If you want to apply for an instant personal loan, you will have to meet the eligibility criteria set by the lender. Many eligibility factors help lenders determine your loan eligibility, and your credit score or CIBIL score is the most crucial one among them.
A borrower’s CIBIL score shows how responsible their credit repayment behaviour has been in the past. A good credit score can not just help you get easy approval but also a low interest rate on your 1 Lakh Personal Loan or of any amount.
Your CIBIL score is a deciding factor in your loan application. However, if you do not have a CIBIL score yet, it does not mean you cannot qualify for a personal loan. There are still some ways to obtain a 2 Lakh Personal Loan or a loan of any amount without a CIBIL score.
Below are some tips to help you get an instant personal loan without a CIBIL score and important factors to consider before applying for such loans.
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How to Get an Instant Loan With a Zero CIBIL Score
- Apply with a co-applicant: You can apply for a personal loan with an eligible co-applicant if your income or credit score is insufficient. It will enhance your chances of loan approval. It will also make your application less risky for lenders, convincing them to approve your loan request.
- Present proof that you can repay your EMIs timely: Lenders may trust your repayment capacity if you provide them proof showing that you earn enough to repay your personal loan EMIs on time. You can provide proof (payslips bank statements, etc.) of all your income sources to improve your chances of getting loan approval.
- Apply for a lower loan amount: If you do not have a credit score, lenders will avoid risking lending their money to you. However, they may agree to sanction a smaller loan amount due to the lower risk involved.
- Get a credit card: You can approach your banking partner for a credit card that comes with zero or minimal charges. Paying off your credit card dues timely will help you build a credit profile and CIBIL score, enabling you to apply for a loan in future.
- Look out for other alternatives: SomeNon-Banking Financial Companies (NBFCs) or fintechs may offer personal loans to borrowers with zero CIBIL scores. However, these credit options come at higher interest rates.
- Explore secured loans: Secured loans require you to pledge an asset as collateral (such as a fixed deposit, property, etc.). Getting a secured loan can reduce the lending risk for loan providers, even without a CIBIL score.
Personal Loan Eligibility for Zero CIBIL Score
Here are the eligibility parameters to apply for an instant personal loan without a CIBIL score:
- Occupation: Salaried or self-employed
- Age: 21 to 58 years
- Citizenship: Indian resident
- Work experience: At least 6 months for salaried and 2 years for self-employed
- Monthly income: Minimum Rs. 25,000 per month
Documents Required for a Personal Loan without CIBIL Score
- Duly filled and signed personal loan application form
- Recent passport-sized photograph
- Identity proof, such as Aadhaar Card, Driving Licence, Passport or PAN Card
- Address proof, such as Aadhaar Card, Driving Licence, Passport, Ration Card or Utility Bills
- Income proof for salaried applicants, such as Salary Slips and Salary Account Statements of the last 6 months, the latest ITR and Form 16
- Income proof for self-employed applicants, such as Bank Statements of last 6 months and ITR for the last 2 consecutive years
- Job continuity proof for salaried applicants, such as an Appointment Letter from the current employer or Experience Certificate from the previous employer.
- Business existence proof for self-employed professionals, such as Shop Establishment Proof, a copy of Tax Registration or a Company Registration Certificate
How to Apply for a Personal Loan Instantly without a CIBIL Score?
- Download the lender’s mobile app or visit their official website.
- Register using your full name and contact details.
- Enter some basic information like your personal details, employment, and financial information.
- Scan and upload some basic required documents.
- After the verification of your information and documents, you will get a loan approval with a loan offer.
- Accept the offer to begin the disbursal process.
The need for funds can occur anytime and the lack of finance can disturb your monthly budget. If you are falling short of money, you may apply for a personal loan with any lender. However, the minimum credit score requirement for a personal loan is 750 or above. If you are new to credit or have an insufficient credit score, don’t lose hope. The tips mentioned above will help you sail through such situations.