No credit score? Here’s how you can get a ₹30,000 personal loan | Mint

We often have unexpected hurdles to cross in our lives. ₹30,000 at the right time may be a lifeline, helping you meet a sudden medical bill or an unexpected increase in your regular bills or grab an opportunity before it slips into someone else’s hands. So, what do you do when your credit score is minimal, or you hardly have any record. Here we will help walk you through the process and help you secure the funds that you need.

Personal loans

Some uses of personal loans include vacationing, debt consolidations, making improvements to houses, paying medical bills and other things needed. Lenders evaluate your worthiness based on your income to repay, credibility, and paying ability since one does not risk any collateral, which is collateral-free.

Instant personal loan

Instant personal loans are given within minutes or hours. The best part of this loan is that it takes less paperwork. Its main purpose is to meet short-term financial urgencies. But, you will have a higher interest rate compared to others.

How to get a personal loan without a credit score?

Now let’s look at four things that you can do if you have no good credit history or score:

1. Guarantor: If you have a credit-worthy person who is willing to attest to your credit, then your chances of getting approved can be increased significantly. A guarantee is like a safety net that promises the lender that you will repay them.

2. Income: Instead of a credit score, lenders could use evidence of consistent income. You can use your income tax returns, bank records, or pay stubs to prove you have the capacity to repay the loan.

3. Collateral: Offer an asset as collateral, which may be something like real estate or gold. Because the lender can recover his money by selling the item in case he or she needs it, this reduces their risk.

4. NH status: Generate a credit report which shows a “No Credit History” tag (NH) which means that you have never applied for a loan or signed up for a credit card.

Features of an instant personal loan

• Fast approval: It can approve a loan in less than five minutes.
• Fast disbursal: Credit money to your bank account in less than a day.
• Change your repayment dates: Choose any payback date for between 96 months depending on your budget.
• Withdraw upon request: Pay only an interest for the amount utilised while borrowing money.

How to apply for an instant personal loan of ₹30,000?

Step 1: Go to the website or mobile app of your bank or any other financial institution.

Step 2: Choose “instant personal loan.”

Step 3: Input your phone number and verify it using an OTP.

Step 4: Fill out information about your job, income, and KYC.

Step 5: Upload necessary documents.

Step 6: The lender will verify your application.

Step 7: The loan amount will be credited to your bank account once approved.

In conclusion, although this may sound hard, getting a loan of ₹30,000 without a credit score is very much feasible. Be sure to evaluate interest rates, terms of repayment, and any additional costs associated with the loan before finalizing. You must have a repayment plan to repay the loan since personal loans always bear a higher rate of interest. Always remember that personal loans have higher interest rates.

(Note: Raising a loan comes with its own risks. So, due caution is advised)