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Can I Get a Personal Loan with No Credit?

Can I Get a Personal Loan with No Credit?

Last Updated : Oct. 22, 2020, 8:26 p.m.

When we think of a personal loan, the first thing that comes into our mind is that we don’t need any security to get the required money from a lender. Since a personal loan is an unsecured loan, you don’t need to pledge any collateral to get the loan amount. So, what makes a lender provide a personal loan to individuals? Well, the answer to this question is Credit Score — A 3-digit number that defines an individual’s creditworthiness. It is one of the topmost considerations for lenders when they review a personal loan application. A credit score tells how responsible a borrower you are. Lenders trust individuals having a good credit score when it comes to a personal loan.

But what if an individual wants to apply for a Personal Loan with No Credit Score? This means it may be possible that an individual has no credit history and still wants a personal loan. Can the concerned individual get this loan in such a situation?

YES, he or she can get a personal loan with no credit score!

There are several banks and lending applications that can help such customers get a personal loan without credit score. Now you know that you can get a personal loan with no credit score, you would like to know how. In this article, we will tell you about all the methods with which you can get the same. So, if you are someone who wants a personal loan and don’t have a credit score, read this article further!

How Can You Get a Personal Loan with No Credit Score?

There are several ways by which a customer can get a personal loan without credit score. Individuals with a Salary account or Savings Account can get a personal loan without credit score. Similarly, individuals working in reputed firms or people having a sufficient monthly income to pay the EMI can also get a personal loan. Apart from this, there are several personal loan lending apps where you don’t need a credit score to get a loan amount.

We are telling you about all these methods in detail so that you can understand better. Have a look!

Having a Salary Account or Savings Account with a Bank

An individual having a Salary account or Savings Account in a bank can get a personal loan even if he or she does not have a credit history. According to the monthly transaction in your account and existing relationship with the bank, lenders may offer you a personal loan. So, if you have an excellent transaction history in a savings or salary account and an old relationship with a bank, the lender can trust you and offer you a personal loan without credit score. Usually, this type of loan is pre-approved, but you can also check your eligibility via Internet Banking, Phone banking, or contacting the customer care of your bank.

Having an Employment in a Reputed Firm

Sometimes, lenders also offer a personal loan to customers working in a reputed firm. Individuals who are working in Public Sector Companies or Reputed Multinational Companies (MNCs) usually have more chances to get a personal loan as compared to individuals who are working in non-listed firms. The reason behind this is lenders are more likely to trust individuals having employment in a reputed firm and the credit risk is quite low for them. So, if you are working in such a company and want a personal loan with no credit score, you have more chances to fulfill your needs at affordable rates.

Having Sufficient Monthly Income to Pay EMIs

When you take a personal loan, you need to repay it via EMI within a fixed tenure (maximum of 5 years). The most important factor that a lender checks before giving a personal loan is whether an individual will be able to repay the loan on time or not. So, how do lenders ensure this? Well, they check the monthly income of an individual. If an individual earns enough to pay the EMI comfortably, lenders can offer a personal loan with no credit score. This monthly income condition may change from one lender to another. The lender will decide the loan amount based on your monthly income. An individual with higher income and lower to zero debt obligations (loan or credit card EMIs) will most likely get a higher loan amount.

Lending Applications also Offer an Instant Personal Loan with No Credit Score

Apart from the possibilities we mentioned above, there is one more method to get a Personal Loan with no credit score. With the increasing reach of technology, it is now possible to get a personal loan from your Smartphone without a credit score . So, you don’t need to go to a bank and do that tiring documentation process. Instead, download the app, fill in a few basic details, upload the documents, and the loan amount will be credited to your account if being eligible. Several personal loan lending applications such as KreditBee, Dhani, MoneyTap, Early Salary, PaySense provide an instant personal loan with no credit score. Let’s check out the personal loan offers of these lending apps.

Lending Apps Loan Amount (In INR) Interest Rates Repayment Tenure Prepayment Charges
Dhani App 3,000-3,00,000 Starting from 13.99% per annum 3-36 Months No prepayment charges for loans under INR 20,000
KreditBee 1,000-2,00,000 1.02%-2.49% per month 2-15 Months -
EarlySalary 8,000- 5,00,000 24-30% per annum 90-730 Days NIL
MoneyTap 3,000-5,00,000 Starting from 13% per annum 2-36 Months -
PaySense 5,000-5,00,000 Starting from 16.80% per annum Upto 3 Years Prepayment allowed only after the successful payment of the first 3 EMIs. A charge of 4% of the outstanding loan balance at the time of prepayment will be levied

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