Loan without CIBIL Score in India: How to get no Credit Check Loans Snneha Lukaa April 25, 2019
What are No Credit Check Loans?
Anyone who takes a personal loan will have their credit history checked by the lender before their application is approved, since the lender must assess the level of risk involved in granting a loan to a borrower. Often times, a personal loan gets rejected because the applicant has a bad credit history, low CIBIL score, or does not have any prior credit history. This becomes challenging for these individuals to not only manage their personal finances, but also improve their credit scoreIf you fall into any of these categories, don’t worry- you can get a loan, bad credit being no issue! These are known as no credit check loans, in which a borrower who has bad credit history or is looking to get a loan without CIBIL score can get guaranteed loan approval, no credit check involvedWhether you are looking to avail a loan for the first time and have no credit history, or have a bad CIBIL score, we’ll discuss ways in which you can still get a personal loan.
Features and Benefits of no credit check loans
When an individual applies for multiple loans within a given period and doesn’t get any of them approved, it negatively impacts their credit score. In the case of no credit check loans, there is a higher approval rate compared to other loans and you can also borrow a larger amount. By getting a no credit check loan, you will be able to improve your credit score.Below are some of the features and benefits of taking a no credit check loanRegardless of an individual’s credit history, the loan is approved Good credit history is not requireHigher loan amounts can be availeFast loan approvaHigher interest rates than regular loanMinimal documentation and paperworSince collateral is not required, there is no risk of your assets becoming possesseLoan tenure is flexible and can vary
Disadvantages of No Credit Check Loans
While there are advantages to no credit check loans, there are also several drawbacks to them as follows:Loan terms can be unfavourable as the lender decides the same. This is because the loan is approved without any credit check or collateral, therefore the terms are generally in favour to benefit the lenderHigher interest rates generally come with no credit check loansThe loan repayment tenure tends to be shorter for these loans
How to Avail No Credit Check Loans in India
In India, banks and NBFCs do not offer no credit check loans, but they do offer loans for those with bad credit. Therefore, the best alternative choice for no credit check loans in India are secured loans. Not only do these loans enable those with bad credit to get a loan, it also helps them to rebuild a good credit score. Secured loans are easily available from banks and NBFCs in India.
Information on Secured Loans
As mentioned earlier, while banks and NBFCs in India don’t provide no credit check loans, they do provide loans for those with bad credit score. It’s a good option to take a secured loan as an alternative to no credit check loans. Secured loans are loans that are provided in exchange for security or collateral. When taking a secured loan, the borrower pledges their asset(s) as collateral to the lender who is providing the loan. Secured loans are beneficial for both borrowers and lenders, as borrowers can avail lower interest rates and flexible repayment tenures; lenders benefit from secured loans as they can claim possession of the pledged asset, should the borrower fail to repay the loan.Below are some types of secured loansHome loanBusiness loan (loan against assets such as buildings, raw materials, machinery, etcMortgage loaCar loaLoan against fixed deposit
Features of Secured Loans
Loan is taken against security or collateral Loan amount is given based on the value of pledged assets Lower interest rates than other loans, with option of choosing fixed or variable rate Flexible repayment tenures Variety of loans available for various requirements No requirement for third-party guarantor Available for self-employed individuals
To be eligible for a secured loan in India, you must meet the following criteria: Individual must be salaried or self-employe Minimum income for some banks is at least Rs 3 lakh per annu Business loans require a minimum of 3 years in busines Applicant should be at least 18 years or olde Applicant should be a resident of India
Taking a personal loan might seem challenging if you want a loan without CIBIL score or have no prior credit history. In this case, you can consider applying for a secured loan in India which will give guaranteed loan approval, no credit check involved. Since you’ll have to provide some assets as security in order to get your loan approved, ensure you have your collateral ready before applying.