Is Without CIBIL Score Personal Loan Possible?

Wishes and needs go hand to hand in today’s dynamic work environment. You wish to roam an exotic location with your family members. At the same time, the imminent cash needs also arise. In a similar vein, there are a lot of wishes and needs to be fulfilled. All such can be met with a personal loan from either a bank or non-banking finance company (NBFC). It comes easy to you without any need of submitting the collateral. But, in reality, the loan application goes through a series of approval tests conducted on several parameters.

One of the parameters that financial institutions give due consideration is the credit score assigned by bureaus such as CIBIL. It assigns scores to individuals having a minimum repayment track of 6 months to a year. The score has to be good so that the lender can nod the application. Now, it’s possible for an individual to be having a poor repayment track resulting in a poor score. There’s also a possibility of not having the score due to lack of credit history. It can lead you to question, is without CIBIL score personal loan a reality? Well, it is, based on fulfilling certain conditions.

Personal Loan Based on Security

Banks or NBFCs may ask you to submit the security based on which it can grant a personal loan. The loan can account for 80%-90% of the value of the security, which can be anything from a fixed deposit, life insurance policy, National Savings Certificate (NSC), Kisan Vikas Patra (KVP), etc. The loan backed against security often comes at a lower rate of interest compared to when given without any security. The reduced rate would further reduce the interest outgo over time.

Personal Loan Based on Savings or Salary Account Relationship

You must have maintained the savings or salary account relationship with the lender. Now that can help you access the loan even if you don’t have a CIBIL score. The bank must have had a track of your transaction over time to feel confident of lending you. Salary account has a rather distinct advantage over the normal savings account as the former gives the lender a clue of the salary you earn. The account statement reads as salary credited with a certain amount. So, the lender draws confidence from the income earned and thus disburses the loan without any worry.

Lending Apps Also an Option

Lending apps are perhaps the best tool by which you can get a personal loan without any CIBIL score verification. These apps facilitate faster loan disbursals, a USP that they are renowned for. There are several apps such as EarlySalary, PaySense, Money Tap, CASHe, etc. The maximum loan that can be given is ₹2-5 lakh across these apps.

How Do Lenders Decide the Loan Amount?

Even as lenders can offer a loan without undertaking a CIBIL verification, the eventual loan amount would depend on your income and repayment potential. Lenders would get an idea of your income and expenses by looking at your salary slips and bank statements. The bank would thus get an idea of the Equated Monthly Installment (EMI) that you can pay without any delay. Based on the EMI, the loan amount can be fixed.

Shall You Check the Personal Loan EMI Calculator?

Yes, you should check the calculator to get an idea of the repayment ahead of you. The calculator helps to compute installments based on tenure, loan amount and interest rate. As far as the interest rate is concerned, it can be anywhere between 11%-25% per annum. Banks can grant a maximum of ₹15 lakh for a period ranging up to 5 years.