Can you Apply for an Instant Loan without CIBIL?
If you have a low CIBIL score or no CIBIL score, you can still go ahead and apply for a personal loan or an instant loan. However, before you proceed to apply for a personal loan without CIBIL scores, you must make sure to follow the tips given below:
Income Proof: Would you lend large sums of money to someone repeatedly despite knowing that the person’s source of income is not stable and you won’t be repaid? For many of you the answer will be negative. The same situation can be applied to banks and lenders. To get an instant loan without CIBIL score, you must show legitimate proof to the banks and lenders that your income is sufficient enough to repay the loan back and on time without becoming a defaulter.
Low-Borrowing Amount: When you opt for a bigger loan amount, you must expect a higher rate of interest as well. However, this can vary from bank to bank. Now, if you have a low or no CIBIL score and you want to borrow a large sum of money, then the lender or the bank might not be too keen to sanction your amount. They will not be willing to sanction it because they might doubt your ability to repay the amount in the dedicated loan term. So, if you have no or a low CIBIL score, then you can opt to take a smaller sum of money with a lower interest rate.
Re-Check Your Credit Score: Under section 80C, you can claim the principal section of your EMI that you have paid for a year as a deduction. You can claim up to 1.5 lac. However, you must note that you can claim this deduction only if you do not sell your property within 5 years of acquiring it. If you do so, the deduction that you previously claimed will be added to your income in the year in which you have sold your property.
Apply for a Loan with a Co-applicant: If you wish to apply for a personal loan without a CIBIL score or with a low CIBIL score, then you can increase your chances of getting your loan approved with a simple method. You can get a co-applicant, who can be someone from your family. Banks or lenders will check your co-applicant’s income and his/her ability to repay the loan amount. Once your co-applicant meets the requirements, then your loan will be approved.
Get a Guarantor: If you have no CIBIL score and you want to get a loan, then you can ask one of your family members to be the guarantor. If your guarantor has a good CIBIL score, then your loan approval process will not be extremely difficult.
NA or NH in Your Credit Report: NA or NH on your credit report means no credit activity in the last 36 months. You can speak to your lender about your credit inactivity and get your loan approved. In such a case, you may be charged with a high-interest rate.
Collateral-Based Loans: If you wish to get a personal loan or instant loan without a CIBIL score, then you can opt for the collateral-based types. For collateral-based loans, you will have to pledge your assets such as property, house, FD, and so on. If you are unable to repay your loan, then the bank or the lender can seize your submitted asset.
Now that you know what tips to follow, you go ahead with your loan application.
How to Have a Good CIBIL Score?
To have a good CIBIL score, you must not be a loan defaulter. It means you must pay your debts on time and have a good credit history. You must also not use too much credit or frequently keep applying for new credit cards. Apart from these, you must also make sure to not take many unsecured loans. If you fulfill these requirements, then you can expect your credit score to be above 750. And once you score high on CIBIL, you can apply for any type of loan you want and fulfill all your requirements.
Instant Loan without CIBIL - FAQs
A CIBIL score is the credit score of a consumer. It is a 3 digit number that shows the consumer’s credit history and profile. The score depends on the consumer’s credit behavior which is based on the borrowing and repayment of previous loans. These details are shared by banks and lenders with CIBIL frequently. The score is set as per the details found on your CIBIL report. It is also based on your loan accounts, payment history, outstanding amounts, etc. The score starts from 300 and ends at 900. If your score is somewhere near 900, then you can get any loan approved without difficulty. Usually, a score above 750 is considered a good score.
This score is checked by banks and lenders to assess your financial behavior and whether you will be able to repay your debts if you take a new loan. So, your past financial habits will play a significant role in securing your present and future requirements. Your CIBIL score will display your credit-worthiness. Your CIBIL score is one of the major factors that is taken into consideration by banks and lenders before they approve of your loan application and sanction the amount.
As already mentioned previously, CIBIL score starts from 300 and goes up to 900. If you have a high CIBIL score, rest assured that you will get loans instantly and with reasonable interest rates. If you have a bad CIBIL score, you might find it challenging to get a loan instantly. If your score is between 300 to 699, then it is considered a bad CIBIL score. If your score is between 750 to 900, then you won’t have any difficulty in getting a loan, as it is considered to be a very good CIBIL score.