The number of financial institutions in India has risen considerably so getting a loan is not difficult as long as you fulfill the eligibility criteria. One of the crucial factors that influence the lender's decision to accept the loan application or not is the credit score of the applicant. Getting a loan for applicants who do not have a credit score could be challenging if not impossible. So here is checklist for those who want to get a loan without a credit score:
For those who are looking for a loan with no credit score the options are limited. Depending on the requirement the applicant could decide which loan to take and which lender to approach. Getting a personal loan without CIBIL Score might not be possible so you could look for secured loans that are offered by various lenders. This could be a loan against property or gold or deposits and so on. However even for such loans there are eligibility requirements that need to be fulfilled. If you want to apply for a loan without a credit rating go through the checklist below:
Though there may be options of getting a loan without a credit check but those who have no credit history should focus on trying to create a credit trail. Getting a credit card issued is a good way to start a credit trail. Even if you do not use the card frequently, use it for small transactions every month and do remember to pay the dues on time. This will help you create a good history and a good score. If you find that getting a credit card with no credit rating is difficult then you could try and get a card issued against a fixed deposit. Some banks do issue a card against a fixed deposit depending on their rules and regulations; it is good way to start a credit trail.
Once you secure any kind of debt it is important to be a responsible borrower and pay all your dues on time. You can keep a check on your credit health by getting a free CIBIL Report.