Instant Personal Loan Without A CIBIL Score 5 Easy Ways To Get It!

Personal loan without CIBIL score

Personal loan without CIBIL score 

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It is well-known that having a high CIBIL score helps you get instant loan approval at lower interest rates. However, not everyone will have a high score due to various reasons. And if you fall into this category, this article is for you. There are numerous ways of getting a personal loan, even if you don’t have a high CIBIL score.

So, read this blog till the end to know 5 easy ways to boost your chances of getting your personal loan with a low CIBIL score and quick tips on improving your score.

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A CIBIL score is a numerical representation of your creditworthiness ranging from 300 to 900. Generally, a score above 750 is considered to have high eligibility of availing a personal loan with good deals on interest rates. Most banks and Non-Banking Finance Companies (NBFCs) often approve loans or credit cards to applicants with a CIBIL score of above 750. Therefore, a low CIBIL score will reduce your chances of getting a personal loan or any other credit. Although it is a challenge, there are alternative ways to get an instant personal loan without a CIBIL score.

Before moving further, you must know the factors that significantly influence your CIBIL score. This will help you know where to improve, which led to a poor CIBIL score.

What Does a Low or No CIBIL Score Indicate?

Since personal loans do not require collateral in return, they have a higher risk for the lender. And a good credit score indicates a history of timely payments and acts as proof of the individual’s creditworthiness. However, this does not mean that it is impossible to get an instant personal loan without the CIBIL score. The best part is that you can apply for a loan with a low or no CIBIL score. Even if you don’t have a credit history or proof of income, or both, there are some options that you can consider.

What does low credit score indicate

5 Easy Ways To Get a Personal Loan With Bad CIBIL Score

Having a low CIBIL score can be challenging, but you can still get a personal loan with the following tips listed below:

  1. Show your income as proof of ability to repay your loans:

    You may have a low score, but a hike in your salary or an additional source of income will increase the chance of you getting an instant loan without CIBIL. Moreover, you can show that you have a stable job and income to repay your loan without defaulting.

  2. Choose a Low Personal Loan Amount:

    If you apply for a high loan amount with a poor score, your loan may get rejected as lenders will perceive you as a high-risk borrower. This will further reduce your score. Hence, to avoid such situations, apply for a lesser loan amount for which you have the confidence to repay. This will increase the chances of your personal loan getting approved.

  3. Get a Co-Applicant or a Guarantor:

    Only apply for a personal loan when you have a CIBIL score. Instead, apply for a personal loan by getting a co-applicant or a guarantor. A co-applicant can be anyone (spouse or parent or your children) who shares the responsibility of loan repayment with the borrower. It is an added advantage if the co-applicant has a good CIBIL score.

  4. Clear the errors in your credit report:

    Your credit report can have potential errors when your transactions need to be updated regularly. To clear such mistakes, you have to check your credit report once a year regularly and resolve it immediately. This will help you improve your score, increasing your chances of getting an instant loan without CIBIL.

  5. Request your lender to consider your case with a NA or NH in your credit report:

    The NA or NH in your report shows that your credit account was inactive in the last 36 months. As a result, your CIBIL score may drop. In such situations, you can speak to your lender, stating the reason for inactivity, and request a loan. The lender might offer you the loan but at slightly higher interest rates.

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Alternatives To Get A Personal Loan Without CIBIL Score

Availing of an instant personal loan without a CIBIL score is not possible. The reason is that personal loans need to be secured, and it is challenging for a lender to assess the risks involved with lending to an individual with no CIBIL score.

You can either start creating your credit history or consider the following alternatives. However, even these alternatives will be challenging as most lenders want you to have a good credit score before accepting your loan application.

Collateral Loan:

You can apply for a personal loan by pledging your assets, such as saving certificates, gold, shares, and other valuables. It will also help you to start your credit journey and generate a credit report.

Peer-to-Peer Lending:

If you’re looking for a smaller loan, it will be ideal for you, but it usually has a high-interest rate.

Using your Parent’s or Spouse’s Credit Score: If your parents or spouse have a good credit score and a good credit history, you can apply for a personal loan by adding their name to the loan application as a joint loan holder.

Get a Credit Card:

You can opt for a credit card if you are salaried and have a bank account. However, if you are not eligible for a credit card, you can consider choosing an overdraft facility using your fixed deposit as collateral. Or you can also apply for a joint credit card with your family member who is eligible for one. And when you make timely repayments of your dues, it will help you build a good credit score.

The above points may help you get a personal loan without a CIBIL score. However, it is a tiresome and long process. Instead, first, create a credit profile or improve your CIBIL score before applying for a new personal loan.

But before going further, let us first understand the factors that affect your CIBIL score and its role in your loan approval process.

Also Read: CIBIL Score Range: Everything You Need To Know 

factors that affect your CIBIL score

Major Factors That Affect Your CIBIL score

A CIBIL score is calculated and generated by the TransUnion CIBIL credit bureau based on different factors, including payment history, credit type, the age of the credit, and other factors.

Let’s look at factors that affect your CIBIL score in detail.

Components of CIBIL Score Weightage
Payment history 35%
Credit Exposure 30%
Length of credit history 15%
Type of Credit 10%
Credit Inquiries 10%
  • Payment History:

    Your payment history is a key factor influencing your CIBIL score. It accounts for almost 35% of your total score. Hence, paying all your dues on time and having a consistent repayment record is essential. Also, ensure you do not default on your payments, as it will negatively affect your CIBIL score. Moreover, if you do not have a good payment history, lenders will consider you incapable of repaying credit.

  • Credit Exposure or Amount of debt:

    The credit exposure holds 30% of your total score. You must maintain a low credit utilization ratio (the total amount you owe and your total credit limit) on all your accounts. Using less than or equal to 30% of your credit limit is best. Hence, focus on reducing your debt, which will help improve your CIBIL score.

  • Age or Length of credit history:

    The Length of your credit history holds 15% of your CIBIL score. Credit bureaus usually consider the average years you have had a credit account. Therefore, having a long credit history with a good repayment track indicates that you are a credible borrower.

  • Type of debt or credit mix:

    Loan is of two types: secured and unsecured. And a credit mix accounts for 10% of your total CIBIL score. This means your score will boost if you have a mix of both types of loans, such as a personal loan, car loan, home loan, credit card, etc. It indicates that you can manage different types of credit accounts.

  • Credit inquiries:

    Credit inquiries hold 10% of your total CIBIL score. It indicates the number of times a person applies for a loan. Each time you apply, the lender will conduct a credit check, and an inquiry is recorded on your credit report. These requests can potentially reduce your CIBIL score as they make you seem credit hungry.

Now that you know the factors that affect your CIBIL score, it is necessary to know how CIBIL scores play a vital role in approval of your loan application. So read on to know!

Also Read: Top 5 CIBIL Score Improvement Factors

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Role of CIBIL Score in Loan Approval

Your CIBIL score plays an essential role in your loan approval process. It helps banks and NBFCs to evaluate your creditworthiness and use it to make a lending decision. And generally, you must have a CIBIL score of above 750 to be eligible for a personal loan.  So below are the different ranges of a CIBIL score.

CIBIL score range What does it mean for your credit health?
  • Poor CIBIL score
  • Irregular repayment behavior
  • Payment defaults
  • High credit exposure
  • High risk of turning a defaulter
  • Fair CIBIL score
  • Late payment of credit card bills/EMIs
  • Multiple credit inquiries
  • Good CIBIL score
  • Responsible repayment behavior
  • Long credit history
  • Eligible to avail loan and credit card
  • Might have to pay higher interest rate
  • Low risk of turning a defaulter
  • Excellent CIBIL score
  • No defaulted payments
  • Timely payment of bills
  • No unpaid dues
  • Responsible credit handling
  • Lower interest rates
  • High negotiation power
  • Clean credit report

That said, there are a few misconceptions about the CIBIL score! Hence, it is essential to be aware of making an informed decision when availing of a personal loan. Therefore, the points below will bust the significant myths about the CIBIL score!

Also Read: Personal Loan Eligibility: What You Need To Know?

Myths About CIBIL/Credit Score

Here are some of the most common myths associated with CIBIL score:

  1. CIBIL score does not have any impact on your loan eligibility

The CIBIL score mainly represents your creditworthiness and your credit history. A high score indicates that you are a low-risk borrower and will help increase your loan approval chances. This means that having a high CIBIL score will boost your loan eligibility. Moreover, you will be eligible for higher loan amounts at lower interest rates. Therefore, your CIBIL score has a major impact on your loan eligibility.

  1. Making investments can damage your CIBIL score

Making smart investments does not affect your CIBIL score, as it will only help you secure your future. However, if you miss out on your EMI payment, it can have a negative impact on your CIBIL score significantly. Therefore, making investing does not affect your CIBIL score solely.

  1. You cannot get a loan with a low CIBIL score

A low CIBIL score will reduce the chances of getting your loan approved instantly. However, some lenders may still approve your loan even if you have a low CIBIL score but at higher interest rates. Therefore, as mentioned above, you can get a personal loan without a CIBIL score by following the above mentioned alternatives.

Now, Even if you have alternatives to get a personal loan without a cibil score, you must pay attention to the benefits of having a good CIBIL score, as it helps you achieve your financial goals of owning a house or a car. Moreover, a high CIBIL score will help you get instant loans to cover all sudden financial needs. So let us now look at the benefits of having a good CIBIL Score.

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Benefits of having a Good CIBIL Score

  • If you have a high CIBIL score, you will automatically become eligible for any loan or credit card.
  • You will have the additional benefit and the power to negotiate with your lenders for lower interest rates on your loans.
  • With a high CIBIL score, you can easily get discounts on credit cards with exclusive benefits and rewards.
  • A high CIBIL score implies responsible financial behavior, so you can also ask for a higher loan amount.

Worried about your credit score? Click here to get instant credit report!

How To Improve Your CIBIL Score?

Although there are alternate ways to get a personal loan without CIBIL score, you must still take measures to improve your score to have credibility when applying for a loan in the future. Here are the tips you can easily follow to improve your CIBIL score:

  1. Make timely payments:

    As your payment history has the major share of your CIBIL score, it is essential to pay all your EMIs on time. To ensure timely payments, you can set reminders on your phone or select an auto-debit facility on a scheduled date to pay your dues. This way, you can pay off all your credit cards or loans on time, improving your CIBIL score.

  2. Maintain a low Credit Utilization Ratio (CUR):

    A Credit Utilization Ratio (CUR) is the percentage of the credit limit you have used at a given time. You must maintain a low credit utilization ratio to improve your CIBIL score, usually less than or equal to 30% of your total credit limit. Because if you use more than your credit limit, it indicates that you are credit hungry and are unable to manage your credit.

  3. Avail loans only when required:

    Before you apply for any loan, know if you can repay it on time. This way, you can avoid taking loan amounts more than your need and will make it easier for repayment, which will ultimately improve your CIBIL score.

  4. Avoid making multiple credit inquiries:

    Each time you apply for a loan, the lender will conduct a credit check to determine your credit score. And this will get recorded in your credit report as a hard inquiry. And if you apply for multiple loan applications, there are high chances of multiple hard inquiries getting recorded which will, in turn, affect your score. Hence, only apply for one loan at a time.

  5. Check your CIBIL report:

    Sometimes, errors in your report can also reduce your CIBIL score. Hence, make it a habit to check your CIBIL report regularly, as it helps you identify potential errors and get them rectified on time.

  6. Keep your old credit accounts open:

    Your old ones will have a long credit history even if you no longer use them. A long credit history indicates that you have been a responsible borrower with a good repayment track. Therefore, keep your old credit account open to improve your CIBIL score.

Also Read: 10 Ways To Improve Your CIBIL Score In Less Time


Despite a low CIBIL score, the tips mentioned above will increase the chances of getting a personal loan with a low CIBIL score. However, you must take constructive steps to improve your score by making timely repayments and regularly review your credit report. If you want an instant credit report, you can get one using Buddy Score to keep a track of your creditworthiness.

You can also apply for personal loans at affordable rates from one of the best loan aggregators, Buddy Loan. With minimum documentation and a paperless process, you can get your loan amount within a few hours of approval.

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