Getting a loan in India is a very simple process these days. Many lenders offer digital loans that are available instantly. The paperwork is very simple and the time taken to apply for the loan is also very less. You can get your personal loan approved in just about 10 minutes. In most cases, you need to have a good CIBIL score to get instant loan without CIBIL. But what happens when your CIBIL score is low or non-existent? Can you still hope to get an instant loan without CIBIL? The answer is yes! There are some ways in which this is possible. Take a look at this article to know more.
Table of Contents
ToggleWays to get an instant loan without CIBIL check
- Apply with collateral – If you have a low CIBIL score that you don’t want to be checked, you can apply for a loan against collateral. Some good options for you would be a loan against property and gold loan. Some other options could also be a loan against a fixed deposit or a loan against your life insurance policy. When you apply for such loans, your CIBIL score is not checked and you get the loan instantly too.
- Opt for a lower loan amount – Your next option is to opt for a low loan amount. If you borrow INR 50,000 or less, you don’t even have to give your PAN details to the lender. This prevents your CIBIL score from being assessed and brings the loan amount to your bank instantly.
- Correct your credit score – A good option is for you to make amends to your credit score before applying for the instant loan without CIBIL. You can repay some old dues or clear your credit card bills. These measures would surely reflect well on your credit score and you may even have a score high enough to impress the lenders into offering you the instant personal loan that you want.
- Show a good source of income – The lenders check the credit score because they want an assurance that you would repay the loan amount in totality. When your credit score is low, the lenders do not get this assurance and hence reject your application. But if you have a high and steady income, show that to the lender and convince them that you can afford the EMIs each month. Your salary slip can work as an assurance and help you in securing the instant loan without CIBIL in a quick and easy way.
- Opt for an NBFC – Opt for a new-age fintech company over a traditional bank. The banks are more conservative and insist on scrutinising every aspect of your credit report. The NBFCs are more customer-friendly and you have a better chance of getting your loan approved here.
Following these tips can help you to get an instant loan without CIBIL score being scrutinized too much. However, you must be prepared to pay a higher rate of interest, as the personal loan interest rates are much higher for those who do not have a good credit score as compared to those who do. This is also why you should borrow only as much as you need so that you can clear the loan smoothly without getting any issues or problems.
Why is the CIBIL score so important?
The CIBIL score, or your credit score, reflects your financial wellness. If you have a credit score that is 750 or higher, it shows that you are very responsible with your money. When you pay your EMIs, credit card bills and other dues on time, you get a high credit score. On the other hand, if you default on your payments or do not repay your loans on time, your credit score falls. A score of 700 or below is average and any score below 300 is very poor.
The lenders assess your credit score to assess what kind of a borrower you are and how diligently you will repay the loan. If your credit score is high, they get the assurance that you will repay the loan on time. This is why the loan is quickly given to you and that too at a lower rate of interest. If your credit score is low, it shows that you are irresponsible with your repayments and as a result, the lender would not want to give the loan to you. Even if you do get the loan, your interest rate would likely be a lot higher.
The bottom line
Getting an instant loan without CIBIL is easy these days with the advent of instant digital lending. However, having a good CIBIL score is still important so make sure you have a good credit history at all times. If unfortunately your credit score is currently loan and you urgently need a loan, make use of the tips mentioned above and you should be able to find a good loan to finance the emergency at hand.
