The CIBIL score is usually the first thing lenders check when you are applying for a personal loan. There are times when the CIBIL score is enough to satisfy a borrower’s eligibility criteria for applying for a personal loan without providing a salary slip. To qualify for financial aid, the CIBIL score is a very important factor.
An individual’s CIBIL score is one factor that determines their creditworthiness, especially when it comes to applying for a personal loan. Approval of a personal loan without CIBIL is a slightly difficult process. So it is essential to understand “How to increase CIBIL score” or “How to Improve CIBIL Score” when applying for a personal loan. In this digital era, financial institutions have introduced new schemes on digital platforms to make their services more accessible to the general public.
What does a low or no CIBIL score mean?
A CIBIL score below 750 is generally considered a low CIBIL score. Personal loans are unsecured loans, not requiring collateral in return, they represent a greater risk to the lender because they are not secured by collateral. The key benefit of a good credit score is that it shows that the person has a history of making timely payments and is a testament to their creditworthiness. If you don’t have a good CIBIL score or don’t have proof of income, you can still apply for a loan as a bad credit borrower.
Here are some options you can consider:
- Improve your score if you have no income proof or a low credit score
It is important to note that the CIBIL score is dynamic and can change based on the latest information about the consumer’s credit history and debt repayment history. In another way, you could improve your credit score before applying for a personal loan without CIBIL to improve your credit score.
- Bad or no credit score with proof of income
People planning to apply for the first loan have to understand that they may not have much credit history, which makes it difficult to get a loan. There is a possibility of getting a personal loan without CIBIL. However, if you can show proof of a stable income, you will be able to get a good rate of interest. It is important to note that lenders may occasionally require certain eligibility requirements for applicants applying for personal loans without the CIBIL score, such as maintaining an income above a set level, being employed at the same company for at least one year, etc.
- Accept a high-interest rate if you have low eligibility
In some cases, it may be difficult to get a personal loan without CIBIL, but it is not impossible. Generally, lenders will charge a higher interest rate if a borrower does not qualify based on a CIBIL or income check. It is possible to accept the higher rate and be approved for the loan without a CIBIL or income verification check based on the loan tenure and repayment capability.
Personal loan with no credit score or with no income proof
For those who need funds immediately but don’t have a credit history or cannot wait to improve their score, or have no proof of income, there are several other options for you as well.
- Choose a joint loans
If your spouse has a good CIBIL score, you can apply for a joint personal loan without CIBIL. The CIBIL scores of both applicants are considered when applying for a joint loan. Taking a loan in your spouse’s name is another option for getting a loan without a CIBIL.
- Get a guarantor
You can ask your family, such as your parents, brother, or sister, to act as guarantors if you are applying for a personal loan without CIBIL. However, you must ensure that the person acting as guarantor has a good credit score.
- Place collateral
One of the best ways to obtain a personal loan without CIBIL is by offering the lender security such as FD, gold, etc. as collateral. When applying for an instant loan in India without CIBIL checks, gold is the most common collateral most applicants put up as security.
The lender will determine the value of the asset you own, and the maximum loan amount you may qualify for will be calculated based on the asset’s value. It is possible to apply for a personal loan without CIBIL. Today, borrowers have many options for obtaining a loan without a CIBIL check, as there are plenty of schemes and offer available in the market. Put some time, effort, and research into understanding “How to Increase CIBIL Score” or “How to Improve CIBIL Score” when applying for a personal loan without CIBIL.
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