When you apply for a personal loan, your CIBIL score is the initial factor that lenders check. A strong credit score also allows satisfying your eligibility parameter when you apply for a personal loan without any salary slip or income proof. It goes without saying that the CIBIL score is important for anyone looking for financial help. CIBIL score shows an individual’s credibility, particularly when applying for a loan which is unsecured in nature. However, with an increasing number of financial institutions offering offers and schemes to make financial services highly accessible for individuals, availing of an instant loan without a CIBIL score is even possible today.
What is a CIBIL score?
For any loan without security or collateral, a CIBIL check is performed to determine your eligibility. A credit score or CIBIL score is a 3-digit numerical summary of a business entity or individual’s credibility. The credit score is maintained by CIBIL and is utilized to evaluate whether the borrower will be able to pay the loan proceeds in due time. All financial institutions and banks share their credit details with CIBIL, based on which the credit score is computed. An applicant placing an application for a personal loan without salary slips or income proof can also receive approval depending upon their credit score. However, the question is – can you avail a personal loan with a low credit score?
What is meant by no or low CIBIL score?
CIBIL score ranges anywhere between 300 and 900, and anything less than 750 is usually looked upon as a low credit score. As the personal loan is unsecured in nature that does not need security or collateral in exchange, they indicate a higher risk for bank lenders. However, a strong credit score reveals a history of timely repayments and is a testament to an individual’s credibility. This does not mean; it is impossible to avail of short-term or long-term loans without a credit score. You can place an application for a loan without a strong CIBIL score. Even if you have zero credit history or zero income proof, or both, there are a few options that can be considered.
Low credit score and zero income proof – improve your credit score.
CIBIL score is dynamic in nature and changes depending upon the latest credit info and an individual’s debt repayment status. It means that you can aggressively work on ameliorating your credit score before you place an application for a personal loan. Six months of repaying your bills and timely EMIs can make a lot of difference in your credit score. Holding different kinds of loans on your low credit utilization ratio, name, maintaining old credit accounts etc., are a few other parameters that can ameliorate your CIBIL score. Once your credit scores have ameliorated, you can place an application for a personal loan without the salary slip based on your credit score.
Having poor credit score or income proof – Get a loan depending upon your income.
For people who are availing of their initial loan, this goes without saying they might not have a credit score. Availing a personal loan without CIBIL score is possible, provided you can furnish steady income proof. In the case of a personal loan application without CIBIL score, lenders might, at times, have specific eligibility parameters, like holding an income over a specific limit and being employed at the same organization for a specific time period. For instant personal loans without CIBIL score, your loan eligibility will depend on your monthly income. A personal loan without salary slip is even possible if you furnish your credit score.
Low eligibility – accept a higher rate of interest.
It can get really tough to avail of a personal loan without income proof and a CIBIL score. Usually, if an individual is not able to qualify based on the income check or CIBIL score, the lender might ask for a higher rate of interest than others. Depending upon your repayment potential and loan repayment tenure, you can select to accept a higher interest rate and avail of a loan without income checks or CIBIL. However, you will require looking around for a lender with flexible eligibility parameters for the same.
No/bad credit score & no income proof
If you do not hold a credit history or are in instant need of funds and cannot take time to ameliorate your credit score, or do not have income proof, there are various options for you also.
Go for a joint loan –
You can place an application for a joint personal loan without CIBIL score if your spouse holds a strong credit score. When you apply for a joint personal loan, the CIBIL score of both applicants is considered. The next option is to take up a loan without any CIBIL score in your spouse’s name. In this way, you also will be able to avail yourself of big-ticket loans such as home loans without a strong credit score at a reasonable rate of interest.
Find out a guarantor –
In case you are facing any issue in availing a short-term or long-term loan without any CIBIL score due to inadequate credit history, you can request your immediate family, such as your sibling or parents, to serve as a loan guarantor. However, you will require ensuring that the individual who serves as guarantor has a strong credit score. This is one of the most common ways wherein you can apply for a personal loan without any CIBIL score.
Consider putting up your security –
A major feature of a personal loan is there are zero restrictions on the end usage of funds. One of the prudent ways to avail of a personal loan without income proof and CIBIL is to provide lender security in exchange for money. In India, gold is one of the most common securities you can put up to avail of an instant loan with zero CIBIL checks. These days, gold loans have become extremely common, and as money can be utilized for any purpose, an increasing number of people are choosing this kind of instant loan. Personal loan without CIBIL, collateral serves as security to offset default risk for lenders. Based on your requirement, you can put up any type of asset like vehicle, land, gold etc.
