Getting Personal Loan Without CIBIL

Why CIBIL score is Important 

Source: Google

A CIBIL score is a number with 3 digits used to check if the borrower is eligible or not to take a personal loan. This score helps in checking if the Borrower of money is trustworthy and he or she will pay back the loan amount or not. A higher CIBIL score displays good creditworthiness and honest repayment behavior. It takes into consideration the historical 6 months data of an individual to assess the person's ability to repay his loans. A person can get a personal loan without CIBIL by fulfilling the requirements of certain evaluation criteria made by the financial institutions lending money. Passing these criteria may make a borrower eligible for personal loan without CIBIL. The only drawback of getting a loan without CIBIL is that the lender demands comparatively higher rates of interest from the borrower.

Key things to consider before taking Personal loan without CIBIL

Source: Google

The CIBIL score is the key factor for getting approval from any financial institution for the personal loan. He can maintain a good CIBIL score for loan approval by being disciplined in timely payment of his credit card dues. Low credit utilization is also a major factor determining a good credit score, the prescribed limit for a good credit score is 30% credit utilization. There are certain points  to keep in mind  before taking a personal loan without CIBIL.

1.   Don’t rush into borrowing from the first lender you meet, without adequate research you can miss out on the opportunity of getting better deals in the market.
2. The personal loan without CIBIL generally charges higher rates of interest so keep a check on the other charges like processing fees to avoid huge EMIs.
3. Avoid borrowing the excess amount of money that empties your pocket at the end of the month.
   

   How to take a personal loan with Low or No CIBIL

Source: Google

A Financial institution or any lending agency keeps a check on the CIBIL score of the borrower to ascertain the ability of a person to repay his loan amount. CIBIL score plays a major role while granting personal loans to any borrower. However, there is still hope for a person looking to get a personal a loan with no CIBIL score. A person can get his personal loan without CIBIL approved by fulfilling certain criteria’s made  by the financial institutions like:

  

1. A borrower with enough monthly income to pay off his personal debt can easily get his personal loan approved.
2.   A borrower can also make use of his parental credit score and get his personal loan without CIBIL approved by adding him/her as a joint loan holder.

He/she can also use collateral to get a personal loan and can avoid credit score checks by the financial institution.