Many people often find themselves in sudden need of money. However, when they apply for a bank loan, they face issues due to their CIBIL score. If you don’t have a CIBIL score or if it’s too low, can you still get a loan?
The answer is “Yes!” It is possible to get a loan even without a CIBIL score. In this blog, we’ll explain how to get a no-CIBIL-score loan and what ways can make the process easier.
What is a CIBIL Score?
The CIBIL score is a 3-digit number that represents your credit history. It is based on your past loans, credit card payments, and overall financial behavior. Though it helps in loan approval, it’s not the only factor.
Generally, a score above 750 is considered good, making loan approval easier. A score below 600 often causes difficulties in getting loans.
If you’ve never used a credit card or taken a loan, you won’t have a CIBIL score. This is called “No History (NH)”.
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5 Ways to Get a Loan Without a CIBIL Score
1. Apply with a Guarantor
If you don’t have a CIBIL score, you can apply with a guarantor—someone with a good credit history who guarantees your loan.
A guarantor can be your parent, spouse, sibling, or close relative.
Note: If you fail to repay the loan, your guarantor becomes responsible for repayment.
2. Take a Small Loan Amount
If you’re a first-time borrower, start with a small loan.
Repaying small loans on time proves your creditworthiness. Once repaid, your CIBIL score will start building, making it easier to get larger loans in the future.
3. Provide Income Proof
When you don’t have a CIBIL score, banks evaluate your income to assess your repayment ability.
You can submit documents like salary slips, bank statements, and ITRs.
The goal is to prove your income is stable and you’re financially capable of repaying the loan.
4. Take a Collateral-Based Loan
Collateral-based loans require you to offer an asset as security.
- Gold Loan – If you have gold, you can easily get a loan by pledging it.
- Fixed Deposit Loan – You can get a loan against your FD.
Since collateral reduces the lender’s risk, the chance of approval increases.
5. Explain Your Credit Inactivity
If you don’t have a credit history, explain why to the bank.
“No History” doesn’t mean you’re a risky borrower. Share your financial stability, savings habits, and past experiences.
Be honest and build the lender’s trust in you.
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Can You Get a Small Loan in India Without a CIBIL Score?
Yes, it is very possible to get a small loan without a CIBIL score. By following the above options, you can secure a loan even with no or low credit history.
- Use a guarantor with a good credit record.
- Try taking a low-risk small loan, which is more likely to get approved.
- Use collateral like gold or property.
- Submit valid income proof to show you can repay the loan.
Having no or low credit score shouldn’t discourage you. With the right planning and documents, you can successfully get a loan.
Start with small steps like using a guarantor, providing proof of income, or securing the loan with collateral. Repay your loans on time and gradually build a strong credit profile.
Maintain healthy financial habits to ensure hassle-free borrowing in the future.
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FAQs
Yes, by using a guarantor, income proof, or collateral, you can get a personal loan.
Anyone with a good credit history—parents, spouse, siblings, or close relatives.
By pledging your gold to the bank, you can get an instant loan. Gold is considered safe collateral by banks.
NH means you have never taken a loan or used a credit card before.
Yes, repaying small loans helps you start building a good credit score.