How to Get an Instant Loan Without CIBIL?

09 July 2024
How to Get an Instant Loan Without CIBIL?

Getting an instant loan without a CIBIL score can be difficult. Nevertheless, with the right strategy, you can easily avail yourself of one. Whether you have faced financial setbacks in the past or if you are just starting your credit journey, there are several practical steps you can take to improve your chances of loan approval. 

By understanding the requirements and exploring alternative lending options, you can increase your chances of getting an instant loan even without a CIBIL score. Scroll through this blog to learn how to get an instant loan Credit_SEO-07.png

Different Ways to Get Loans Without CIBIL

The following are the different ways through which you can get an instant loan without CIBIL:

  • Apply for a Small Loan

If you are new to credit and do not have a CIBIL score, it is wise to begin with a small loan amount relative to your income. Applying for a smaller loan makes it easier for the bank to believe you can manage the EMIs within your earnings. This increases the likelihood of loan approval. 

Once you successfully repay your first loan on time, you can apply for a larger loan, benefiting from your improved CIBIL score. Therefore, opting for a small loan without a CIBIL score is one of the simplest ways to secure instant loan approval.

  • Apply for Collateral-Based Loans 

If you apply for a loan without a CIBIL score or have bad credit, offering collateral can be a viable solution. You can pledge a valuable asset to secure the loan. This type of secured loan involves using collateral to back the loan. Sometimes, the collateral might be the asset you are purchasing with the loan. For example, if you are applying for a home mortgage, the property itself will serve as the collateral. The same principle applies to car loans.

With secured loans, you are borrowing money by offering an asset as a guarantee. This makes the loan a safer investment for lenders. You can secure loans against various assets, such as gold, property or other valuables.

  • Applying for Loans Through NBFCs

Non-banking financial companies (NBFCs) provide more favourable loan terms than traditional banks. If you have a low credit score, you can still apply for an NBFC loan without a CIBIL score. The paperwork required for an NBFC loan is minimal, making the process simpler.

Unlike banks, NBFCs do not view a low credit score as a major issue. They adopt a more practical approach to evaluating a candidate's eligibility and repayment capacity. This tailored assessment allows NBFCs to determine an applicant's suitability for a loan accurately. Moreover, before taking a loan from an NBFC, thoroughly assess your financial situation to ensure you can meet the repayment obligations.

  • Apply with a Guarantor

Having a trustworthy family member as your guarantor can significantly improve your chances of securing an instant loan without a CIBIL score or proof of income. A joint loan, where your guarantor supports your application, is often the best approach in such situations.

Even with a low credit score, your guarantor's good credit history and income proof can bolster your eligibility for loan approval. Remember, timely repayments are crucial to prevent your guarantor from assuming responsibility for any defaults. Using a guarantor ensures a smoother loan approval process while allowing you to strengthen your credit profile.

  • Opt for NA or NH on Your Credit Report

If you have a poor credit history, securing a personal loan without CIBIL score can be challenging. However, if your credit report shows NH (No History) or NA (History Not Available) for the past 36 months, it indicates no credit activities during this period. This lack of credit history means there is no recorded risk associated with your credit behaviour.

When lenders review such reports, they understand the absence of credit transactions. In many cases, they consider these applications, though you might face a higher interest rate. It is essential to discuss your credit inactivity openly with the lender to increase your chances of approval.

The Bottom Line

Overall, obtaining an instant loan without a CIBIL score is indeed daunting but achievable with the right approach. To apply for loans without a CIBIL score or with bad credit, choose any of the methods mentioned above. You must ensure you accurately fill out the loan application form and provide correct information to avoid rejection of your loan application. 

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