Do not fret if you face rejection after applying for a personal loan simply because you do not have a credit history. There are a number of valid reasons for your lack of credit history, for example, your age or the fact that you have financial backing from your family – not having a credit score is because you haven’t really had any form of credit. Quite honestly, such a scenario is infinitely better than a borrowing from multiple lenders and having the burden of making repayments. A blank CIBIL record means that there is no data backing a lender in understanding and assessing your credibility, so some lenders reject applicants who do not have a credit history.
What is CIBIL?
CIBIL (Credit Information Bureau (India) Limited) manages the credit histories of consumers, companies and other institutions. To provide and generate accurate information, financial institutions submit their clients’ credit records to CIBIL on an agreed basis – usually monthly. CIBIL uses this data and creates a report under your name and there are points that are assigned based on various parameters. CIBIL allocates points in a range of 300-900 and a score of 750+ is considered good.
What are the effects of the absence of a CIBIL score?
For first time borrowers, the absence of a credit history might lead to a higher interest rate on their loan. An applicant has to provide sufficient records of a fairly consistent income which includes salary slips and bank statements. Even without a CIBIL score, there are instances of a personal loan being given out based on the monthly earning capacity and a good income to debt ratio that ensures that repayment defaults are unlikely.
Qbera personal loans – as a savior
Online lenders on the Fintech platform like Qbera help people with no credit history to get a personal loan. This is made possible as they use alternative risk assessment algorithms which consider social and economic leanings as well. It eliminates the need to exclusively rely on the credit report generated by CIBIL. Such online loans with manageable monthly EMIs are affordable and also help establish a positive credit record.
Eligibility parameters include:
- Net take home of Rs. 18,000/- and above
- Age group of 23-55 years
- No defaults in the last 24 months
- A decent CIBIL score of 600
An instant unsecured personal loan from Qbera can be applied online; since the process is completely digitized, there is no need to physically visit a branch. The documentation and verification processes are done online. After successful verification and barring of any discrepancies in your documents, the amount is credited to the applicant’s bank account within 24-48 hours. The long repayment tenure and manageable interest rate facilities ensure that the loan is repayable by the borrower from his salary.