Financial constraints shouldn't hold you back fulfilling your needs, especially when it is possible to get an Instant Personal Loan. But what if you are new to credit and have no CIBIL score or credit history? Can you still get an Instant Loan without CIBIL score? Yes, you can, Let us find out how you can navigate the process of securing a Personal Loan without CIBIL score, ensuring that a low or non-existent CIBIL score doesn't stand in your way.
What is CIBIL score?
Your CIBIL score, a three-digit number ranging between 300 and 900, assesses your creditworthiness. Issued by the Credit Information Bureau (India) Ltd., an RBI-authorised credit rating agency, it determines your financial reliability, which is crucial for traditional loan approvals.
Why does CIBIL score matter?
A good CIBIL score simplifies borrowing. For banks, processing retail loans like home or vehicle loans, a CIBIL score ranging from 700 to 900 is viewed as favourable. This score significantly influences their assessment of loan applications.
A high CIBIL score indicates the creditworthiness of the borrower and inspires confidence among lenders that the borrower is likely to repay the loan. This aids in faster approval of your loan application and maybe better terms and conditions for your loan.
If you have a line of active credit and repay it regularly, it ensures that your credit score remains high.
However, for those who need a small loan without CIBIL or an instant Personal Loan without a CIBIL score, there are alternative avenues.
Applying for an instant loan without CIBIL score
Securing an instant loan without a CIBIL score may seem challenging, but it's achievable with the right approach:
1. Apply for a small amount: If you are new to credit and hence don’t have a CIBIL score, start small. Apply for a small loan amount as compared to your income. If the bank is convinced that you will be able to afford the EMIs in your income, there are chances that your loan will get sanctioned. Once you repay your first loan successfully and without any delay, you can apply for a larger ticket loan based on your high CIBIL score. Hence, applying for a small amount is one of the easiest ways to get an Instant Loan without CIBIL score.
2. Guarantor or co-applicant: Having a co-applicant with a strong credit score can significantly enhance your loan approval chances. The lender considers the creditworthiness of both applicants, which can offset your low or no CIBIL score.
Each option has its own set of pros and cons, and it’s important to thoroughly research and compare them before making a decision. Remember, even without a traditional CIBIL score, various avenues can lead you to the financial support you need.
Benefits of a good CIBIL Score
- Higher chances of your loan getting approved faster
- Chances of better terms and conditions for your loan such as lower interest rates or longer repayment period. This will ensure lower EMIs and make it easier for you to repay your loan
- Higher loan amount as you desire
- Access to pre-approved loans with easier terms and conditions (applicable if you are lender bank/institute’s existing customer)
Impact of low CIBIL Score
- Your loan application may get rejected
- You may get the loan but at higher interest rates
- The loan amount that is approved may be lower than your need
- You may get the loan with a lower tenure which may lead to higher EMIs and thereby may put pressure on your finances
Can you get a loan without knowing your CIBIL score
Yes, you can get a loan without knowing your CIBIL score. When you apply for an Instant Loan you need to submit your KYC documents and income proof. On receiving your loan application, the bank will access your CIBIL score directly from credit bureaus. Based on both sets of information, i.e. your income data and your CIBIL score, the bank will determine whether you are eligible for the loan, what should be the interest rate charged and what should be the tenure for the loan.
Also Read: Top 4 ways to get Personal Loan online with low CIBIL Score
Conclusion
Getting an Instant Loan without CIBIL score doesn't have to be an uphill battle. Understanding that a CIBIL score isn't the sole indicator of your financial health. With a bit of planning, you can enjoy the benefits of securing an instant loan without CIBIL score, provided you are ready to take on a higher interest rate or repay in a shorter time period.
Axis Bank's instant loan options include 24x7 Personal Loans, Car Loans, Two-Wheeler Loans, Business Loans and Overdraft. They offer flexible tenures from 12 to 84 months and are available at competitive interest rates. The process is simplified with minimal documentation required — just the bank statements from the previous three months, two recent salary slips, and KYC for non-pre-approved loans.
With Axis Bank, secure the financial support you need with ease and clarity.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
