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Personal Loan Without CIBIL Verification Research Team | Posted On Wednesday, January 30,2019, 11:10 AM

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Personal Loan Without CIBIL Verification



All About Getting a Personal Loan without CIBIL verification:

CIBIL assigns a 3 digit number ranging from 300-900. It is a summary of credit worthiness. The credit score of a person is based on the repayments and loans availed (credit history) that is sourced from banks. CIBIL Score is one of the primary parameters that banks consider for approving a loan and is one of the most efficient systems that are recognized by all the banks as an authority on credit rating system.

The CIBIL score gives an idea on the repayment capacity and debt management capabilities of an individual. Banks generally do not offer loans to CIBIL defaulters as they follow strict guidelines for sanctioning loans. However, sometimes such applicants are offered loans considering some other eligibility criteria like high monthly income, employment in a reputed company (Fortune 500 Company), good CIBIL score of spouse or parent.

If the CIBIL defaulter meets these parameters, then the lender might consider sanctioning a loan. The only difference from a personal loan offered to applicants with a good CIBIL score is, lenders quote a higher rate of interest for people with poor CIBIL score.

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SEE ALSO: Instant Personal Loan for an Emergency

Personal Loan Without CIBIL Verification

What Do Lenders Verify From CIBIL?

When a personal loan application is received by the bank, they check credit report and credit score. The Bank verifies the following details:

  • Repayment history: Before approving the personal loan, lenders check the repayment history of the applicant and look for loan defaults.
  • CIBIL score: the CIBIL score determines the credit worthiness of the borrower. It is an indicator of the financial health of the borrower.
  • Income and employment status: to avail a personal loan, the borrower must have a steady source of income and must have minimum 2 years of work experience. This determines the borrower’s eligibility to repay the loan.
  • EMI and income ratio: Personal Loan EMIs should not exceed 50% of the monthly salary.
  • Account information: the lenders look for loan write-offs.

SEE ALSO: Personal Loans For Pensioners

Factors behind Applying for Personal Loans without CIBIL Verification:

Banks consider CIBIL score an important parameter for sanctioning personal loans. The banks do not approve the loan application, if the candidates CIBIL score is below a certain score. There may be circumstances where an applicant can avail a personal loan without CIBIL verification:

  • Low CIBIL score: a CIBIL score in the range of 300 to 600 is considered to be a poor credit score. The banks may not approve unsecured loans for this credit score.
  • No CIBIL score: an applicant who has never taken a loan or used a credit card has no CIBIL score. The banks may approve loans for an applicant with no CIBIL score, but may charge high interest rate.

How to get a personal loan without CIBIL Verification?

An applicant can also opt for personal loan without CIBIL verification. Generally banks and other financial institutions do not consider or approve personal loan application for borrower’s with low or no CIBIL score. In that case, a borrower can look for other sources like co-operative banks. However the interest rates will be higher for such applicants. Given below are some criteria through which borrowers can avail personal loan without CIBIL verification:

  • Collateral loans: an applicant can opt for collateral loans by keeping an asset or bank fixed deposit as a security against the loan, in case he/she has a low or no CIBIL score.
  • Peer to peer lending: you can ask for small personal loans from your peers or money lenders. However, the rate of interest will be higher than banks and NBFCs.
  • Loans on spouse or parent’s CIBIL score: If your parents or spouse have a good CIBIL score, then you can apply for a joint personal loan by making them your co-borrowers.

SEE ALSO: Personal Loan For People With Bad Credit

Personal Loan for CIBIL Defaulters:

CIBIL defaulters generally do not get loans. But there are some institutions like reputed banks or financial institutions, which offer credit to loan applicants by considering Company and monthly income.

Individuals working in a reputed company and getting a high monthly salary are generally granted personal loan even if they are defaulters. Banks follow strict rules and guidelines while sanctioning a loan and consider CIBIL score as an important parameter for loan approval.

The NBFCs do not have such strict regulations and offer personal loan to individuals having low CIBIL score. They generally charge a much higher rate of interest on the loan sanctioned and the borrower has to pay higher EMIs on the loan.


How can I apply for a personal loan without a CIBIL score?

Given below are some of the options to get a personal loan without CIBIL verification:

  • Opt for a secured loan by pledging an asset
  • Opt for a credit card from the bank where you have your salary account or savings account for a long time.
  • You can opt for a loan through your company in case the organisation has a good relationship with the bank.

How can I make my way through CIBIL verification despite a low CIBIL score?

You can improve your credit score by following the steps given below:

  • Payback the outstanding amount on your credit card. If you are paying the minimum dues, then that is just not enough. Clear all your dues as early as possible.
  • Maintain a good credit utilization ratio (CUR), and make sure not to come too close to your prescribed credit card limit too often.
  • If your loan or credit card application is rejected, do not apply for the same immediately, with some other bank. Wait for a period of 6 months and then apply again.

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