; otherwise, you can follow any of the above-mentioned methods.

At Rupee112, we offer you an instant personal loan with minimal checks and physical document requirements. We disburse funds directly into your bank account in a minimum time.