April 28, 2025 · 21 mins read
Santhosh Kumar
When you apply for a 5-lakh personal loan, lenders first check your CIBIL Score to determine your creditworthiness. Those who do not have any credit history, or in simpler terms, have never borrowed from any lending institute and do not have a credit card, may not have a CIBIL Score. This kind of borrower can think about how to get a 5 lakh personal loan without a CIBIL score. You can still get a personal loan by submitting income statements, employment proof and several such documents. Alternatively, borrowers can also opt for a joint loan, find a guarantor, or consider putting up collateral like a car or a house.
These measures will help you avail of a personal loan despite a poor CIBIL score. However, make sure that you have sufficient funds for repayment. If not, your credit score will plummet further. For this, you can use the Personal Loan EMI Calculator to know your EMI well in advance and plan your repayment accordingly. As a last resort, you can check to see if you can pledge assets such as jewelry or property to get a 5-lakh personal loan.
Credit Information Bureau of India Limited (CIBIL) issues an applicant with a credit score (CIBIL score in this case) that denotes the creditworthiness and ability to repay the loan on time. CIBIL is a three-digit number calculated based on the applicant’s financial history. The CIBIL score ranges between 300 to 900 and people having a higher score have better chances of getting loans approved.
Your CIBIL score is determined by many factors such as your payment history, types of credit and number of loan accounts, credit history, opening and outstanding loan amount, etc. Different banks and financial institutions have different benchmarks for issuing loans to applicants. As per CIBIL’s analysis, most of the loans approved are for those individuals who have a score of 750 or more.
A CIBIL score is important because it helps in the following ways to both the lender and the borrower:
1: CIBIL score helps the borrower to know his creditworthiness. A person who manages his finances well will always have a higher CIBIL score.
2: A lower CIBIL score signifies that the applicant has low creditworthiness, and banks refrain from giving loans to such applicants.
3: If the person has a very good CIBIL score, the institution may grant him a loan at a lower interest rate and with minimum paperwork.
4: If the CIBIL score of the applicant is very low, banks either do not approve the loan application or grant the loan at higher rates of interest.
5: However, only CIBIL score is not the only criterion that decides whether banks would grant the loan to the applicant or not.
6: Various other factors help these organizations decide the approval of the loan application of the applicant. However, the CIBIL score of the applicant plays a major role when banks offer the interest rate.
7: An applicant having a higher CIBIL score may get a loan at a lower rate of interest whereas an applicant having a lower CIBIL score may get a loan at a higher rate of interest.
A good CIBIL score ensures that you get several advantages over those having no CIBIL score or a lower score. You are entitled to the following advantages if you have a good CIBIL score:
Easy Credit from Lenders: A good CIBIL score helps you get loans and credit cards from lenders quite easily as your good credit score raises hopes of lenders that you will easily pay back your loans on time
Quick Approval of Loans: A good CIBIL score states that you are a good prospect to lend money. Thus, banks try to give you the loan as early as possible. People having lower credit scores have to furnish several documents and find guarantors, making the loan disbursal process a bit time-consuming.
Low-Interest Rate Loans: People with high CIBIL scores get loans at a relatively lower rate of interest. Those having a lower credit score are granted loans at higher rates of interest.
More Negotiation Authority: If you know your CIBIL score is very high, you have the negotiation authority to bring down your interest rate
Higher Approval Limits: If your CIBIL score is high, you not only get loans at a lower rate of interest but also have chances of getting the upper limit of loans
Easy Approval for Leased/Rented Properties: People having a good credit score get easy approval for loans, even for rented or leased properties like homes, commercial complexes, or apartments
Exclusive Credit Card Offers: People with good CIBIL scores get exclusive credit card offers from many banks. These cards may have higher limits, more privileges, and special offers and cashback.
The importance of a high CIBIL score cannot be underestimated if you need any form of credit, such as personal loans. The higher the CIBIL score, the better the chances of availing an affordable loan. However, what if you have a low CIBIL score or no CIBIL score at all? Can you still get a 5 lakh loan without a CIBIL score or a personal loan without a CIBIL score? Then, Continue reading the article to know.
If you are new to credit, chances are that you may not have a CIBIL score. The good news is that, despite this, you can still avail of a personal loan.
However, before you proceed, you may wonder how to get a 5 lakh loan without CIBIL score to apply for an instant loan without CIBIL scores, the following pointers must be kept in mind -
Would you lend large sums of money to someone repeatedly despite knowing that the person’s source of income is not stable and you won’t be repaid? For many of you, the answer will be negative. The same situation can be applied to banks and lenders.
To get an instant loan without a CIBIL score, you must show legitimate proof to the banks and lenders that your income is sufficient enough to repay the loan on time.
When you opt for a higher loan amount, you must expect a higher rate of interest as the risk for the lender increases.
Now, if you have a low or no CIBIL score and you want to borrow a large sum of money, then the lender might not be too keen to sanction your amount as they are unaware of your creditworthiness and will doubt your ability to repay the amount on time. So, if you you are without CIBIL score, you may be able to avail of a loan.
If you wish to apply for a personal loan without CIBIL scores or a low CIBIL score, then you can increase your chances of getting your loan approved by applying with a co-applicant. The lender will check the co-applicant’s income and his/her ability to repay the loan amount. If the co-applicant meets the requirements, your loan will be approved.
If you don’t have a CIBIL score and you want to get a loan, then you can ask one of your family members to be a guarantor. If your guarantor has a good CIBIL score, then your loan approval process will not be difficult.
NA or NH on your credit report means no credit activity in the last 36 months. You can speak to your lender about your credit inactivity, explain the reasons for it, and get your loan approved. However, in such a case, you may be charged a high rate of interest.
If you wish to get a personal loan or instant loan without a CIBIL score, then you can opt for secured loans, i.e., loans that require collateral such as property, jewelry, FD, etc.
However, if you are unable to repay your loan, then the lender can seize your submitted asset and sell it to recover the loan amount.
The following is the list of loan applications that offer loans without a CIBIL score 2025:
1: EarlySalary
2: FlexSalary
3: Nira
4: SmartCoin
5: MoneyTap
6: PaySense
7: market
To apply for a loan using loan applications without a 2024 CIBIL score, complete these steps:
Step 1: Install any smartphone app that allows for personal loans without a CIBIL score.
Step 2: For registration, enter your mobile number and any important information.
Step 3: Enter the PAN and Aadhar information to finish the online KYC process.
Step 4: Enter the one-time password (OTP) that was sent to your mobile number.
Step 5: Connect your bank account to the app on your phone.
Step 6: The organization will make loan offers based on your banking history.
Step 7: If you accept the terms and conditions, click "Apply."
You must meet the following eligibility requirements to qualify for a loan through these apps.
Age: The applicant must be at least 21 years old.
Mobile number: Your Aadhaar and PAN cards should be linked to your registered mobile number.
Banking access: Your account should be active for internet banking as well as mobile banking.
Income source: You should have a steady source of income, and the bank from which you are applying for the loan should be linked with your salary account.
Though the requirements of documentation will vary from one lender to another, the following are common ones:
Identity proof: Photographs, PAN card, Aadhaar card, and mobile number.
Income proof: Bank statements for the last three months are taken as evidence of income.
The problem that you face for getting a 5-lakh loan without a CIBIL Score
There are some common hardships you will have to face if you are without a CIBIL score
Here are a few of them:
A No CIBIL score directly questions your potential to repay the borrowed amount on time. Therefore, a bank or NBFC assumes you are under their high-risk clientele. Hence, even if they sanction the loan, they set a high interest rate to compensate for the risk taken.
You will get limited credit options when having a below-average CIBIL score of 700 or without a CIBIL score. Even if a handful of lenders agree to offer you emergency funding, the conditions put forward seem unfavorable. The tenure is cut short to lower the associated risks.
The lenders present multiple conditions even while extending the basic credit instruments if you are without a CIBIL score. In certain cases, you may be asked to pledge something of value to get the desired loan amount. Denying the terms can lead to a potential loan rejection.
As already covered, getting a reasonable NBFC Personal Loan for a No CIBIL score is tough, so you should be prepared to choose among limited loan options. Also, it is recommended not to apply for too many credit facilities simultaneously, as that would result in a further dip in your CIBIL score.
Bad credit personal loans are usually available online. So, depending on the lender, the money could be in your bank account in as little as 15 minutes.
As long as the loan isn't for gambling or anything illegal, you can spend it on anything you like. Common reasons for taking out a loan include home improvements, debt consolidation, or high-value purchases like a new car.
The best way to repair your credit score is to slowly build up a good credit history. Bad credit loans can help you to do this by repaying your loan on time, every time to show that you are a responsible borrower - this should improve your credit score over time.
Your options are more limited when you have a bad credit history, but there are lenders and brokers who specialize in bad credit loans.
Difficult to get a new loan or loan rejection: An average or poor credit score, typically below 700, is a result of a weak track record with credit, indicates a higher risk for the lender in offering a new loan/credit card and thus, may often result in loan rejection. In case a lender agrees to provide a loan despite a poor credit score, it is usually offered at a higher interest rate and/or other unfavorable terms such as shorter repayment tenure with higher EMIs, lower loan amount than what you need, etc.
Limited credit card options: As a poor credit score increases the risk for the lender, it may often also result in the rejection of credit card application(s). In case a credit card is offered to a person with poor credit score, it usually comes with a lower credit limit.
Higher interest rates: Since the risk for the lender is higher in lending money to an applicant with a poor credit score, they may also be charged a higher rate of interest on their new loan.
Fewer options for premium credit cards: Most credit card providers do not approve applications of applicants having a no credit score. When applying with the bank, they are offered cards with fewer rewards and offers. Such applicants also have limited credit card offers and those being offered have a low credit limit.
Credit Myths and Clarity about Personal loan/loan without CIBIL score or low CIBIL score
A lot of people think that their CIBIL score greatly depends on their income level. However, this is far from the truth. The credit score does not have anything to do with your income level. So, if you earn a high income but have defaulted on your payments or have bad credit behavior, your score will be low as compared to someone who has a low income but has never missed a single loan EMI (equated monthly installment) payment.
This is another common myth about the CIBIL score. So, if you think having a high CIBIL score for loan approval is mandatory, you have got it all wrong. Although credit score is one of the critical factors that financial organizations consider when determining eligibility, it is not the only factor. Lenders consider the CIBIL score to assess your creditworthiness. But, at the same time, they also consider other factors like your current financial standing, income level, employment stability, age, etc., before deciding to extend the loan.
So, even if your CIBIL score is low, you may still get the loan approved, albeit at a higher interest rate.
As an individual, you may do a CIBIL score check for different purposes, like to ensure that you meet the lender’s minimum credit score requirement before applying for a loan or just as a usual financial practice. However, many people believe that regular checking of their credit score will lower their score. Fortunately, this is only a myth.
When you check your CIBIL score, the credit bureau counts it as a soft inquiry, and it has no impact on your score. So you can check your credit score multiple times. However, when a financial organization initiates a check on your CIBIL score, it is counted as a hard inquiry, and multiple inquiries within a short period would reflect your credit-hungry behavior, and your score would take a dip.
The financial organizations make their decision to extend the loan to potential borrowers based on a variety of factors, like income level, credit history, type of asset mortgaged, and age, and only based on their high credit score.
So, a high credit score is not a guaranteed ticket to securing the loan, nor does it imply that you can get the loan at a lower interest rate. If the lender is not satisfied with any of the parameters mentioned above, your loan application may get rejected, or they may offer the loan at a higher interest rate.
When you apply for any kind of credit, it has zero impact on your CIBIL score, provided you avoid applying for multiple loans within a short period or approach different lenders at the same time. Every time you submit a loan application to the lender, they will verify your credit history and do a hard check with the credit bureaus. Multiple inquiries may reflect your financial desperation, and it will result in a lowering of your CIBIL score.
So, it is advisable that you first do a thorough check of the eligibility requirements of different lenders and apply for the loan with only a reputed NBFC (non-banking financial company) like India Shelter that has simple eligibility criteria. This will improve your chances of getting the loan sanctioned faster, and you can get quick access to funds.
Below mentioned are a few measures that can help you gradually build your credit score.
A secured credit card can be availed by opening a fixed deposit as collateral that further becomes your credit limit (sometimes a part of FD is provided as your credit limit). You can build your credit history gradually by using a secured credit card responsibly.
The card-issuing entity easily approves secured credit card applications, as it is backed by fixed deposits. This is the most convenient method for first-time borrowers to start building their credit score.
With the help of a consumer durable loan, you can purchase household and office products, such as electronic products, home or official appliances, furniture, and much more.
It becomes easier for 'new-to-credit' customers to avail consumer durable loans, as compared to other lending products, such as personal loans, business loans, home loans, auto loans, etc. It helps in building the credit history of customers who are new to the borrowing market as the repayments are reported to credit bureaus by the card providers.
BNPL options are rapidly gaining importance, as it has turned out to be beneficial in building credit health by using them for low-price products. BNPL is a user-friendly method related to various retail transactions in which customers can make immediate purchases and pay later. This option allows customers to buy goods and services without paying any one-time or upfront fees. It allows you to repay in equated monthly instalments over a specific period which helps in building credit score.
If planning for a credit card, customers can opt for a bank where they have their existing financial relationship, such as a salaried account, current account, business account, etc., as they already maintain a healthy relationship with the bank.
Also, the lending banks already have access to their financial history, so credit card application approval becomes easy. Many banks provide new credit cards to first-time borrowers based on the salary account they manage with the bank.
Lender’s report consumer credit information to credit bureaus regularly. As per the data provided by the lenders, credit bureaus generate credit reports of their customers.
Therefore, paying off your loan EMIs and credit card bills on time can reflect you as a credit-responsible borrower in the eyes of lenders and thus can further help in improving your credit score.
Credit Utilisation Ratio (CUR) is the ratio of used credit limit to the total credit limit available to a cardholder. Regularly monitoring your credit utilization ratio is vital, as it depicts how well you have managed the assigned credit limit.
A high CUR depicts you as over-dependent on credit, whereas a low CUR shows you are less dependent on credit. Utilize your credit limit responsibly to make sure that there is no negative impact on your credit score. Showing yourself as highly dependent on credit right from the start of your credit history can be taken negatively by lenders. Keeping your credit utilization ratio to the minimum and repaying all the dues in time can also help in building a healthy credit score.
Do check your credit report from time to time. If you find any credit account assigned to your report that you haven't availed, you should report it immediately to the lender and the credit bureau.
Any wrong information in your report can lower your credit score significantly. Going through your credit report regularly can help you understand your credit better.
You should apply for a loan only when you need it. While applying for a credit card, you should be well aware of the additional requirements, such as salary or any other criteria that a provider demands. Do not apply for a card that you may not be eligible for, as any credit rejection may lower your credit score from the very beginning.
Getting approval on your loan application without a CIBIL score seems to be a tough task but still, it is possible. Several factors affect your credit score, and therefore, you need to make some smart decisions to improve your credit score and get approval for a loan. It comprises steps like paying off previous debts, correcting errors in the credit report, applying for a loan with a co-signer, etc. By following these steps and managing your finances wisely, you can get a 5 lakh loan without a CIBIL score.
Yes, you can apply for a personal loan of up to 5 lakhs if you are new to credit. Many lenders will assess alternate criteria for the new credit people. They will check your income, employment status and financial stability. There are Fintech lenders, many loan applications, NBFC are available to give you loans, they might come with higher interest rates and some strict regulations.
The CIBIL Score plays a critical role in the loan application process. After an applicant fills out the application form and hands it over to the lender, the lender first checks the CIBIL Score and Report of the applicant. If the CIBIL Score is low, the lender may not even consider the application further and reject it at that point. If the CIBIL Score is high, the lender will look into the application and consider other details to determine if the applicant is credit-worthy. The CIBIL Score works as a first impression for the lender; the higher the score, the better your chances of the loan being reviewed and approved. The decision to lend is solely dependent on the lender and CIBIL does not in any manner decide if the loan/credit card should be sanctioned or not.
CIBIL Score is a 3-digit numeric summary of your credit history, derived by using details found in the 'Accounts' and 'Enquiries' sections on your CIBIL Report, and ranges from 300 to 900. The closer your score is to 900, the higher the chances of your loan application getting approved. It is based on your credit history.
CIBIL cannot delete or change records reflecting on your CIR on its own; we simply collect records of individuals provided to us by our members (Banks and financial institutions). No 'good' and 'bad' credit or defaulters lists either exist.
If you want to qualify for a loan without a CIBIL score, you must:
1: Have a stable source of income.
2: Be between 21 and 60 years old.
3: Provide valid proof of identity, address, and income.
Download the app from PlayStore
