Instant Loan without CIBIL Score
A good CIBIL score is necessary to avail of a loan on favourable terms and conditions. But, what about those who have never attained a credit facility will not have a CIBIL score? Or those who have poor CIBIL scores but need instant cash? This is where knowing about an instant loan without CIBIL score comes in handy. Read on to know how to avail of a loan without a credit score.
How to Avail an Instant Loan without CIBIL Score?
Here are a few options you could consider to get an instant personal loan without credit score:
1. 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.
2. 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 loan.
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.
3. 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 cash 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.
4. 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.
5. 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.
Also Read
How to Calculate Your Personal Loan EMI?
It is important for you to calculate your monthly repayment obligations as it helps in managing your finances. You can calculate your personal loan EMI in two ways, either through manual calculations or with the help of an online EMI calculator.
For manual calculation, the formula for calculating personal loan EMI is:
EMI = P × r × (1 + r)^n/((1 + r)^n – 1)
Here, P= Loan amount
r= interest rate
n= loan tenure in the number of months
Manual calculations can be time-consuming and prone to mathematical errors. An online personal loan EMI calculator is a much better proposition as it provides the EMI amount within seconds. All you have to do is insert the loan amount, tenure and interest rate.
Check Your Personal Loan Eligibility
Loan Amount
Rate of Interest (P.a)
%
Loan Tenure (Months)
Monthly EMI
0
Total Interest
Total Amount
How to Apply for an Instant Loan without CIBIL Score?
Here is the step-by-step guide you need to follow if you apply for an instant cash loan from Navi:
Step 1: Download the Personal Loan App
Download the Navi app
Step 2: Assess your eligibility
Enter basic details like your name, address and PAN and check your eligibility
Step 3: Enter loan details
Provide loan details like loan amount and preferred tenure
Step 4: Complete KYC verification
Once our representative gets in touch with you, complete the video-KYC with your PAN card
Step 5: Link your bank account
To set up auto-pay, link your bank account and receive the money instantly
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.
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 Cash Loan. With Navi, you can get personal loans up to Rs. 20 lakh at attractive rates starting at 9.9% p.a. Download the Navi app now to apply!
FAQs
Ans: CIBIL score is a three-digit number which reflects your credit history, rating and report. The number ranges from 300 – 900. A CIBIL score closer to 900 reflects a higher credit rating and good repayment history and vice versa.
Ans: Any CIBIL score below 750 will make it difficult for the loan application to receive sanctions or approvals for credit. But, if the CIBIL score is below 650, most financial institutions don’t agree to sanction loans.
If you have no previous record of borrowing money, you will have no CIBIL score. For a credit history of fewer than 6 months, you will have an NA (non-applicable) score. If there is no history available, you will get an NH (no history) score.
Ans: A CIBIL score below 650 is considered to be a bad credit score. It indicates poor credit history and inability to repay loans on time.
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: 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.
Before you go…
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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