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Tips to Get a Personal Loan When You don’t have Credit History


  • Want a personal loan but don't have a credit history? You can get the same against salary account, collateral, etc
  • Lending apps such as PaySense, EarlySalary are offering personal loans to individuals with no credit history

A personal loan is an unsecured loan that you can avail for education, marriage, medical emergency and several other personal needs. But, as it is an unsecured loan, lenders would like to be absolutely convinced of your ability to pay on time. If you have availed the credit in your lifetime, you must have a credit score. The score will give a fair idea to the lenders about your creditworthiness.

However, it’s possible that you and others may be new to the world of credit. Does that make you ineligible for the personal loan? Not quite! Yes, there are tips by which you can avail a personal loan even if you lack a credit history. Let’s read all those tips here.

Based on Savings/Salary Account Relationship

People having maintained a savings account with the bank for long can get a personal loan. The bank would, however, want the relationship value to be substantial so that it can lend you without any default worries. Salary account holders have a definite advantage here as banks get an idea of their earnings. So, it doesn’t remain a surprise when these account holders get pre-approval offers on their email or mobile phone from the concerned bank.

Based on Collateral

Personal loans are largely offered without asking the concerned individual to submit a collateral. In the case of someone with no credit history and slightly up and down sort of income, banks can ask for collateral to sanction the loan and enhance the safety of the capital lent by them. The capital safety is ensured as the loan is offered at about 80%-90% of the collateral value. In case the default happens, the bank can sell the collateral, whenever it feels appropriate, to recover the outstanding dues. You can choose from fixed deposit, life insurance policy, national savings certificate (NSC) as a collateral to procure the loan.

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Digital Lending Apps – Fast Becoming a Trend These Days

Banks and non-banking finance companies (NBFCs) put in place stringent credit norms. Many individuals fail to meet such norms and thus face rejection. But in an era where technological advancements are happening at a rapid pace, the instant loan disbursal through digital lending apps is increasingly becoming popular. These apps are Early Salary, Money Tap, PaySense, etc. All you need to do is to download the app, upload KYC documents and get the loan disbursed. The interest rate and other details are shown below.

Lending AppsInterest RateLoan Amount (in ₹)TenureMinimum net Monthly Income Required (In ₹)
PaySenseVaries as per the loan amount and tenure5,000 to 2 Lakh3-24 monthsSalaried - 12,000
Self-employed - 15,000
CASHe1.75% per month for 15-day loan
3.25% per month for 30-day loan
2.75% per month for 90-day loan
2.50% per month for 180-day loan
10,000 to 2 Lakh15, 30, 90 & 180 daysSalaried - 15,000
Shubh Loans26%-31% per annum25,000 to 5 LakhUp to 4 yearsSalaried - 12,000
No loan offer for self-employed as of now
MoneyTap13%-24.03% per annumUp to 5 Lakh2 Months to 3 yearsSalaried - 20,000
Self-employed professionals - 20,000
EarlySalary9 per day for 10,000 (2.5% per month), 30% for 3 month loan
Up to 2 Lakh
Up to 3 monthsSalaried - 20,000

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  • Personal Loan Interest Rates January 2020
    Bajaj Finserv10.99% - 16.00%
    Fullerton India14.00% - 33.00%
    HDFC Bank10.75% - 21.45%
    ICICI Bank10.99% - 18.40%
    IndusInd Bank10.99% - 16.00%
    Kotak Bank10.99% - 20.99%
    RBL13.00% - 18.00%
    Standard Chartered Bank11.50% - 18.00%
    Tata Capital10.99% - 18.00%