Updated on: 14 July 2023
Published on: 29 April 2020
Personal loans are a great way to get through a financial crunch. However, there are certain eligibility criteria that you need to meet. Among these criteria is a credit score, which traditionally was a stringent requirement. Lenders use the credit score to assess your repayment ability.
This is especially important for a personal loan, which is an unsecured loan. So, lenders have no collateral to rely on in case you do not repay on time or default on repayment. Therefore, with a low credit score, availing a personal was not just cumbersome but also expensive.
However, there is a large group of the population that has poor creditworthiness or no credit score as they are new to credit. As such, a common question is how to get personal loans without a credit check.
Today, numerous lenders offer a personal loan without a credit check. Moreover, there are certain actions you can take to boost your eligibility and get access to the funding you need.
Read on to know how to get a personal loan without a credit check.
With advancements in the finance industry, many lenders no longer rely only on your credit score to offer you a loan. Instead, they consider different aspects of your profile and income to understand your repayment capacity and probability of default. So, you can get a personal loan with no credit check from these digital lenders. If you have a low or no credit score, select a lender who doesn’t have a stringent criterion for a credit score.
Personal loans are generally unsecured loans, meaning they do not require collateral. Given this, lenders check your credit score to understand your creditworthiness. However, if you apply for a collateral-based loan, lenders may offer the funding you need without checking your credit score.
When you choose such secured loans, you pledge your asset as security with the lender. This can be your fixed deposit investment, gold, property, and more. However, remember that if you fail to repay the loan, the lender can seize and auction your asset to recover the dues. So, be sure to apply accordingly and keep your finances protected.
Co-signers are applicants who sign loan agreements alongside you and take on the responsibility of repaying your loan if you are unable to. This reduces the risk for the lender, thereby making them less hesitant to approve your application. In this way, you are effectively leveraging the credit score of the co-signer. As such, you need to choose someone who has a good credit score and repayment history.
While your credit score is one way to show your repayment ability, there are other means to assure the lender about the same. One of these is using your income to show that you have the means to pay off the loan in time and in full. To prove your repayment capacity by leveraging your income, submit the necessary documents that serve as proof of income. You can also show paperwork related to other income you may receive, such as via rental property or investments.
In addition to the above, another option you can rely on is boosting your credit score and then applying for a loan. However, you cannot opt for this if you need immediate funding. Building your credit history to improve your credit score takes time and consistent effort.
In such cases, the best option is to choose a lender who offers a personal loan with no credit check. Fibe is a popular platform offering instant personal loans of up to ₹5 lacs at an affordable cost to applicants who have low or no credit scores. Our alternate credit scoring mechanism thus supports financial inclusion and gives you easy access to funds.
Download the Fibe instant loan app here, or simply log in to our website and enjoy a quick, simple, and entirely digital application process.
Yes, Fibe offers personal loans even to those who are new to credit. Unlike conventional lenders who provide financing at a higher cost when you have a low credit score, Fibe offers affordable funding even if you have a low or no credit score.
Fibe is among the leading lenders offering a personal loan without a credit check at an affordable cost. You can get up to ₹5 lacs with interest rates starting at 2% per month.
Traditionally, you would require a credit score of 750 and above to get a personal loan. At Fibe, you can get a loan even if you are new to credit as long as you meet our simple eligibility criteria.
Yes, you can get personal loan financing with a credit score of 500. However, be sure to choose a lender who offers affordable financing to protect your current and future financial well-being.
A credit score ranging from 750-800 is considered very good. Maintaining a good score is important for future borrowing purposes as it allows you to get more credit options at pocket-friendly terms.
Yes, you can get funding through a personal loan if you have no credit history. Choose a lender that offers the loan without a credit check or get a collateral-based loan. You can also talk to your lender and explain your case to get the funding you need.
If you have no credit history, your CIBIL score will be 0 or -1 (NA/NH).
If you are borrowing for the first time, you can apply for an unsecured loan with a lender that offers a loan with no credit check, like Fibe. You can get credit up to ₹5 lacs in 2 minutes.
Category : Personal Loan
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