The CIBIL score is among the first things that a lender will consider when trying to get a loan in India. This data helps banks and lending institutions assess the creditworthiness of an individual and their capacity to repay when applying for loans. What does this mean? Does it suggest that people who do not have CIBIL scores aren’t qualified for loans? Not at all. Borrowers can get loans despite having an unsatisfactory score or even a zero CIBIL score.
CIBIL and CIBIL / Credit Score
The Credit Information Bureau (India) Limited (CIBIL) is the credit bureau that keeps the records of individuals and companies who have credit-related transactions, such as credit debit and credit cards in India, and identifies the CIBIL score.
A CIBIL Score is a 3-digit numeric overview of the individual’s credit history, which reflects the credit profile. It is based solely on past credit behaviors, like borrowing and repayment patterns which are shared by lenders and banks with CIBIL frequently.
The past actions of a person are considered to be an indicator of what is to come, so the CIBIL score reflects a consumer’s creditworthiness. An excellent CIBIL score can result in faster and quicker loan approval and a low score indicates that the borrower is not financially sound. The CIBIL score can range between 300-900 based on different factors such as repayment history, credit card utilization, the number of times a borrower has applied for a loan, and loans to meet the needs of the borrower.
In general, a score of 300-699 is thought to be a poor and high CIBIL score. Banks are not likely to provide loans to these people however, even in the event that they do, the rate of interest will be 0.5 percent to two percent more. In the event that the Score drops below 700 (mainly due to defaults on prior loans) Banks may decline to grant any loans. In the case of someone seeking a credit loan or card one of the most important elements that lenders look at is the individual’s credit profile, as indicated in the CIBIL Score. Banks generally provide loans to people who fall between 750 and 900. However, Oak Park is able to provide any loan, even without it.
How do I get a Personal Loan, without CIBILor Credit Score?
The process of applying for a loan with no CIBIL score can be a bit difficult however, Oak Park makes the work easier by offering loans to people who do not have a CIBIL or credit score.
1. Opt for Collateral Based Loans
Most importantly the personal loans are not secured by collateral and don’t require security. However, this is only true in the case of a great or high CIBIL score. Additionally, if you do not have an acceptable credit score, you’ll be required to provide security for the personal loan. But, you can make a pledge of any of your important assets to be collateral for a loan to Oak Park. This will make it simpler to obtain loans from the lender you prefer.
2. Demonstrate your creditworthiness
A lender is always looking for a trustworthy borrower to approve loan applications. If you have an ongoing source of income, you are able to apply for a personal loan from Oak Park. You may also apply in the event that you have a poor CIBIL score or have no CIBIL score and have your salary slip or bank statement to prove your income. Additionally, it will show your capability to pay back your loan amount on time.
3. Get a Guarantor/ co-applicant for the Loan
Additionally, you may apply for a personal loan with a co-applicant or a guarantor. However, you should ensure that the person who is guaranteeing your loan has a steady source of income. If your co-applicant happens to be an immediate family member it is important to inform them in advance of your plans to apply for the personal loan to avoid confusion.
The co-applicant has to complete this KYC process using the easy-to-use Oak Park application. Then, they’ll review the bank statements as well as the credit history. You’ll then be able to approve your loan application If the applicant meets the requirements.
4. Apply for a Lower Loan Amount
It’s better to not apply for a larger loan amount if you have a low CIBIL score or do not have one. This is due to the fact that the lender could doubt your creditworthiness, or even charge excessive interest. However, Oak Park offers low-interest rates on these loans. This increases the chances of being approved for the loan.
5. Request either an N or NH on your credit report by contacting your lending institution
The term “No History” (NH) (or History Not available (NA) as well as on the credit report indicates the absence of any prior credit activity or credit within the past 36 months. In these situations, you may seek assistance from Oak Park consultants. They can assess your needs and suggest the possibility of a personal loan at a reasonable rate of interest.
6. Bonus Tip: Do it The Oak Park way
Lender simplifies things simpler for you. It is no longer necessary to go between banks and banks since it is difficult to obtain instant approval for a loan without a CIBIL score in India. We want to be among the easiest to use loan apps that are instantly available in India. Here are the five documents required to get an online loan in a flash using Oak Park.
- PAN card
- Address ID document
- Aadhar card
- Statement from the bank