A Personal Loan is an unsecured loan given to a salaried person with a decent credit score. A credit score is thus an important determinant for any applicant for taking a loan. It defines your creditworthiness and helps us approve your loan application. However, your credit score is necessary for us to evaluate your value as a loanee. You do not need to worry if you are not aware of your Credit Score. You can still send an application to us and we will get your score checked before approval anyway. If you in the past have paid your EMIs on time and never had a default, chances are your application will be approved instantly.
Personal Loan for CIBIL Defaulters
CIBIL defaulters are the main reason for a loan application to be rejected by banks and other financial institutions. A person becomes a CIBIL defaulter, when he delays his EMI payments or does not pay his debts, or have too many loans on his name at one time. All these factors can lead to a CIBIL defaulter or low CIBIL score. CIBIL defaulters are a red flag for any lender and they are more likely to reject a loan application straightaway of a CIBIL defaulter. Such people are considered irresponsible and not creditworthy of a loan. Most lenders if not all will be reluctant to give a loan to a person who is has been a CIBIL defaulter in the past. Thus you need to be very careful while taking a loan and ensure you pay EMIs on time to avoid being a defaulter.
Tips to avail a Personal Loan despite having a low or no CIBIL score
- Prove that your Income is enough to repay the Loan: Despite a low credit score or having no credit score, you can still avail a personal loan of your choice provided that you can prove it to the lender that your income is sufficient to repay the loan on time.
- Ask for a lower Loan Amount: Higher the loan amount, higher will be the interest rate charged on it. If you have a low CIBIL score and ask for a higher loan amount, then the lender may not be willing to sanction your loan since they may doubt your ability to repay such a huge amount on time. Hence, always go for a lower personal loan amount since the rate of interest charged will be low.
- Correct mistakes in your Credit Score: You must go through your credit score from time to time. Sometimes, there can be mistakes such as wrong name, or probably the latest information hasn’t been updated which can severely affect your overall credit score. Hence, always check your credit score and correct the mistakes, if any. This will help your credit score to improve and it will be easier for you to avail a personal loan of your choice.
- Apply with a Co-Applicant: If you want to apply for a personal loan, but have a low credit score, you can up your chances of approval by applying for the loan with a co-applicant or a guarantor. It is important that your co-applicant is preferably one of your family members who should be informed beforehand regarding your intentions to avail a personal loan. The applicant will have to complete the KYC process. The lenders will check whether the co-applicant has a steady income and will be able to repay the loan on time. They are most likely to approve your loan if the applicant meets the criteria.
- Ask the lender to mark NA or NH in your Credit Report: The NA or NH on your credit report marks absence of any previous credit activity or absence of credit in the last 36 months. In such a case, you may not have a credit score in your CIBIL report. So, you can try and speak to your lender regarding your credit inactivity. It is likely that the lender will offer you this loan at a slightly high rate of interest.
- Collateral based Loans: You can opt for collateral based personal loans where you will have to pledge collaterals such as shares, assets, gold, FDs, etc. In these cases, you are not required to show your CIBIL score and it is much easier to avail a personal loan of your choice from a lender.
How to Get a Personal Loan without CIBIL/ Credit Score?
Applying for a loan without CIBIL score is quite tricky makes your work easy by providing loans to individuals even without a CIBIL or credit score.
1. Opt for Collateral Based Loans
Primarily, personal loans are collateral-free and do not require security. But this is only significant if you have a good or high CIBIL score. Moreover, if you don’t have a credit score, you will have to offer security on a personal loan. Despite that, you can pledge any of your valuable assets as collateral on loan. This will make it easier for you to avail of a loan from the lender of your choice.
2. Prove your Creditworthiness
A lender always looks for a creditworthy borrower to approve a loan application. Therefore, if you have a stable source of income, you can easily apply for a personal loan. You can even apply if you have a low CIBIL score or no CIBIL score displaying your salary slip or bank statements as proof of your income. In addition, this will prove your ability to repay the loan amount on time.
3. Get a Guarantor/ Co-Applicant for the Loan
Likewise, you can apply for a personal loan with a co-applicant or a guarantor but make sure that the guarantor has a steady income. If your co-applicant is a family member, you should inform them beforehand regarding your intentions to avail yourself of a personal loan to avoid confusion.
Then the co-applicant needs to fulfill the KYC process. They will then check the bank statements and credit history. Then you’re most likely to get your loan application approved if the co-applicant meets the criteria.
4. Apply for a Lower Loan Amount
It’s best to avoid applying for a higher loan amount if you have a low CIBIL score or don’t have one. This is because the lender may either doubt your creditworthiness or charge high interest.. This ultimately increases your chances of getting the loan approved.
5. Ask for a NA or NH on your Credit Report from your lender
No History (NH) or History not Available (NA) or on your credit report marks the absence of any previous credit activity and credit in the last 36 months. They may consider your situation and offer a personal loan at a reasonable interest rate.
- PAN card
- Address ID proof
- Aadhar card
- Bank statement
Individuals can apply for a loan without CIBIL scores. You can also explore more money management, investment, instant personal loans, and financial wellness.
Where to get Personal Loan without CIBIL ?
Omozing helps make Smart Money Moves for a Lifetime. They strive to get lowest interest rates and best terms for your Online Applications at www.Omozing.com . We’ve made business lending smarter, faster and easier by transforming the approval process from stumbling blocks to stepping-stones. This enables borrowers to not just get access to capital, but also understand what areas they need to work on in order to enhance their credit profile. Omozing ensures that Borrowers get a secure, safe and reliable application process that be tracked online.
5 Reasons to choose Omozing
1. Loans from INR 10k to INR 10 lakhs
Personal Loan Interest Rates starting from 0.8% p.m, and Loan amount ranging from INR 10,000 to INR 10,00,000. The Minimum and maximum repayment period ranges from 1 month to 48 months. CIBIL 600+ all company categories (including LLP, Self Employed, Proprietorship)
2. Cutomised Tailor Options
- Depending on your demands, we may provide quick financing of varying quantities at affordable interest rates.
- You have the freedom to utilise your loan anyway you want, whether for business or for immediate personal needs.
- Flexible repayment options depending on your specific cash flow and budget, as well as conditions that is beneficial to your position.
3. Lower CIBIL
While most lenders require borrowers to have a CIBIL score of over 750, at Omozing.com provide loans even with 600. Besides the CIBIL score, we also considers your age, employment status, and net monthly income.
4. Ways to apply
You can apply for a personal loan through us by 2 ways:
1. You can download our Mobile Application from Google app store.
2. Apply on portal using out Personal Loan link
5. Prompt Loan Disbursal
An easy online application process facilitates speedy verification and disbursal of loan. Get KYC verified from the comfort of your home and have our loan manager take care of an instant transfer of funds to your account.