Instant Loan without CIBIL
Know ways to get approval on your instant loan without CIBIL score
- A good CIBIL score is an important yardstick to determine your creditworthiness.
- Many lenders refrain from giving loans to those with a low credit score.
- You can still avail of a Personal Loan without CIBIL Score.
- If your credit score is low, then collateral serves as a security deposit for lenders.
- You should maintain a credit score of 700+ to avail of a loan at lower interest rates.
Picture this – You are in urgent need of a loan to fund your son's university fees. You consider the option of applying for a Personal Loan. But you realise that your CIBIL score was a dismal 500 because of a credit card default some time ago. Now, your lender insists you should have a better CIBIL score to qualify for a loan. What do you do in such a situation? Are you aware that you can still get an instant loan without CIBIL score? Let us understand what CIBIL score is and how you can obtain that loan you so need.
What is CIBIL score?
CIBIL, one of the top credit bureaus in India, maintains a credit report of customers. Based on the credit report, it assigns a three-digit numeric summary that reflects their credit health. The score, from 300 to 900, identifies the ability of a customer to repay the loan and is known as a CIBIL or credit score.
Instant Loan Without CIBIL Score
Even though CIBIL Score is mandatory, there are still several options available to get your Personal loan without CIBIL Score required by lenders.
Provide Income Proof
You need to prove to the lender that you will be able to repay the loan. Banks may consider your loan application if you have a stable monthly salary or steady income. Your salary slips or bank statement will give your lender the confidence to grant you the loan without CIBIL score.
Consider Collateral-based Loans
Typically, Personal Loans do not require you to furnish collateral. However, if your credit score is low, collateral serves as a security deposit for lenders. You can pledge your property, jewellery or any other valuable asset in lieu of the loan amount.
Apply with a Co-Applicant or Get a Guarantor
If you apply for a loan with a co-applicant who has a steady source of income and a good CIBIL score, your loan application may be approved. The other option is to get a guarantor for your loan amount.
Get NA/NH on your credit report
The History not Available (NA) or No History (NH) on your credit report means that there has been no previous credit activity or credit in the last 36 months. You can request your lender to issue an NA or NH on your credit report. If the lender is willing, you can get a Personal Loan at a higher rate of interest.
Apply for a lower loan amount
It is best to go for a lower loan amount as the lender may doubt your ability to repay the loan or charge high interest. This ultimately improves your chances of getting the loan approved.
Getting an instant loan without CIBIL is possible. However, it is best to ensure you maintain a healthy CIBIL score of 600+ regularly. Pay off your debts and limit credit utilisation to improve your CIBIL score.
Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.