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| May 22, 2023


Lenders often assess the applicant's CIBIL score first when they get a personal loan application. Even when a borrower applies for a personal loan without providing wage evidence or a pay stub, a high CIBIL score serves to meet the eligibility requirements. The CIBIL score is obviously very significant for anyone searching for financial help. While applying for a personal loan, which is an unsecured loan, the CIBIL score determines a person's creditworthiness. Getting an immediate loan without the CIBIL score is now achievable, nevertheless, as more and more financial institutions provide new programmes and deals to increase peoples' access to financial services.

What is the CIBIL Score?

A CIBIL check is performed to assess an applicant's eligibility for any loan without collateral. The credit score, also known as the CIBIL score, is a three-digit numerical assessment of a person's or a company's creditworthiness. The Credit Information Bureau (India) Ltd manages this rating, which is used to determine whether a borrower will be able to repay the loan in full and on time. For calculating this score, CIBIL receives credit information from all banks and financial organisations. A borrower who applies for a personal loan without providing income documentation such as a pay stub may still be approved based on their CIBIL score. But, the query is raised: Is it possible to obtain personal loans with a poor CIBIL score?

What Does a Low CIBIL Score Mean?

Any CIBIL score below 750 is typically regarded as having a poor CIBIL score, which ranges from 300 to 900. Personal loans carry a higher risk for the lender because they are unsecured loans without a need for collateral. Nonetheless, a high credit score demonstrates a history of on-time payments and attests to a person's trustworthiness. This does not imply that obtaining a long- or short-term loan is impossible without the CIBIL score. Even if you lack a credit history, income documentation, or both, you may still apply for a loan even with a low CIBIL score. Here are some choices to think about:

A Low Credit Score and No Income Proof: Improve Your Score

The CIBIL score is dynamic and fluctuates based on an individual's most recent credit report and debt repayment standing. This implies that you can focus on raising your credit score prior to submitting a loan application. A credit score increase of several hundred points can be seen after just six months of on-time bill and EMI payments. Other variables that might improve your CIBIL score include having a variety of loans in your name, having a low credit card utilisation rate, retaining old credit accounts, etc. After your scores rise, you may apply for a personal loan based only on your score without providing income proof.

Having Income Proof but No/Bad Credit Score: Get a Loan Based on Income

It goes without saying that those applying for their first loan could not have a credit history. If you can provide evidence of a consistent source of income, you may be able to get a personal loan at a favorable interest rate without the CIBIL. The lender may occasionally have qualifying restrictions for these applications for personal loans without the CIBIL, such as having an income over a specific threshold or working for the same employer for a certain amount of time. Your eligibility for a fast loan without a CIBIL score will be based on your income.

Low Eligibility: Accept a Higher Interest Rate

Without CIBIL and income verification checks, getting a personal loan might become somewhat challenging but not impossible. In general, the lender may request a higher interest rate compared to others if a person cannot qualify based on a CIBIL or income check. You can choose to accept the higher rate and get a loan without a CIBIL or income check depending on the loan length and your ability to repay the loan. Nonetheless, you will need to shop around for a lender with adaptable requirements for the same.

No/Bad Credit Score and No Income Proof

There are various solutions available to you as well if you lack a credit history, are in urgent need of money, and cannot spare the time to raise your rating.

Choose a Joint Loan

If your partner has a high CIBIL score, you can apply for a joint loan without one. The CIBIL scores of both applicants are taken into account when one applies for a combined loan. Taking out a loan in your spouse's name is an additional way to obtain credit without a CIBIL score. By doing this, you will also be able to get larger loans without a high CIBIL score, such as a home loan, at the lowest possible interest rates.

Find a Guarantor

If you are having problems obtaining a long-term loan or a short-term loan because you lack a credit history and a CIBIL score, you can ask a member of your immediate family, such as your parents or a sibling, to serve as a guarantor for the loan. You must, however, check the score of the guarantor to make sure they are qualified. This is the most frequent approach for those without a CIBIL history to apply for a personal or student loan.

Consider Putting up Collateral

The main feature of a personal loan is that there are no limitations on the end use of the money. One of the best ways to get a personal loan without a CIBIL and income proof is to offer the lender collateral in lieu of the money. In India, gold is the most common collateral put up by applicants to avail an instant loan without CIBIL checks. Gold loans have become very common these days and as the money can be used for any purpose, more and more people are opting for this type of instant loan. Without the CIBIL score, the collateral acts as security to offset the risk of default for the lender. Depending on your need, you can put up any asset like land, a vehicle (not already hypothecated under a separate loan), gold, etc. The value of the asset will be ascertained by the lender and the maximum loan amount (which will be slightly less than the market value of the asset) that you are eligible for will be calculated.

Even without a CIBIL score, a loan does not have to be impossible to get. With so many schemes and offers available in the market today, borrowers have many options for getting a loan without a CIBIL score check. So, if you are looking for a loan without a CIBIL score or income proof, put in some time and look around to find the best option.





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