A personal loan, credit card debt, and student loans are types of unsecured loans which does not require any collateral to avail them. Unlike house loans, car loans, and gold loans, which are backed by physical assets in the form of collateral, which can be used as security in case the borrower defaults on loan payments.
This can be both positive and negative in some instances, depending on the lender and the borrower. For example, while unsecured loans may allow a much wider range of individuals to borrow money and use it in times of need, they may have an upper limit on the loan and attract a much higher interest rate and thus EMI if the borrower does not have much positive lending history.
Keep reading to learn all you need to know about insta personal loans, including whether it is possible to get a personal loan with a CIBIL score, when someone can borrow money, and to what extent without a CIBIL score.
What is a CIBIL score?
CIBIL or Credit Information Bureau (India) Limited score is a term sometimes used interchangeably with Credit Score in India to mean an individual’s credit rating. CIBIL India is a part of TransUnion, an American multinational group. It is the most popular of the four credit information companies licensed by the Reserve Bank of India to function as credit information companies: Experian, Equifax and Highmark.
CIBIL maintains credit files of over 600 million individuals and 32 million businesses and offers a 3-digit numeric summary of your credit history, rating and report, ranging from 300 to 900. The closer your score is to 900, the better your credit rating is and thus the more creditworthy you are.
How to get a CIBIL Score?
You can easily get your CIBIL Score with a free report on their official website. The report includes your latest CIBIL Score, a summary of your credit payment history, personal information such as your name, date of birth, and gender linked to your loan and credit cards, enquiries made by the lender for your loan and credit card applications for the last 36 months, and details of all your active and inactive loan and credit card accounts.
When can someone borrow money without a CIBIL score?
As you may now know that the RBI requires all lending institutions, whether banking or NBFCs, to check the credit score of the borrower before lending money to determine the creditworthiness, debt obligation, rate of interest, loan amount, and promotion offers, but in recent years, as more and more new borrowers enter the market, lenders have started to offer personal loans with no hard credit checks enabling new borrowers to avail loans without any prior credit history and score.
However, note that these no credit check loans attract a high interest rate, so it is better to borrow a smaller amount and build a reliable credit history if you have time. Otherwise, these types of loans offer an excellent option for emergency funds.
How much loan is someone eligible for without a CIBIL score?
While there is no set amount for no credit check loans, another popular type of loan granted without a hard credit score check is a pre-approved personal loan (PAPL) given by an organisation with a pre-existing relationship with the insurer, which thus enables the lender to offer a loan without checking CIBIL score, typically, the upper limit for a PAPL is from ₹5 to ₹25 Lakhs. Still, it can be higher or lower depending on the specific lending institution.
Which is the best personal loan app up to 5 Lakh?
If you are looking for a personal loan app for self-employed people or those without a credit history that offers no credit check, check out Bajaj Finserv, one of the best personal loan apps up to 5 lakh. Bajaj Finserv is a well-known name in the financial services industry, offering gold, personal, professional, and commercial loans while also offering a platform for mutual funds, recurring and fixed deposits, UPI payments, FASTag, and a lot more, all from their Android and iOS apps.
So, check out the Bajaj Finserv app today and look for a pre-approved or no credit check loan based on your needs.
Conclusion
When in need, a PAPL or a no credit check loan can offer the required funds, whether during an emergency or urgent extingency. So check out leading lenders like Bajaj Finserv and other reliable lenders to fulfil your insta personal loan needs without requiring a CIBIL score. While the interest rate for such a personal loan app up to 5 lakh might be quite high, it might be the only option for most lenders.