Checking the CIBIL score is the first thing any lender tends to do when an applicant goes to apply for a loan. Having a good CIBIL score is in favor of the applicant because it tells about their eligibility to pay the loan back. But one which many people wrongly think is that a CIBIL score is necessary to get an instant loan. For any person having a bad or low CIBIL score, getting an instant loan will be based on the current income of the individual. But there are ways to get an instant loan without CIBIL and it is possible to get a credit in absence of a good CIBIL score.

What is a CIBIL Score?

The CIBIL score stands for the record maintained by the Credit Information Bureau (India) Limited. It is maintained in the entire country as all the banks share their data with CIBIL. It is a three-digit score that will tell whether the borrower is credible or not with the money they have been lent. Ideally, one can get alone based on the CIBIL score loan. 

To get an instant loan without CIBIL, one would have to understand the terms and conditions that will come with it. Certain CIBIL score myths will help you understand the entire process better. 

How to Get an Instant Loan Without a CIBIL Score?

Any applicant applying for a loan for the first time will most likely not have a CIBIL score. In such a case the lender will look at the income proof. Apart from knowing how much one earns the lender will also require certain other guarantees to ensure that the sum is paid. Here is everything you can expect from an instant loan without CIBIL:

• Based on Income

When a lender looks at your income proof, their expectation is for the income to fall above a certain limit. 

• Higher Interest Rates

If the lender is not satisfied with your income, they would suggest a higher interest rate for a particular amount. 

• Joint loan

If you fail to provide valid income proof you will be suggested to take a joint loan with somebody who has a good score. 

• A Guarantor

If you want an instant loan, you can find a guarantor and ask your relative or close friend with a good CIBIL score to be the guarantor for the loan. 

CIBIL Score Myths Busted

Just like thinking that taking an instant loan without CIBIL is impossible, there are many other myths related to CIBIL score. Here is a list of some of them:

• If you don’t take any credit you will have a good CIBIL score 

No credit history simply means no CIBIL score at all. No CIBIL score will translate to difficulties in case you apply for an instant loan in the future. 

• The more you check your CIBIL score, the more it decreases

Checking your CIBIL score has nothing to do with its value. You have to maintain good credit practice to have a good CIBIL score. Experts recommend checking your CIBIL score at least once a year. 

• Closing a credit card will not impact your CIBIL score

If you have zero outstanding balance on your credit card, consider keeping it that way rather than closing it for good. This is because a particular credit card will show your credit history and will work to your advantage. 

While it cannot be denied that having a good CIBIL score will obviously work to your advantage, not having one will not hold you back either. You can secure an instant loan without CIBIL as long as you are willing to provide income proof or take the help of somebody who does have a good CIBIL score. Knowing how the CIBIL score works will also help you in maintaining a good financial history.