How to Get Loan Without a CIBIL Score?

how to get loan without cibil

Getting a loan can be a daunting task, especially if you have a low or no CIBIL score.

CIBIL, which stands for Credit Information Bureau (India) Limited, is a credit information bureau that maintains records of all credit-related activities of individuals and companies.

A CIBIL score is a three-digit number that ranges from 300 to 900 and is based on an individual’s credit history. A higher CIBIL score indicates that the individual has a good credit history, whereas a lower score indicates that the individual has a poor credit history. If you want to know more about CIBIL report, and CIBIL score, head over to this blog by Credmudra for a much deeper insight.

personal loan

So, What does a Low CIBIL Score or No CIBIL Score Show?

A low CIBIL score indicates that the individual has a poor credit history and is, therefore, considered a high-risk borrower.

A no CIBIL score indicates that the individual has not yet established any credit history and is therefore also considered a high-risk borrower.

Lenders are usually hesitant to lend to individuals with low or no CIBIL score as they are unsure of their creditworthiness.

After reading this, you might think Credit score and CIBIL score are the same, but that is not the case, if you are still confused, you can read our blog on Credit Score Vs CIBIL Score, to get a clear picture.

The Role of the CIBIL Score in Getting you a Loan is Significant

Most banks and financial institutions rely heavily on an individual’s CIBIL score while evaluating their loan application. A high CIBIL score can increase the chances of loan approval and also help in negotiating a better interest rate. On the other hand, a low or no CIBIL score can lead to loan rejection or approval with a high interest rate.

Also Read: Get Personal loan for CIBIL Defaulters Instantly

Best Ways to Get a Loan without CIBIL Score

Here are the six ways:

1. Secured Loans: Secured loans are loans that are backed by collateral such as property, gold, or any other asset. Since the loan is secured by collateral, lenders are more likely to approve the loan even if the individual has a low or no CIBIL score. However, if the individual defaults on the loan, the lender has the right to seize the collateral.

2. Peer-to-peer lending: Peer-to-peer lending platforms connect borrowers with lenders directly, bypassing traditional financial institutions. The platform uses alternative credit scoring methods to evaluate the borrower’s creditworthiness, making it easier for individuals with low or no CIBIL score to get a loan.

3. Co-Signer: A co-signer is a person who agrees to take joint responsibility for the loan. If the borrower defaults on the loan, the co-signer is held responsible for repaying the loan. Having a co-signer with a good credit history can increase the chances of loan approval even if the borrower has a low or no CIBIL score.

4. Microfinance Institutions: Microfinance institutions provide small loans to individuals who are unable to access traditional banking services. These institutions use alternative credit scoring methods to evaluate the borrower’s creditworthiness, making it easier for individuals with low or no CIBIL score to get a loan.

5. Salary Advance: Some companies offer salary advances to their employees. A salary advance is a short-term loan that is repaid through salary deductions. Since the loan is repaid through salary deductions, lenders are more likely to approve the loan even if the individual has a low or no CIBIL score.

6. Credit Unions: Credit unions are non-profit organizations that offer financial services to their members. Since credit unions are owned by their members, they are more likely to offer loans to individuals with low or no CIBIL score.

Also Read: 8 Best Ways to Improve Your CIBIL Score Quickly

How to Get a Loan without CIBIL Score?

You can still get a quick loan even if you don’t have a CIBIL score. Here are five ways to do that:

1. Find Someone to Co-Sign: A co-signer with good credit can help strengthen your loan application.

  • Co-signers Credit: A co-signer with a strong credit history can boost your loan application because their good credit score reassures lenders.
  • Co-signers Responsibility: The co-signer agrees to pay back the loan if you cannot, which reduces the risk for the lender.

2. Ask for a Small Loan: Starting with a small loan can help build a good payment history, which can lead to bigger loans in the future.

  • Build Credit History: A small loan can be easier to repay on time, helping you build a positive credit history.
  • Loan Amount Growth: Consistent repayment of smaller loans can make lenders more willing to offer you larger loans in the future.

3. Show your Income: Proving you have a stable income can show lenders you’re capable of paying back the loan.

  • Proof of Repayment Capability: Presenting proof of a steady income demonstrates your ability to repay the loan.
  • Income Documentation: Lenders typically accept pay slips, tax returns, and other documents as evidence of income.

4. Use Property as Security: Offering something valuable as security can make lenders more willing to give you a loan.

  • Risk Reduction for Lender: Offering assets as collateral decreases the lender’s risk, as the lender can claim the asset if the loan is not repaid.
  • Collateral Options: Assets like real estate, vehicles, or other valuables can be used as security for the loan.

5. Explain any Gaps in your Credit History: Being open about why you haven’t borrowed before can help build trust with lenders.

  • Transparency with Lenders: Openly discussing the reasons for your lack of credit history or past credit inactivity can foster trust.
  • Trust Building: Demonstrating honesty about your financial past may make lenders more comfortable in offering you credit.

Tips To Get Loan Without CIBIL Score:

Here are the points to remember when trying to obtain a loan with a low or no CIBIL score:

1. Approach Non-Banking Financial Companies (NBFCs) which may have more flexible lending criteria.
2. Present proof of income to demonstrate financial stability.
3. Consider adding a co-applicant with a strong financial background.
4. Request a smaller loan amount to increase the likelihood of approval.
5. Seek lenders that have partnerships with your employer, potentially easing income verification requirements.
6. Work on improving your credit score for future financial endeavors.
7. Look into secured loans, offering assets as collateral.
8. Explore online platforms that specialize in loans for individuals with low CIBIL scores.

Factors that Affect your CIBIL Score

Your CIBIL score is influenced by:

1. Credit Utilization: How much credit you’re using versus your available limit.
2. Payment History: Timeliness of your credit payments.
3. Credit Mix: Types of credit you have (loans, credit cards).
4. Credit Inquiries: Number of times you apply for credit.
5. Length of Credit History: How long you’ve had credit.

A Good CIBIL Score is Beneficial for:

1. Easier loan approvals.
2. Favorable interest rates.
3. Quicker loan processing.

In conclusion, getting a loan without a CIBIL score is not impossible. There are several ways to get a loan even with a low or no CIBIL score. However, it is important to understand the factors that affect your CIBIL score and take steps to maintain a good score. Remember, a good CIBIL score can open doors to numerous financial opportunities.

Also Read: Credit Score vs CIBIL Score: Are they Even Different?


1. Is it Possible to Obtain an Instant Loan without a CIBIL Score?

Yes, securing an instant loan without a CIBIL score is feasible. Options include secured loans against assets like gold or property, choosing online personal loan providers, or applying jointly with a co-applicant.

2. What constitutes a poor CIBIL Score?

A score falling between 300 and 549 is generally considered poor.

3. If I have a bad CIBIL Score, What are the Options for Obtaining a Loan with a Bad CIBIL Score?

If you have a low CIBIL score, securing a personal loan is still possible by applying alongside a co-applicant or having a guarantor. This requires the additional applicant to complete necessary KYC formalities and sign documents, as they’ll be partly responsible for the loan.

4. Is having a CIBIL Score Essential?

A CIBIL score is not mandatory but crucial for securing loans and credit cards in India, as it reflects creditworthiness and influences lenders’ decisions.

5. Is a CIBIL Score Check Necessary for an NBFC Loan?

Loan eligibility varies between lenders, and you might secure a loan from a Non-Banking Financial Company (NBFC) without a CIBIL score check if you receive a pre-approved offer.

Also Read: Get a Salary Advance loan Without CIBIL Check

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