If you do not have a credit history or have very little credit history, it can be very hard to get a personal loan. Most banks or Non-Banking Financial Companies (NBFCs) look at a person’s credit history and credit score to issue a personal loan. This is because a personal loan is an unsecured loan, which means you do not need to provide any money, property or shares as collateral. This increases the risk factor for the bank or the NBFC and thus, they check your creditworthiness based on your credit score and credit history.     
If you are new to credit or hardly have any credit history, it is better to build your credit score and credit history before applying for a personal loan. Here are a few other options for you to help you get a loan sanctioned.     

1.    Having a guarantor while applying: If you apply for a loan with a guarantor who has a steady monthly income with a good credit score and long credit history, this can help with getting a personal loan. A guarantor is a person who will need to pay for your loan if you default on your repayments. So, providing a guarantor with good credit score and history can prove to the bank as a reliable source to give you a loan. 
2.    Apply for score builder loans: There are special credit builder loans for people who are new to credit or who have very little credit history, wherein the loan amount that you borrow is held in a bank account while you make your payments to the bank. Your on-time payments are reported to a credit bureau thereby helping you build your credit score. The money is then released to you once the loan amount is paid off. These are also called Fresh Start Loans.
3.    Provide proof of regular income: A steady job which gives a regular monthly income with a reputed company can help you get a personal loan. If the company you work for is a listed company with the bank you are applying for a loan with, then there is a possibility of getting your loan approved. Also, you must have been working for the same company for a minimum of 2 years or more. Proof such as pay slips and bank statements can help you get a personal loan in these cases. Also, continuity of the job must be proved. 
4.   Get a lifetime free credit card: You could try applying for a lifetime free credit card and use this as a means to build your credit score further. You will not have to pay any amount to get a lifetime free credit card and if you make your payments on time, you can be on your way to building a good credit score.
5.    Try a gold loan:  If you are new to credit and looking for money for a sudden financial emergency, getting a loan against gold would be a good idea. You can pledge your gold coins or gold jewellery and get a secured loan to use for your financial crisis. Also, the repayment of this loan will help you build your credit score. These loans get easily approved as you do not need a credit history or a good credit score, because the lender can always sell your gold if you do not repay on time. 
6.    Have a good relationship with the bank:  If you are an existing customer with the bank you are borrowing from and have maintained a good long-term relationship with them, then there are higher chances of getting a personal loan from them. Long-standing relationships come in handy at these times.
To build your credit score and credit history, click here.