Is your CIBIL score below 700? Are you having trouble getting a loan? It’s crucial to have a good CIBIL score to get better deals on loans and credit cards. However, it may take 1-2 years to improve your credit score. It could become problematic when you need an instant loan with a low CIBIL score or without a CIBIL score. What do you do in such a situation? Can you get an instant loan without a low CIBIL score or with a low CIBIL score?
In this article, we will guide you on ways to avail of instant personal loans without CIBIL, and with low CIBIL scores.
When you apply for any loan, lenders first check your three-digit credit score before approving your loan application. This is to assess whether the borrower has the repayment capacity to pay off the loan amount within the loan tenure. CIBIL or Credit Information Bureau Limit is a credit bureau that maintains the data, such as the credit history of all the individuals and businesses. Banks and financial institutions share their credit data with CIBIL. Based on this data, a CIBIL score of a particular individual is determined. Through this score, lenders assess the creditworthiness of the borrower before offering them a loan.
A CIBIL or credit score of 750 or more is considered a good CIBIL score, whereas any score below 600 is considered poor. Also, having a good credit score could help you fetch better deals on loans, such as lower or preferential interest rates or higher loan amount, to name a few.
So, you must be wondering how to get an instant loan without credit score? Well, it’s difficult but possible. Read on to know how.
Also read: Apply For Personal Loans From NBFCs
Here are a few options you could consider to get an instant personal loan without credit score:
If your spouse’s CIBIL score is good (above 750), you can consider taking a joint loan. Under a joint loan, the CIBIL score of all the co-applicants (both husband and wife, in this case) will be considered. You can also take a loan in your spouse’s name. This could help you in getting a loan at the best available interest rate, even with a low CIBIL score. However, a joint loan is usually applicable for home loans.
For instant personal loans, you can ask your spouse or any of your relatives having an above-average CIBIL score if it’s feasible for them to take a loan for you. You can repay the amount to your relatives at their convenience.
Also read: 5 Benefits Of Taking A Joint Home Loan
It could happen that your CIBIL score is low due to an error persisting in your credit report. You can correct them by writing to the credit bureau. However, if you need a personal loan instantly, you could use your income proof to get a loan. Some lenders prefer applicants having a fixed monthly income (mostly salaried individuals) while approving loan applications, even if they have a low CIBIL score. Of course, there could be downsides to this like higher interest rates and lower ticket-size loans.
If you are not getting a loan or have a zero credit history, you can ask your parents or siblings to be your guarantor. Make sure the person whom you are adding as a guarantor has a good CIBIL score. This method is generally useful when you want to avail of education or any kind of secured loan. Again, this works mostly for home loans. For personal loans, you can try the instructions given in the first pointer.
Apart from the other options mentioned above, a loan against security is another viable option. Thus, you can apply for a loan against your house, fixed deposits, eligible insurance policies, mutual funds or shares, gold, PPF, credit cards, etc. Among these, a loan against fixed deposits is a common way of getting a loan without a CIBIL score. However, opt for these only if you are sure about your repayment capacity.
If you don’t have a credit history and you’re applying for a higher loan amount, your application might get rejected. To play safe, apply for a lower amount – say Rs. 50,000 to Rs. 1 lakh. If you have a fixed monthly or yearly income, your loan application could get approved by the lender. Usually what happens is lenders don’t see smaller loan amount applications as a threat. Lenders start scrutinising and digging deep into your CIBIL score when you apply for a higher loan amount.
Loan eligibility criteria could vary from lender to lender. However, if you’re applying through Navi for an instant loan, here’s what you should do:
Step 1: Download the Navi app from Google PlayStore or App Store
Step 2: Enter your mobile number to get OTP
Step 3: Fill in your basic details – Name, DOB, PAN, Profession and Total Monthly Income
Step 4: Check loan offer
Step 5: Select loan amount and tenure
Step 6: Link your bank account
Upon verification, the loan amount will be disbursed in just a few minutes based on your eligibility. With Navi, you could also get an instant personal loan without income proof.
Now here’s a pointer that you need to consider. If you don’t have any credit score or CIBIL score, your loan application might get rejected. So, in such a situation, it’s best that you ask your spouse or siblings to apply for the loan. You can repay the loan based on the agreement you have with the loan applicant i.e. your spouse, siblings, or relatives.
Check out the various banks and NBFCs that offer personal loan in Ahmedabad:
Banks/NBFCs | Interest Rate (p.a.) | Processing Fee |
Navi Personal Loan | 9.90% onward | Check with the lender |
HDFC | 10.50% onward | Up to 2.5% |
Yes Bank | 13.99% onward | Up to 2.5% |
Kotak Mahindra | 10.25% onward | Up to 2.5% |
Axis Bank | 12.50% onward | Check with the lender |
IndusInd Bank | 11% onward | 2.5% and above |
IDFC FIRST | 12% onward | Up to 3.5% |
Home Credit | 19% onward | Up to 5% |
Aditya Birla Capital | 14% onward | Up to 2% |
IIFL | 24% | 2% onward |
Important: This table is for educational purposes only and the final rate offered is solely at the concerned lender’s discretion. Navi doesn’t take responsibility for any interest rate changes that may occur in the due course of time.
The CIBIL score ranges from 300-900. Typically, a credit score between 300 and 650 is considered a bad or low CIBIL score. Banks tend to offer loans to individuals falling within the 750 –900 range. Your credit score depends upon your repayment history, credit card utilisation (a high credit card usage reduces your score), the number of times you apply for a loan, loans for different purposes (this helps in improving your CIBIL score), etc.
A high CIBIL score indicates cheaper and instant loans, while a low or bad CIBIL score could mean the opposite.
Also read: How To Improve CIBIL Score
When your CIBIL score drops below 750, that’s when the problem starts. Banks and NBFCs hesitate to offer loans to individuals falling in this category, and even if they do, the interest could be 0.5%-2% higher. So, if a person with a good CIBIL score is offered a loan at an 8% p.a. interest rate, the other person with a low CIBIL score will be offered the same amount of loan at 10-11% p.a. And if the score falls below 600 (mainly due to defaults made in paying off the previous loans), lenders might not offer any loan at all.
Wondering why your CIBIL score is low? These could be the primary factors:
Consider these pointers to improve your CIBIL score:
Having a healthy credit score could help you enjoy better deals on your loans. Lenders always prefer customers having a credit score above 750.
Also read: How To Plan Loan Repayment On-Time: Different repayment options
Apply for a personal loan without a CIBIL score only when you need it. It’s always a disadvantage having a low or zero CIBIL score. So, the best practice would be to improve your credit score and get it closer to 750. It would be easier to get an instant loan if you have an above-average credit score.
In case you’re looking for instant personal loans, you could try Navi Personal Loan. With Navi, you can get personal loans up to Rs. 20 lakh at attractive rates starting at 9.9% p.a.
Ans: Getting a personal loan with a low CIBIL score is quite challenging. There are certain NBFCs such as Navi that offer a loan without asking for any credit score. But with proper bank statements and sufficient funds to show the lenders that you are eligible for loan repayment, you can apply for a loan.
Ans: Any income proof to support your loan repayment eligibility, applying for a loan with a salaried co-applicant with a good credit score, and applying for a low amount may fetch you the personal loan if you have a low credit score.
Ans: Personal Loans can start from as low as Rs. 10,000 and can range up to Rs. 20 lakh. The credit score adds to the amount of personal loan you can avail of. But with certain NBFCs, you can avail of a personal loan up to Rs. 20 lakh with a low CIBIL score.
Ans: An income proof to support your loan repayment eligibility would ease the process a little bit. But with Navi, there is no need for any documents apart from Aadhaar and PAN to apply for a personal loan.
Ans: Loan eligibility criteria vary from lender to lender. However, one of the most important parameters lenders checks is your credit score. Though you could still get an instant loan without CIBIL, it’s always recommended to have a good CIBIL score to enjoy a hassle-free loan application process.
Ans: Traditional banks might reject your loan application if your credit score is 550. However, you can try getting a loan from NBFCs at a higher interest rate. If you have more than average monthly income and meet other eligibility criteria, it shouldn’t be too difficult to secure a loan with a low CIBIL score.
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