Do you have a low CIBIL score? Is your loan application rejected by multiple banks? Worry not! There are some lenders through which you can apply for a loan and get approval immediately.
How to Apply and Get an Instant Loan with Low or No CIBIL Score?
Non-banking financial companies (NBFCs) are the best as they quickly approve your loan, unlike banks. You can apply for an instant loan and get cash within a few hours even if you have a low CIBIL score. You have to research well and choose a lender who will approve your loan quickly without any hassle.
How CIBIL is Associated with Availing a Loan?
To avoid any frauds and make sure loan repayment is done by the borrowers, the government gave importance to credit history. Thereafter, RBI has issued regulations that a lender must not offer an individual with any form of credit without evaluating the individual’s CIBIL score.
CIBIL score ranges from 300-900. If your score is closer to 900, you can easily avail of a loan. Having a score above 800 signifies your credibility as a borrower. A lender is more inclined to provide you with a loan if your CIBIL is good and the lender believes that you will repay the loan promptly. In case your score is low, the lender believes that you are financially irresponsible as a borrower and it means you are not good at money management. So, your CIBIL score plays a key role in the approval of your loan.
Factors that Affect Your CIBIL Score
There are many factors that affect your CIBIL score and they subsequently affect your loan approval chance. Some of the factors include:
- Loan default
- Delay in loan repayment
- Pending credit card bills
- Applying for a loan with multiple lenders or credit cards
- More dependence on unsecured loans
These are some of the important factors that affect your CIBIL score.
How to Get a Loan without a CIBIL Score?
If you don’t have a CIBIL score at all, don’t worry. It’s still possible for you to get an instant loan. The fintech sector is so advanced that lenders are considering several other factors using which they can offer a loan to a borrower. Some of them include:
- Show proof of your income source
The main concern of any lender is whether an individual is capable of repaying the borrowed money or not. So, the lender feels confident if you show them all the financial statements of your source of income. This will ensure the lender that you can repay the loan and therefore your loan application will be approved.
- Take a loan from NBFC
Unlike banks, NBFCs do not completely rely on your CIBIL score to approve a loan. Moreover, there is not much documentation work and your loan will be approved without pledging your assets. For example, you can apply for an instant loan with FlexSalary and get approved for a loan up to INR 2 lakhs on the same day.
- Apply for a loan with a guarantor
Your loan will be approved without a CIBIL score in case you have a credible guarantor. This gives the lender an assurance of their money and therefore your loan is approved.
Hope you got enough information on how to get a loan with no CIBIL score or low CIBIL score. So, stick to them to easily get a loan in a quick time.
