Credit Information Bureau of India Limited (CIBIL) is one of the leading credit bureaus of India that provide credit report and credit score to the customers. But people often feel confused about the role of CIBIL status when going for a personal loan. A personal loan is an unsecured loan which means you don’t have to provide any collateral against the loan amount. Since lenders are not asking for any collateral, CIBIL score comes into the picture. With the help of this score, lenders find whether an individual will be suitable to find the loan amount. Simply put, it tells an individual’s creditworthiness.
If you don’t know CIBIL score, you should know that it is a 3-digit number that usually ranges from 300 to 900. Any score near 900 denotes the individual’s creditworthiness while any score near 300 is considered to be a poor score. Now suppose an individual doesn’t have any credit score and he or she still wants to opt for a personal loan. Is it possible? Well, yes it is possible. There are several methods with which an individual can get a personal loan without any CIBIL status. In this article, we will be telling you the same. Keep reading to know more.
How to Get a Personal Loan without CIBIL Status in an Easy Way?
There are a few methods by which you can get a personal loan without any need for CIBIL status. These methods are employment history & monthly income, loan against fixed deposits, and gold loan. With the help of these methods, when you are in need of urgent money, you can fulfill your needs. Let’s know about these methods a bit more!
- One of the first methods by which an individual can get a personal loan without a CIBIL status is via his or her employment history and monthly income. A long history of employment and higher income can make lenders trust in your creditworthiness and you can get a loan amount according to your monthly income since it tells about the repayment capacity of an individual.
- The other method to get a personal loan amount when you don’t have a CIBIL status is to go for a loan against fixed deposits. Do remember that it isn’t exactly a personal loan as you are submitting your FD as a collateral. With this option, you can opt for a loan amount ranging from 75% to 90% of the overall FD value.
- One such method is a gold loan where you don’t need any CIBIL status. Just submit your gold to the lender, and you will get the loan amount accordingly. One of the best things about the gold loan is as soon as you repay the gold loan within the fixed tenure, lenders will return your ornaments. Gold loans can also be a good option for those individuals who are looking to improve their credit scores.
How to Improve My CIBIL Score from 590 to 750?
As we mentioned in the last point, that gold loan helps individuals improve their credit score. Since many people who are struggling with a poor score have this question in mind — How to improve my CIBIL score? Well, to improve the CIBIL score, you can use a few methods. These methods are timely bill payments, responsible credit card utilization (30% to 40% of your overall credit card limit), habit of paying the full due amount, checking CIBIL Report regularly to identify any mistakes in it, and avoid from debt settlement.
Out of these methods, if you pay your credit card bills on time, your credit score will improve. So, let’s say your score is 590, which is very poor, you should start to pay your EMIs on time as it will make a major positive impact on your score.