Getting a personal loan without a CIBIL score may seem difficult, but it’s not impossible. Many people who are new to credit or have no prior borrowing history often face this issue. Lenders usually look at your CIBIL score to assess your creditworthiness, but when there’s no score available, other factors come into play.
In this guide, we’ll explain practical steps you can take to secure a personal loan without a CIBIL score, the alternatives available, and what to keep in mind during the process.
What is a CIBIL Score and Why It Matters?
A CIBIL score is a three-digit number that ranges from 300 to 900 and reflects your credit history and repayment behavior. Most banks and NBFCs in India consider a score of 750 or above as ideal for loan approval. However, if you’re just starting your financial journey, you might not have a credit score at all.
Not having a CIBIL score doesn’t mean you’re a high-risk borrower—it simply means there’s no data to evaluate your credit behavior. In such cases, lenders assess you based on alternative criteria.
Ways to Get a Personal Loan Without CIBIL Score
1. Apply with a Co-Applicant or Guarantor
If you have a family member or friend with a good credit history, applying for a loan jointly or with a guarantor can boost your chances. Their credit profile supports your application, giving the lender more confidence to approve the loan.
2. Choose a Lender That Offers Loans to New-to-Credit (NTC) Borrowers
Some NBFCs and digital lending platforms specialize in offering loans to people without a credit score. These lenders consider alternative data like income, employment history, and bank statements to approve loans.
- Examples: EarlySalary, MoneyTap, KreditBee, PaySense
- Minimal paperwork and instant approval process
- Interest rates may be slightly higher
3. Provide Income Proof and Bank Statements
When you lack a credit score, your income becomes the key. If you have a stable job, consistent salary deposits, and responsible savings habits, lenders may offer you a loan based on your financial stability.
- Submit last 6 months’ salary slips
- Bank statements reflecting regular income
- Employment certificate or offer letter (if new)
4. Opt for a Secured Personal Loan
Secured loans require you to pledge collateral, such as fixed deposits, gold, or insurance policies. Since the lender holds an asset as security, they are more willing to approve your loan even without a CIBIL score.
- Lower interest rates compared to unsecured loans
- Flexible repayment terms
- Quick approval based on asset value
5. Use FinTech Platforms and Peer-to-Peer (P2P) Lending
FinTech apps and P2P platforms connect borrowers directly with investors. These services are more flexible and often approve loans without a traditional credit check.
- Minimal credit history requirements
- Faster disbursement through digital process
- Ideal for small-ticket personal loans
Tips to Improve Approval Chances
- Maintain a steady source of income
- Avoid applying to multiple lenders at once
- Be transparent about your financial history
- Start building credit by using a secured credit card or small consumer loan
Risks and Things to Watch Out For
While borrowing without a CIBIL score is possible, it often comes with certain trade-offs. You might face:
- Higher interest rates
- Lower loan amounts
- Stricter repayment terms
Always compare offers and read the terms carefully before signing any agreement. Avoid shady lenders who charge excessive processing fees or offer vague loan terms.
Final Thoughts
Lack of a CIBIL score doesn’t close the door to personal loans—it just opens a different route. By presenting strong income proof, exploring alternative lenders, or opting for secured options, you can still get the financial support you need.
Once your loan is approved and repayments begin, make sure you pay on time. This will help you start building your CIBIL score, making future borrowing much easier and cheaper.
Remember, your financial journey starts somewhere—make it count from day one.
