You must have known this fact that a personal loan is an unsecured loan. By this, we mean an individual doesn’t need to submit any kind of collateral against the loan amount. That’s why the role of credit score becomes quite crucial when availing of the desired loan amount from a lender. The first thing that any lender checks before providing the personal loan is the 3-digit Credit Score that defines an individual’s creditworthiness. So does it mean if an individual with no credit score cannot opt for a personal loan?
Well, the answer to this question is NO. Individuals with no credit history can also get a personal loan from several lenders. Apart from lenders, thanks to the digitalization, several lending apps also provide the loan without any credit score. So, now you must be curious about the methods by which an individual without any credit score can get a personal loan in a hassle-free manner! Well, in this article, we will be telling you the same so that you can be familiar with them. So, without any further delay, let’s get to it.
Individuals who have a Salary Account and Savings Account in a Bank
The first thing that you need to understand is that lenders check the credit score of an individual to establish the trust factor. But if the same can be done by seeing the salary account or monthly transaction in your savings account, then there’s no need for a credit score. So, if an individual has an excellent transaction in his or her savings account or a long existing history with the bank, lenders may offer such individuals a personal loan. However, this kind of loan is mostly pre-approved, and you can check your eligibility from the bank.
Individuals who have Sufficient Monthly Income for Loan Repayment
Any lender would want only one thing: the borrower should repay the loan on time. In the case of a personal loan, an individual should be earning enough so that he or she can pay the monthly installments without any stress on the finances. When an individual opts for a 5-year personal loan, he or she needs to pay a total of 60 monthly installments. To ensure this, lenders check if the applicant has a sufficient monthly income. People who have a higher income will certainly have higher chances to be eligible as compared to people with lower income. Other than this, fewer existing obligations will also play a crucial role in determining your eligibility.
Individuals working in a Reputed Organization
One of the other methods to get a personal loan without any credit score is the employment in a reputed MNC or a Public Sector Company. You would ask how? Well, lenders can trust individuals who work in a big Multi-national Company or a government organization. While trusting them, the credit risk is quite low for lenders. On the other hand, individuals who are working in a non-listed company, you may not get this loan facility from lenders.
Instant Personal Loan Lending Applications
There are high chances that you are reading this on a smartphone. If not, you must be aware of them considering their wide popularity. But do you know that you can get a personal loan with the help of your smartphones? Well, yes, apart from methods we mentioned above, you can also get a loan amount with the help of a few lending applications. The best thing about these mobile applications is that you can get a loan without any credit score. Some of them are KreditBee, Dhani App, MoneyTap, Early Salary, and Pay Sense. You just need to download the app, fill in a few personal details, upload the required documents, and the loan amount will be credited into your account according to your eligibility.