Applied for a personal loan but got rejected? Well, one of the reasons could be because you have zero or no CIBIL or CIBIL- 1 record. It means you do not have any prior borrowing history with credit bureau. Yes, if you are a first-time borrower  and don’t even have a credit card, your cibil has no history. But the same situation can be avoided if you take some calculative measures that will help you to Get Personal Loan without CIBIL.

How to Apply a Personal Loan without CIBIL?

With the help of these tips, you can first generate your credit/CIBIL score, apply for a personal loan without facing rejection. Let’s just know each of them below.  

  1. Buying EMI Products: To begin with, you can buy affordable consumer durable products such as mobile phones, AC, Refrigerator, etc. which comes under easy consumer durable loans and can be repaid in less time(tenure). Doing so will help in building your credit history first as you don’t have one so that you can easily apply for a personal loan later. Here, the amount will be deducted monthly usually for a period of 9 or 12 months, depending upon the price(loan amount) of your product. 
  2. Apply for Micro Loan / Short Term Loan: To make yourself eligible for a personal loan, you first need to build your score from scratch. Thus, it is advisable to apply for micro loan or short-term personal loan that can be availed for a tenure of up to 1 year. Your short-term loan credit history will help you in availing ato meet your varied needs.   
  3. Apply for a New Credit Card: Applying for a new credit card, would be a good idea to come on a track. Choose a card, which has low annual fee/maintenance charges. Your goal here is not to become a credit card owner but to have a fair credit history for availing a personal loan smoothly. In case, you won’t  get a new unsecured credit card due to zero cibil score, you can apply for a secured credit card here to meet your purpose. 
  4. Choose Your Existing Lender: If you have a savings or salary account in a  bank, it is good to apply for personal loan from your existing bank. Some of the banks and NBFCs offer personal to new customers based on minimum salary of Rs.35,000 (metro cities) and Rs.20,000(non-metro cities) along with a minimum 1 year tenure with the company. However, expect not to have a higher loan amount and tenure will also be short, the consequences of zero cibil or cibil-1. Many lenders also give pre-approved loan offers to their existing and reliable customers, even if you are a first-time loan buyer. You just need to open your account and check the same and apply for instant personal loan online.  
  5. Apply with Co-applicant/ Guarantor: Involve a co-applicant or guarantor (with good cibil), if your score is zero as doing so will help in building trust in front of a lender for availing a personal loan. Here, a lender can have the assurance and can rely on a co-applicant as far as loan repayment is concerned.
  6. Government Employee: The lenders would be more than happy to provide a personal loan to government employee/s because they have job stability factor. Personal loan being an unsecured loan comes with a risk as far as loan repayment is concerned. Thus, being a government employee, job stability comes naturally and will work wonders for you. So, take the privilege of being a government employee and Apply Personal Loan without CIBIL.  
  7. High Income: If your income is relatively higher than your monthly expenses and you would be able to save a fair amount on a  monthly basis, you are eligible for an unsecured personal loan even if your credit score is zero. However, the personal loan interest rates would be higher here, thus your repayment burden would also be high but that’s the minimum cost you will have to pay for zero or low cibil score.
  8. CAT A or B: Individuals working in Fortune 100 or 500 companies can rejoice despite zero credit history. Yes, lenders would give approval for personal loan as working in such companies helps in gaining trust for a non-cibil loan buyer.  

Points to Ponder:

As your CIBIL is already missing, it would be better to take into consideration the below tips while building your credit score. 

  1. Apply What You Need: It is important to know your pocket-size so that you don’t over-do a loan. Do some homework and calculate your EMIs before applying for a short-term loan also. Stick to your needs as your main purpose here is to generate a credit history to become worthy of a personal loan.  

Timely Payments of EMI: Even if you have availed a short-term loan to build your cibil, it would be advisable to pay your EMIs on time to avoid the default. A default will badly destroy your creditworthiness and the same will reflect in your CIBIL Report, reducing your chances of getting a personal loan smoothly. Just to avoid the same, an auto-debit EMI payment mode would be helpful here. Opt for the same facility and rest assured.