How To Get Instant Loan Without CIBIL Score?

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.

What is a CIBIL Score?

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

How To Get an Instant Loan without CIBIL or Credit Score?

Here are a few options you could consider to get an instant personal loan without credit score:

1. Opt for a Joint Loan

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

2. Income Proof

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.

3. Find a Guarantor

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.

4. Loan Against Security or Collateral-based Loan

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.

5. Apply for a Lower Loan Amount

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.

How to Apply for an Instant Loan without CIBIL?

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.

Personal Loan Interest Rates with Low CIBIL Score

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.

What is a Bad CIBIL Score?

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

What is a Low or No 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.

Reasons for Low CIBIL Score

Wondering why your CIBIL score is low? These could be the primary factors:

• Missed EMIs: In case you have missed paying your credit card or loan EMIs more than once, your credit score could take a hit.
• Multiple loan applications: Every time you apply for a loan, the lender pulls your report to check your creditworthiness. This is called a hard enquiry. Multiple hard enquiries driven by frequent loan applications can pull down your credit score.
• High credit-utilisation ratio: Let’s say your credit card limit is Rs.1 lakh and you have already utilised Rs.80,000 from your credit limit. This suggests that you have a high credit utilisation ratio which could affect your credit score.
• Errors in CIBIL report: Any incorrect data recorded in your CIBIL or credit report, including loan default, active loan tracking error, etc., could have a negative impact on your credit score.

How to Improve CIBIL Score?

Consider these pointers to improve your CIBIL score:

• Make on-time repayments: Pay your EMIs on time. To ensure this, you can set up a standing instruction or auto-debit with your lender/bank. That way you won’t miss any repayments. Also, ensure that you have a sufficient balance in your account on the EMI due date to avoid any hassle.
• Maintain a healthy credit utilisation ratio: Utilise your credit card but utilise it wisely. The best practice would be utilising only 15% – 20% of your credit card limit.
• Check your credit score report from time to time: Keep a track of your credit report. In case you find any inconsistencies or mismatches, like an error in active loan status, write to the CIBIL or the concerned credit bureau office to get it corrected.

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

Final Word

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.

FAQs on Personal Loan with Low CIBIL Score

Before you go… 

Looking for instant 🚀 personal loans 24*7 anywhere, anytime? Install the Navi app now!