Your CIBIL score is really important if you want to take any form of credit, especially a personal loan. A high CIBIL score increases your chances of loan approval. However, it is possible to get a personal loan without a CIBIL score. We will discuss the ways on this page.
Read on to know more.
You might be new to credit, or you might have a bad credit history due to hiccups in your financial life. Here are the options to get a personal loan without a credit score -
If you don’t have a CIBIL score, the best way for you to get a loan is to opt for a secured loan. A secured loan is given to you against collateral. Property, jewellery, fixed deposits, etc can act as collateral. They provide security to the lender and make it easier for them to trust you.
However, if you are unable to repay your loan, then the lender can seize your submitted asset and sell it to recover the loan amount.
Just like secured loans, a secured credit card is issued against a fixed deposit. In most cases, you can get 90-100% of the fixed deposit amount as your credit limit. This can help you get access to credit when you have a low or no CIBIL score. This can also help you to build your credit score, something that we will discuss in the next point.
When you don’t have a credit history, your aim should be to build it slowly and steadily. You cannot improve or build your credit score overnight; however, if you are consistent and take small steps, you will see an improvement anywhere within 4 months to 1 year, depending on where you start. There are many steps you can take for this -
If you have no credit history or a very low credit score, it will be hard for you to get any credit product approved. That will also limit your other paths to show that you are a reliable borrower.
Thus, you can take a small loan, for eg, of ₹5,000. This amount will depend on your lender’s criteria. Generally, such small loans are given very easily. You can then make payments on time, and slowly your credit score will improve.
A guarantor is someone who vouches for you when you cannot meet the eligibility criteria by yourself. Your guarantor must have a high credit score to be credible. However, you should make your payments on time so the guarantor’s credit score is not affected.
A co-applicant is a friend or a family member who signs the loan agreement with you. They are equally responsible for repaying the loan. If you find an earning co-applicant, or someone who has a higher credit score, getting a loan might be easier for you.
Moneyview's lending partners use a unique credit rating system that allows even those with a relatively low CIBIL score to avail of advantageous personal loans. As long as your CIBIL score is 650 or above, you can still get an instant loan through us.
You have to take regular steps to have a good CIBIL score. Maintaining your credit score is just as important as growing it once. Here are some steps you can take to maintain your credit score -
Regularly monitor your CIBIL score, report any disputes you find, and get them rectified
Don’t apply for multiple loans at the same time, or if one has been rejected
Keep your credit utilization ratio low, preferably under 30%
Maintain a good credit mix of credit cards, secured, and unsecured loans
Pay all your EMIs on time and check if the information is updated in your credit history
Don’t close the older credit cards, as that may reduce your credit age
Pay your credit card bills in full every month by the due date
If you are unable to pay your credit card bill in full, pay the minimum due amount by the due date
Plan your EMIs before applying for a loan using EMI calculators
Getting an instant or unsecured loan might be hard if you don’t have a CIBIL score. A lower credit score reflects a higher risk for the lenders. Thus, you should work on your credit score and monitor your history closely.
However, there are multiple ways for you to get your first loan and build your credit score from there. Partner lenders at Moneyview give personal loans even if you have a CIBIL score of just 650. To know more, download the app or apply for a loan on the website.
No, a no CIBIL score is not the same as a bad CIBIL score. If you have never taken a loan or a credit card before, credit bureaus will not have enough information about your financial behaviour to assign a score to you.
However, having a bad credit score signifies that you have taken credit but were not making the payments on time. That makes you a high-risk borrower. Both make it hard for you to get a loan, but a bad CIBIL score is much worse than being new to credit.
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Disclaimer
The starting interest rate depends on factors such as credit history, financial obligations, specific lender's criteria and Terms and conditions. Moneyview is a digital lending platform; all loans are evaluated and disbursed by our lending partners, who are registered as Non-Banking Financial Companies or Banks with the Reserve Bank of India.
This article is for informational purposes only and does not constitute financial or legal advice. Always consult with your financial advisor for specific guidance.
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