The CIBILTM score is one of the most important factors that influences your short term loan application. It is a number between 300 to 900 representing the creditworthiness of a person. The higher the score, the higher the chances of getting loan approval. But, does it mean that you will not be able to get a loan without a CIBILTM score? No, you can. Let us now discuss how. 

How To Get A Short Term Loan Without A CIBILTM Score? 

Let us see how to get a short-term loan without a CIBILTM score. 

Apply With A Guarantor

You can apply for a short term loan with a guarantor who has a good CIBILTM score and history. Sometimes, your spouse or your parent will have a good credit history and applying along with them will increase your chances of getting a loan. However, ensure that the guarantor has a steady income. The co-applicant also has to provide the necessary KYC documents. The bank will then do a verification of the documents and credit history of the applicant. Then, the loan application will be approved most likely if the guarantor meets the criteria. 

Apply For A Lower Amount  

It is not ideal to apply for a higher loan amount if your CIBILTM score is low. The lender may reject your loan application since you will be seen as a high-risk borrower.  Financial institutions will doubt your repaying capacity. So, it is better to apply for a lower personal loan amount. This will increase your chances of loan approval. 

Request Your Lender for a NA or NH on your Credit Report 

NA - The history not available or NH which is No history available on your credit report implies the absence of credit activity for the past 36 months. You can intimate this to your lender.  He will consider your situation, and you will be offered a short-term loan but at a slightly higher interest rate. 

Prove your Creditworthiness

A lender generally looks at the creditworthiness of a person before approving a short term loan. You will be considered creditworthy even if you have a good income. Just display your salary slip and bank statements corroborating your income. This will be enough for the lender to approve your loan application. 

Pledge Collateral for Your Loans 

If you have a good income or a good CIBILTM score, you need not give collateral for your loan. But a low or no CIBILTM score plus a low income will drastically reduce your chances of getting a loan.  In this case, apply for a collateral-based loan. You can pledge some of your assets as security or collateral. The lender will then sanction the loan as it eliminates the risk of defaulting. When you default, the lender will automatically sell the collateral and compensate for his losses from the amount obtained.

Gold is the most common collateral used by applicants in India to avail of short term personal loans without a CIBILTM score. The money obtained from taking a gold loan can be used for anything. A lot of people are opting for this type of short term loan. You can keep any of your assets as collateral like land, a vehicle (Not already hypothecated under a separate loan), gold, etc. The lender will verify the value of the asset. 

Depending on your need, you can put up any asset like land, a vehicle (not already hypothecated under a seperate loan), gold, etc. The value of the asset will be verified by the lender, and the maximum loan amount (which will be slightly lower than the market value of the asset) that you are eligible for will be computed.

Monitor Your Credit Health

It is always essential to keep track of your CIBILTM/credit report. If you find any inaccuracies or discrepancies in your report, you can file a dispute with CIBILTM regarding the same and get them rectified. Late updation by CIBILTM  or errors in the report may impair your CIBILTM score and this is further detrimental to your prospect of getting loans. Some borrowers who are eligible for loans may lose the opportunity to get approved due to these mistakes. So, it is highly recommended to get them rectified. 

Check your credit score for free on CreditMantri Here. You can also download your credit report after verifying your credit score. 

Peer to peer lending platforms

Peer to peer lending platforms establish a direct connection between the borrower and the lender. Lenders will be able to regard your situation and help accordingly. 

How To Build Your CIBILTM Score? 

There are certain things you need to follow to improve your CIBILTM score. They are as follows: 

  • Timely repayments of EMIs
  • Keeping the credit utilization ratio below 30% 
  • Reporting errors in your CIBILTM report

Conclusion

A CIBILTM score is one of the most important factors that determine your creditworthiness and how eligible you are to get credit. To get instant approval of your loan application, a higher loan amount, and low interest rates, a high CIBILTM score is ideal. However, the above ways will help in getting a short term loan without a CIBILTM score or low score. 

FAQs

1. How to get a personal loan without a CIBILTM score and a salary slip?

You can provide other documents like income tax return - ITR, 12 months bank statement, Form 16, and income certificate. This will make your loan application stronger. 

2. What is an urgent cash loan?

These loans are those which are processed quickly, allowing borrowers to get cash within a short time. Urgent cash loans without documents, such as bank statements or income proofs come in handy especially if you need immediate funds but may not be ready with all the paperwork.