August 14, 2022

How to avail of an instant loan without a CIBIL score or salary slip?

How to avail of an instant loan without a CIBIL score or salary slip?

When you apply for a personal loan, the CIBIL score is one of the first parameters evaluated by lenders. An excellent CIBIL score also helps to satisfy the applicant’s eligibility criteria when he/she places an application for a personal loan without a salary slip or salary proof. It goes without saying that the CIBIL score is crucial for anyone in need of financial aid. 

CIBIL score denotes the credibility of an individual, particularly when applying for a personal loan that is unsecured in nature. However, with more financial institutions providing new offers and schemes to make financial offerings more accessible, availing of an instant loan without a CIBIL score is possible today. 

What is the CIBIL score?

For any loan with no security or collateral, a CIBIL score check is performed to understand the eligibility of an applicant. A credit score or CIBIL score is a 3-digit numerical representation of a business entity’s credibility or individual’s creditworthiness. The score is maintained by Credit Information Bureau Limited and is utilized to evaluate whether the seeker will be able to repay the loan amount within the due date. All financial institutions and banks share their CIBIL score or credit data, based on which credit score is computed. An applicant applying for a personal loan with no income proof or salary slip even can get approval depending upon the CIBIL score. However, the question is – can you avail a personal loan with a low credit score?

What does a no or low CIBIL score mean?

CIBIL score ranges anywhere between 300 and 900, and anything less than 750 is usually considered a low score. As personal loans are unsecured in nature that do not need security or collateral in exchange, they signify a higher risk for lenders. However, a strong credit score reveals a history of timely repayments and is a testament to an individual’s credibility. It does not mean it is not possible to avail of a short- or long-term loan without a CIBIL score. You can place an application for a loan without a strong credit score, even if you have no income proof or credit history or both.

Here are some important options that you may factor in: 

Low CIBIL score and zero income proof: Improve your credit score

A credit score is dynamic and is prone to change depending upon the current credit info and debt repayment status of individuals. It means that you can work on ameliorating your score before you apply for the loan. Six months of repaying your EMIs and bills on time can make a lot of difference to your score. Having different kinds of loans on your name, maintaining old credit accounts, low credit utilization rate etc., are a few other parameters that can ameliorate your CIBIL score. Once your credit score has ameliorated, you can apply for a personal loan without salary slips. 

Have income proof but poor or bad credit score: Avail loan depending upon your income

Individuals who are availing of their first loan might not hold a credit history. Note that it is possible to avail of a personal loan without a CIBIL score at a suitable interest rate if you are unable to furnish steady income proof. In personal loan applications without a CIBIL score, lenders might at times have specific eligibility requirements like having income over a set limit, being employed at a reputed organization for a specific time period etc. For an instant loan without a CIBIL score, your loan eligibility will depend on your monthly income. 

Low personal loan eligibility: Accept higher rate of interest

It is very tough to avail of a loan without both income documents and a CIBIL score, but it is not impossible. Usually, if an individual is not able to qualify depending on the income check or CIBIL score, lenders might set a higher rate of interest than the others. Depending upon your repayment capacities and your repayment tenure, you can opt for a higher interest rate and avail of the loan without income checks and CIBIL score. However, you will require looking around for a lender with a suitable eligibility criterion for this.

Poor or low credit score and no proof of income

When you have no credit history, and you are in urgent fund requirement and do not have adequate time to ameliorate your credit score or lack the income proof, there are various options you can check out: 

Avail a joint personal loan

You can apply for a joint personal loan without a credit score if anyone in your family has a strong credit score. When you apply for a joint personal loan, the CIBIL score of both the applicants, i.e., the primary loan holder and co-borrower, is considered. The next option to get a personal loan with a credit score is to avail yourself of the name in your family member’s name. In this way, you will even be able to avail of bigger personal loans, the same as a home loan without a strong CIBIL score at the best rate of interest. 

Find the guarantor

In case you are facing any difficulty in availing of short term or long-term loans without a credit score due to no credit history, you can ask your family, like siblings or parents, to become the loan guarantor. However, you will require ensuring that the individual who is becoming the guarantor holds a strong credit score. It is one of the most common mediums wherein people apply for personal or education loans without CIBIL history. 

Consider providing security or collateral

A major feature of a personal loan is there is no restriction on its funds’ end usage. One of the best routes to avail of personal loans with zero income proof and a CIBIL score is to provide lenders with security in lieu of funds. One of the most common forms of security in India is gold, which the applicant can put up to avail of an instant loan with zero CIBIL score checks. 

Even with no CIBIL score, availing of a loan is not impossible. With various offers and schemes in the market, loan seekers have various options for availing of loans without CIBIL check. So, if you are eyeing a personal loan without credit score or any income proof, spare some time to look around for the best option.

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