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Personal Loan Without CIBIL Score: What Are The Steps To Apply
30 May, 2025 | 11:01 IST

In the financial world, a strong CIBIL score is often seen as a ticket to securing any loan easily including a personal loan. But for many, this score can be a barrier — whether due to a lack of credit history, a financial setback or just not having built enough credit. The good news is that even without a high CIBIL score, obtaining a personal loan is possible.

As your CIBIL score improves and you become eligible for better credit opportunities, exploring personal loan options becomes easier.

If you're looking for financial assistance but don't have a CIBIL score to back you up, there are steps you can take to improve your chances of approval and alternatives to consider.

Table of Contents

The Importance Of CIBIL Score
Applying For Personal Loan Without CIBIL Score
Alternative Criteria For Approval
How To Improve Your CIBIL Score
Summary

The Importance Of CIBIL Score

Before exploring how to apply for a personal loan without a CIBIL score, it’s important to understand the significance of the CIBIL score. Issued by TransUnion CIBIL, the CIBIL score is a three-digit number that reflects your creditworthiness, essentially showing how well you’ve managed past debts.

The score ranges from 300 to 900, with a score of 750 or above considered ideal for securing loans at favourable interest rates. A high CIBIL score simplifies the loan approval process, making it quicker and more efficient. It also unlocks lower interest rates, as lenders perceive borrowers with strong credit histories as less risky.

But not everyone has a CIBIL score, particularly those who have never applied for a loan or credit card. This is where options for loans without a CIBIL score come into play.

Applying For Personal Loan Without CIBIL Score

While a strong CIBIL score is often the preferred criteria for loan approval, there are alternative ways to secure a personal loan even without it. Here are a few options:

Apply with a co-signer: Adding a co-signer with a strong credit history can increase your chances of approval. But do remember that if you fail to repay the loan, your co-signer will be responsible for the debt.
Request a smaller loan: Lenders are more likely to approve smaller loan amounts for those without a CIBIL score. Starting with a smaller loan and making timely repayments can help build your credit score over time.
Clarify credit inactivity: If you’ve never used a credit product, it's important to explain this to the lender. No credit history is treated differently from bad credit, and clarifying this can improve your chances of approval.
Consider secured personal loans: If you own assets like property or gold, you may qualify for a secured loan. These loans require collateral, reducing the lender's risk and increasing the likelihood of approval.

By considering these alternatives, you can increase your chances of securing a personal loan without a CIBIL score.

Even if with a low credit score, you can explore multiple loan options through the Moneycontrol app or website. You can compare loan offers from eight lenders for amounts up to Rs 50 lakhs. The application process is entirely online, offering fast-track approvals and near-instant disbursals in many cases. With interest rates starting at 10.5% annually, it could be a suitable option.

Alternative Criteria For Approval

When applying for a personal loan without a CIBIL score, lenders typically evaluate other criteria to assess your creditworthiness. Some of the key factors that will be considered include:

Income: Your monthly or annual income plays a big role in the loan approval process. Lenders want to ensure that you have the financial capacity to repay the loan. A stable income source, whether from a salaried job or self-employment, will work in your favour.
Employment history: Lenders often prefer applicants with a stable job history. A long-term relationship with your employer or consistent freelance work is seen as a sign of financial stability.
Bank statements: Lenders will closely examine your bank account statements to get a sense of your financial habits, such as regular savings, expenses and income flow.

How To Improve Your CIBIL Score

If you don’t have a CIBIL score yet — often the case for first-time borrowers — there are ways to start building one and improving it over time. The main thing you need to do is to show responsible credit behaviour.

Begin by taking a small loan. Make timely repayments to establish a consistent credit history. Avoid borrowing more than you can manage, and try not to max out your credit limit if you’re using a credit card.
Instead of applying for multiple loans at once, focus on building a clean, manageable credit trail. A balanced mix of secured (like gold or car loans) and unsecured credit (like personal loans) helps improve your profile in the eyes of lenders.
With consistent repayment, limited credit utilisation and financial discipline, your credit score will gradually improve. Once it crosses 750, you’ll find it much easier to access loans at better interest rates and terms.

While a CIBIL score is an important factor in securing a personal loan, it is not an insurmountable barrier. Even if your score is less than ideal — or completely absent — some lenders offer personal loans that don’t rely solely on your CIBIL history. Through the Moneycontrol app or website, you can explore personal loan options of up to Rs 50 lakhs from eight top lenders. The entire process is digital, ensuring quick approvals and disbursals. With interest rates starting at 10.5% per annum, it’s a flexible option for those needing to manage urgent financial obligations.

Summary

No CIBIL score? No problem. You can still get a personal loan by exploring alternative options and building your credit step by step.

Disclaimer

This piece/article was written by an external partner and does not reflect the work of Moneycontrol's editorial team. It may include references to products and services offered by Moneycontrol.

About the Author

Fintech

Stay updated on the latest personal finance trends, with a focus on products like credit cards, credit score, personal loans, fixed deposits, and more

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