How to Get a Personal Loan Without a CIBIL Score

Know ways to get approval on your instant loan without CIBIL score

Key Takeaways

A good CIBIL score is an important yardstick to determine your creditworthiness.
Many lenders refrain from giving loans to those with a low credit score.
You can still avail of a Personal Loan without CIBIL Score.
If your credit score is low, then collateral serves as a security deposit for lenders.
You should maintain a credit score of 700+ to avail of a loan at lower interest rates.

Picture this – You are in urgent need of a loan to fund your son's university fees. You consider the option of applying for a Personal Loan. But you realise that your CIBIL score was a dismal 500 because of a credit card default some time ago. Now, your lender insists you should have a better CIBIL score to qualify for a loan. What do you do in such a situation? Are you aware that you can still get an instant loan without CIBIL score? Let us understand what CIBIL score is and how you can obtain that loan you so need.

What is CIBIL score?

CIBIL, one of the top credit bureaus in India, maintains a credit report of customers. Based on the credit report, it assigns a three-digit numeric summary that reflects their credit health. The score, from 300 to 900, identifies the ability of a customer to repay the loan and is known as a CIBIL or credit score.

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Why is CIBIL Score Important?

A CIBIL score is one of the key factors that lenders consider before approving a loan application as it reflects your creditworthiness based on your past financial behaviour. A high CIBIL score (typically 700 and above) increases your chances of getting a loan approved with favourable interest rates, while a low score may result in loan rejection or higher interest charges.

Here’s why maintaining a good CIBIL score is crucial:

Loan Approval Chances – A higher score improves the likelihood of getting a loan sanctioned.
Lower Interest Rates – Banks and financial institutions offer better terms to borrowers with strong credit scores.
Higher Credit Limits – A good score enhances eligibility for higher loan amounts.
Faster Approval Process – Lenders prioritize applicants with a solid credit history, ensuring quicker loan processing.

If your CIBIL score is low, it is advisable to work on improving it before applying for a loan. However, in some cases, alternative options may be available for those seeking a personal loan without a CIBIL score.

Get Instant Loan Without CIBIL Score

Even though CIBIL Score is mandatory, there are still several options available to get your Personal loan without CIBIL Score required by lenders.

Provide Income Proof

You need to prove to the lender that you will be able to repay the loan. Banks may consider your loan application if you have a stable monthly salary or steady income. Your salary slips or bank statement will give your lender the confidence to grant you the loan without CIBIL score.

Consider Collateral-based Loans

Typically, Personal Loans do not require you to furnish collateral. However, if your credit score is low, collateral serves as a security deposit for lenders. You can pledge your property, jewellery or any other valuable asset in lieu of the loan amount.

Apply with a Co-Applicant or Get a Guarantor

If you apply for a loan with a co-applicant who has a steady source of income and a good CIBIL score, your loan application may be approved. The other option is to get a guarantor for your loan amount.

Get NA/NH on your credit report

The History not Available (NA) or No History (NH) on your credit report means that there has been no previous credit activity or credit in the last 36 months. You can request your lender to issue an NA or NH on your credit report. If the lender is willing, you can get a Personal Loan at a higher rate of interest.

Apply for a lower loan amount

It is best to go for a lower loan amount as the lender may doubt your ability to repay the loan or charge high interest. This ultimately improves your chances of getting the loan approved.

Also Read- How to Get A Personal Loan Online With 650 Credit Score

Tips to Build Your CIBIL Score

Improving your CIBIL score takes time, but consistent financial discipline can help you achieve better credit worthiness. Here are some essential tips:

Pay Bills on Time – Ensure timely repayment of credit card bills, EMIs, and loans to maintain a positive repayment history.
Keep Credit Utilisation Low – Use no more than 30% of your total credit limit to show responsible credit usage.
Avoid Multiple Loan Application – Too many loan inquiries can lower your score. Apply only when necessary.
Maintain a Healthy Credit Mix – A combination of secured (home/car loans) and unsecured credit (personal loans, credit cards) improves your score.
Check Your Credit Report Regularly – Identify and correct errors in your report to avoid an unnecessary dip in your score.

By following these steps, you can gradually improve your CIBIL score and qualify for better loan terms in the future.

Final Note

While some lenders may offer loans with flexible credit requirements, maintaining a healthy CIBIL score of 600 or above is always beneficial. A strong credit score improves your chances of loan approval and helps secure better interest rates and terms. To enhance your CIBIL score, focus on timely debt repayment, limiting credit utilization, and managing your finances responsibly.

Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page. Also, open your savings account with us.

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