An individual’s credit score is crucial to get an instant Personal Loan approved quickly without hassles or CIBIL Score. However, some individuals in India may assume that CIBIL score and credit score are the same. A good credit score is a parameter you need to satisfy to meet the eligibility criteria for a loan. But, who gives the credit score? It is credit bureaus like CIBIL and Experian. If CIBIL gives the score, it is called a CIBIL score and if Experian gives the score, it is called the Experian score.
The credit score is, usually, the first thing considered when you apply for any credit products, including a Personal Loan. When looking to get a Personal Loan without a CIBIL score, you need to start your journey with a loan provider that uses an Experian score for Personal Loans.
Before we explore how to get a Personal Loan without a CIBIL score, let us first understand what is a credit score.
What is a Credit Score?
The credit score is the numerical overview of the financial reliability of an individual or business entity. Credit Bureaus like CIBIL and Experian give credit scores to individuals and businesses.
Credit bureaus assess whether an individual can repay the loan amount within the due time of a loan.
Financial institutions transmit their credit data to credit bureaus. On the basis of this information and records analysis, credit bureaus assign a numerical score between 300-900 to each individual.
The loan provider can accept your loan application without collateral if the credit score meets the minimum eligibility criteria. For example, you can get an instant personal loan at Clix Capital with an Experian score of 630.
Keep in mind that there are many factors to consider when looking for a Personal Loan approval. Interest rate is one of the most crucial factors in the application. While studying the interest rate, you also need to consider your credit score and credit history. The higher the credit score, the higher the chances of getting a high amount loan at the best interest rate.
Get a Personal Loan Without A CIBIL Score
A Personal Loan is a fantastic option for individuals looking to get funds to meet aspirational or emergency requirements. Do not get disheartened if you do not have a CIBIL score. Chances are you can get a Personal Loan without a CIBIL score with the approach discussed below.
- Look for the Experian score
There are many loan providers who do not require the CIBIL score from you. For instance, reliable NBFCs like Clix Capital use the Experian score and all you have to do is check your credit score on their website and apply for an instant Personal Loan.
- Make sure you study the loan components
Loan components make it easy for a borrower to understand and apply for a Personal Loan. It includes eligibility criteria, documents required and filling out the application. You need to understand each component in detail so that you don’t face issues while filing the loan application.
- Consider a Co-applicant
When you are struggling to meet the credit score and other eligibility requirements, you can consider getting a co-applicant. Your spouse, family member, or friends can become co-applicants. This way, it is possible to get a loan approved even with a low credit score.
- Check the documents and income proof
There are many people who claim that it is possible to get a loan approved without income proof. It is not possible, but there are many NBFCs offering loans with minimum documents when you have income proof. Income proof required are things like salary slips. These can help loan providers understand that you have a steady monthly income.
Thus, getting a Personal Loan without a CIBIL score is possible if you follow the above. Submit the details and upload the required documents to avail of the Personal Loan through the online process.
Now, it is also important to understand how to improve a low credit score. Even when you apply with an Experian score, it is important to meet the personal loan eligibility set by the loan providers.
What Does A Low/No Credit Score Mean?
A low or no credit score can mean three things.
- You have not used credit for any transaction and hence the score is low.
- You do not have a healthy credit history and hence, it has had a negative impact on your credit score.
- You paid a loan, but a previous loan provider did not close the loan from their end.
Whatever the case, there is no need to panic. It is possible to increase your credit score. Here are the steps you can take to improve your credit score.
- In the first instance, inform the loan provider, and they may work with you. Another option is to use a credit card and repay the credit card on time. In a few months, you will notice that the credit score meets the eligibility criteria.
- Put checks and balances in place for your credit behaviour. Start paying your credit bills and EMIs on time. If you are still facing an issue with your debt and income management, explore debt consolidation. All your debts will become one loan, making it easier to track and pay EMIs.
- Contact your loan provider, and ask them to close the loan. Once they do that your credit score will improve.
Related: How to improve your credit score?
In the competitive financial market, many financial institutions are offering unique schemes to make financial services more accessible to individuals. Technology has enabled loan providers to sanction a Personal Loan with minimal information. Consider NBFCs that make it easier to access hassle-free, paperless, and instant Personal Loans within minutes.