First time Personal Loans no Credit History

What does CIBIL -1, CIBIL minus 1 mean?

A CIBIL score -1 (NH) on a CIBIL credit report means that the creditor does not have a history or a credit track record. In the following three situations, you can have CIBIL Score NH (-1)

If this is not your credit history or track record

If there is no credit for 2 years or the credit repayment period is over 24 months.

You have no direct reference to your credit name (for example you can use add on credit cards).

While this is not a negative situation, banks and other borrowers are not deterred from lending to clients for lack of adequate credit checks / track records. Some banks may deny the application and some banks or NBFCs may still agree to lend to the prospective borrower on the basis of credit assessments based on certain factors like the salary / income proof, education history and the employer.

CIBIL 0, CIBIL Zero Score

Credit History Not Available (NA) is a score of 0 on a credit report from CIBIL. This results in a record of the credit track available to the borrower for less than 6 months. In this situation, banks must determine Credit Transunion 2.0.

Many banks have moved to the latest iterations of credit score, thus helping lenders with a loan history of less than 6 months. However, older credit score versions may still receive a report which provides new borrowers with a score of 0 or -1.

CIBIL 2.0 Transunion

CIBIL has released a new edition of its CIBIL Transunion 2.0 credit report, which takes a different method in evaluating the borrower ‘s history of fewer than 6 months of credit history. CIBIL 2.0 includes the new lenders score or risk index for the 1-5% range, with 1-2 as the highest default risk, 3 as the lowest default risk and 4-5 as the lowest default risk.

The score depends on different factors, such as form of loan (securing or not), past behaviors to search for credit (such as the amount of credit inquiries), 3 months overstretched for every month during the loan period, demographics (such as age and location), etc.

If the CIBIL score is good, check your eligibility for loans online and apply for loans.

Experienced score for new creditors

Two other India, Experian and Equifax leading credit score companies have also been following by providing credit scores for new lenders. Experience measures such customers’ scores at the rate of one to six, where the highest default risk is one, and six the lowest default risk.

Equifax score for credit-free borrowers

Equifax scored between 300 and 900.

The tool is explicitly developed with local data and expenditure pattern but in compliance with international requirements for the Indian market. The demographic factors are included in the validation of repayment capacities, especially for new entrants in the credit market.

Why is it hard for borrowers to get a loan?

In a 2014 report, RBI made recommendations that new or first-time borrowers should not be refused loans. However, several banks and NBFCs also can not provide new lenders with secure loans. If lenders face a particular challenge, as with a small amount or no credit history, determining a credit score can be challenging for credit agencies and the lack of a credit score makes it hard for banks to lend. This results in a chicken and egg story because receiving a loan without credit score is difficult and it may not be possible to build a credit score without a loan.

How can I get credit-free personal loans?

Life can be an exciting journey. You should never afford to throw a curve ball. The only aspect in your hands is keeping you prepared enough to hit a home run instead of losing the game. This is especially true in the case of property.

Needs, emergencies, visions and wishes usually require exorbitant funds. These can flourish at any time and you can never get enough money. You are scrambling for fast personal loans and in vain. You tend to face rejection because you don’t have a decent credit score.

What’s a loan score?

A credit score derived from an analysis of the financial record of an person and reflects the creditworthiness of a person. Your credit score serves as a metric to evaluate the risk to lenders, credit card companies and banks.

While the word has existed for a long time, many people who apply for immediate personal loans will hear it for the first time as it leads to rejection. Then comes the question, how can personal loans be obtained without a credit?

The truth is that an individual who first files for rapid personal loans may be creditworthy. But the credit score is relatively low because there is no previous record of their borrowing history. This in effect makes it relatively difficult but not impossible to receive the instant personal loan. Here is a guide to keeping the personal loan unchecked.

A number of other considerations come into play when you have no credit background. What you can do here: