The CIBIL score or credit score is a crucial factor impacting Personal Loan eligibility. Maintaining a decent credit score of 750 or above makes a person eligible for rewarding and affordable credit offers. On the contrary, no CIBIL score makes obtaining a loan with favourable terms and conditions challenging. Still, follow these clever ways to secure a Personal Loan without CIBIL.
Apply for a Low-Value Loan
A lending institution checks an individual’s credit history and current debt obligations using a credit report, which is not possible for those who do not have a credit report. So, they are hesitant to approve a big loan to such individuals. That is why applying for a small loan convinces the lender to take the risk and approve the loan. You can build a credit history with regular EMI payments and improve eligibility for high-value loans.
Apply with a Co-Applicant
Since no CIBIL score signifies higher default chances with a bigger risk involved. In this case, applying with a co-applicant will help. Co-applying for a loan will offset the financer’s risk, and they feel confident to approve the loan application. However, co-applying will benefit only if the co-applicant has a decent CIBIL score and fulfils other eligibility requirements. That way, a loan seeker can obtain the loan amount required with convenient repayment terms.
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Show More Income and Reduce Financial Obligations to Boost Repayment Capacity
An applicant’s monthly income and financial obligations directly indicate their repayment capacity. A high income with a low debt-to-income ratio means they have enough funds to repay the EMIs on time. As a result, lending institutions approve their application with no CIBIL score. Mention all income sources in the loan application and pay off outstanding bills if any to boost repayment capacity.
Several financial institutions provide Personal Loans at competitive interest rates and flexible repayment terms. However, if you are looking for a Personal Loan without CIBIL, use the above tips to get quick approval without hassle.
For individuals seeking a personal loan without a CIBIL score, alternative financial institutions and lenders offer solutions. Despite the absence of a CIBIL score, applicants can explore avenues such as peer-to-peer lending platforms or opt for secured personal loans. While traditional banks may pose challenges, fintech companies often provide personalized solutions for personal loan applications, accommodating those with limited or no credit history. These platforms assess various factors beyond credit scores to evaluate creditworthiness, offering accessible options for individuals without a CIBIL score.
