The importance of a high CIBIL score cannot be underestimated if you need any form of credit such as personal loans. Higher the CIBIL score, better are the chances of availing an affordable loan. However, what if you have a low CIBIL score or no CIBIL score at all? Can you still get an instant loan without CIBIL score or a personal loan without CIBIL scores?
Read on to know more.
If you are new to credit, chances are that you may not have a CIBIL score. The good news is that, despite this you can still avail a personal loan.
However, before you proceed to apply for an instant loan without CIBIL scores, the following pointers must be kept in mind -
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 on time.
Amount Being Borrowed
When you opt for a higher loan amount, you must expect a higher rate of interest as the risk for the lender increases.
Now, if you have a low or no CIBIL score and you want to borrow a large sum of money, then the lender might not be too keen to sanction your amount as they are unaware of your creditworthiness and will doubt your ability to repay the amount on time. So, if you have no or a low CIBIL score, you may be able to avail a loan but the amount will be low.
Apply with a Co-applicant
If you wish to apply for a personal loan without CIBIL scores or a low CIBIL score, then you can increase your chances of getting your loan approved by applying with a co-applicant.
The lender will check your co-applicant’s income and his/her ability to repay the loan amount. If your co-applicant meets the requirements, your loan will be approved.
Get a Guarantor
If you don’t have a CIBIL score and you want to get a loan, then you can ask one of your family members to be a guarantor. If your guarantor has a good CIBIL score, then your loan approval process will not be 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, explain the reasons for it, and get your loan approved. However, in such a case, you may be charged a high rate of interest.
If you wish to get a personal loan or instant loan without a CIBIL score, then you can opt for secured loans, i.e., loans that require collateral such as property, jewelry,FD etc.
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. To know more about loan recovery processes, check out our article on the same.
At Money View, we use a unique credit rating system that allows even those with a relatively low CIBIL score to avail our advantageous personal loans. As long as your CIBIL score is 600 or above, you can still get an instant loan from us.
Follow the steps given below to avail an instant loan with low CIBIL scores from Money View -
Choose your loan plan
Based on the options provided, select the loan amount and repayment term of your choice
Provide Necessary Documents
Upload the required documents online easily and effortlessly
Avail Loan Instantly
After your documents are verified and loan agreement is submitted, the loan amount will be credited to your bank account within 24 hours
To know more about our eligibility criteria, documentation requirements, and fees and charges, click here.
To have a good CIBIL score, the most important step is that you must not be a loan defaulter. 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 not take many unsecured loans. A healthy mix of secured and unsecured credit is ideal.
If you fulfill these requirements, then you can expect your credit score to be above 750. And once you have a high CIBIL score, you can apply for any type of loan easily. Here are a few more benefits of having a high CIBIL score.
Getting an instant loan or personal loan without CIBIL is not easy as one’s creditworthiness is an important eligibility criteria. Lower your CIBIL score, higher is the risk for lenders which is why even if loans are disbursed, it will be at higher rates of interest and lower repayment terms. Therefore it is essential to start building credit if you have none or increase your CIBIL score if it is low. For more tips on how to increase your CIBIL score, check out this blog.
Ans: A CIBIL score is the numeric representation of an individual’s creditworthiness ranges from 300 to 900.
The score depends on the consumer’s credit behavior. These details are shared by banks and lenders with CIBIL frequently. It is also based on your loan accounts, payment history, outstanding amounts, etc. 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.
Ans: CIBIL scores generally range from 300 to 900 and any score above 750 is considered to be ‘good’ which means that you can avail loans easily and at affordable rates of interest. However, scores lower than this is not ideal, especially those below 600. You may find it difficult to get loan approval and even if you do, it will be at high interest rates and low repayment terms.
Ans: No, you cannot. While those who are new to credit and do not yet have a CIBIL score can avail loans at higher rates of interest, if you do not have income proof you cannot avail personal loans. This is because the lender needs proof of your ability to repay which is through your proof of income.