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5 Tips to Get a Personal Loan When You don't have Credit History

By Finserv MARKETS - Jun 3,2019
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Personal Loan with No Credit History

Getting a personal loan without a credit history is not easy but it’s not impossible either. People who are young and/or always had their family’s support for financial matters never really felt the need to maintain a credit history.

If you do not have a credit history and are worried that your loan application will be rejected don’t be, because there are alternate routes. If you are a first-time applicant, lenders understand the absence of a CIBIL score, but they will be meticulous. You need to convince them why it is a good idea for them to give you a loan without having any past financial history. For such reasons, we have made a list of five tips to get a personal loan when you do not have a credit history.

Here is the list to get personal loan when you do not have a Credit history:

Get a Credit Card

The easiest way to create a credit history is by obtaining a credit card. If you are employed and have a constant income source, then it is easy to get one. However, keep in mind that your credit card bill should not exceed 30% of the credit provided to you. If you use the credit card responsibly for a few months and pay bill on time, you will be able to create a positive credit history for yourself.

Become a co-applicant

If someone has a good CIBIL score, then you can co-apply for a loan with them. Co-application implies that both parties are equally responsible for the repayment of the bill. If either one defaults, the other one has to pay the bill because it will affect the CIBIL score of both parties. So, this decision must be taken very carefully.

Offer Collateral

Most personal loans are unsecured, meaning they do not require any collaterals. But if someone without a credit history asks for a loan, they may have to pledge a security against the loan. A blank CIBIL report doesn’t give the lenders enough confidence to sanction a loan. Therefore, pledging a security reduces the risk on the lender’s side and enables you to get a loan.

Three C’s

While reviewing a loan application, banks look at three C’s – Credit, Collateral and Character. If the first C is missing, then they emphasize on the other two. If you have a stable job and enough money to pay EMIs then you are in a good position to get a loan. Owning a property also helps. Essentially, any factor that will convince the lender of a strong financial background helps you get a loan.

Apply for an Online Loan

An online loan is the easiest way to acquire a loan with no credit history. This because the online lenders are lenient compared to traditional lenders. As long as you have a steady income flow and the capacity to repay the loan, you are a good candidate. Moreover, getting a loan online has more flexibility and is more convenient.

Looking for a personal loan? Get in touch with us at Finserv MARKETS and benefit from the features like quick disbursement, low EMI, minimal documentations and a list of other features. What’s more? Your online personal loan application can be approved under just 3 minutes and the loan amount will be credited to your bank account within 24 hours! Apply for Bajaj Finserv Personal Loan with us, today!

Read more about How to Increase Chances of Getting Personal Loan

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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522