Credit Information Bureau (India) Limited (CIBIL) is a credit information agency that maintains records of all credit-related tasks of companies and individuals, including credit cards and loans. The higher the CIBIL score, the higher the possibility of lenders approving the loan or application for a credit card.
A CIBIL score contains a 3-digit number that ranges from 300 to 900, which indicates a report of financial credit history. A score near or around 900 is considered to be excellent, whereas a score above 750 is good. On the other hand, a score near or around 300 is awful, real estate and is regarded as unqualified. Hence, it becomes mandatory to check the CIBIL score. There are 4 major credit rating agencies operating in India, namely:
- CIBIL™
- Equifax
- Experian
- CRIF Highmark
CIBIL Score Ranges
Below is a list of credit scores that are considered to be good by lenders for lending and loan purposes:
- No history hints that no credit card is used or a loan is taken.
- 350-549 scores indicate that often, there is a failure to pay credit card bills or loan EMIs.
- 550-649 shows a fair CIBIL score, which means that by meeting deadlines, the score is getting boosted.
- 649-749 implies a good CIBIL score and means that the dues are paid on time.
- 750-900 pinpointing excellent scores means that the dues are always paid on time and deadlines are never missed.
| Score Band | Category | What Does It Mean |
| <300 | “No Score” | It means you have never taken a loan or credit card and have no or limited credit history. To get the best offers on loans and credit cards, one needs to start building your credit score. |
| 300-550 | “Very Low credit score” | The credit history is damaged. But, with your awareness and discipline, your credit score can be strengthened. The credit report should be thoroughly checked to find out the reason for your credit score being low and take action. |
| 551-620 | Low credit score | |
| 621-700 | Fair credit score | One is not very far from a credit score that is strong. One should work on improving the credit score to be eligible for the best offers. |
| 701-775 | Good credit score | You have displayed good credit behaviour, and most banks and NBFCs would offer you credit. |
| 775+ | Excellent credit score | You have a track record of superb credit. With this score, you can meet the eligibility criteria of most banks. Also, the NBFCs are likely to get the best offers. |
How to download a CIBIL report?
Below are the steps to download a CIBIL report:
Step 1: Enter the details like Name, DOB, PAN, etc.
Step 2: Verify using OTP authentication.
Step 3: Click on “Get Your Credit Score”.
Step 4: Credit scores from multiple lenders will be obtained.
Step 5: Select CIBIL Score.
Step 6: Choose the language and month.
Step 7: Click on “Download”.
Step 8: The DOB (DDMMYYYY) format is the password of the CIBIL report.
How do you get an instant loan without a CIBIL score?
Mentioned are the different ways available to get an Instant Loan without CIBIL:
- Apply with a guarantor:
- Knowing how to guarantor having a good credit history can build up the loan application.
- Know the role and obligations of a guarantor in a loan agreement.
- Request a smaller loan amount:
- To establish a good repayment history, start with a smaller loan amount.
- Establish the fact that good repayment will lead to higher loan amounts over a period of time.
- Provide income proof:
- To prove the repayment capacity, one needs to understand the significance of income proof.
- Get ready with the documents that can substantiate a stable income to the lenders.
- Offer collateral:
- A collateral kept can mitigate the risk of a lender when the credit score is not present.
- Make a list of all the assets that can be pledged as collateral against secured loans.
- Explain credit inactivity:
- Know the importance of explaining the reasons for the inactivity of credit to the lenders.
- Explain that openness about the financial history will build trust with the lenders.
How do you apply for an instant loan without a CIBIL score?
Borrowers can get instant loans through Instant Loan Apps without a CIBIL score. The process of applying without CIBIL is online, so it is considered to be easy and quick. There is no paperwork involved; hence, it is 100% digital. Let us now go through the 4-step simple process to apply for an instant loan without CIBIL:
Step 1: Applicants can apply for an instant loan without CIBIL through the bank’s website or any instant personal loan app.
Step 2: Register yourself either on the website or app and create a profile. Then, add personal details like age, employment, etc.
Step 3: Choose the loan amount to be availed.
Step 4: Upload documents like PAN Card, Aadhar Card, Salary Slips, and Bank Statements like income proof.
Step 5: The loan is then disbursed within 6 hours of the documents being verified. Once the verification is completed, the loan amount is credited directly to the applicant’s bank account.
Benefits and Drawbacks of a Loan without CIBIL Score
Mentioned below is the summary showing the benefits and drawbacks of raising a loan without a CIBIL score:
| Benefits of Loan Without CIBIL Score | Drawbacks of Loan Without CIBIL Score |
| 1. Accessibility: Easier access for individuals with low or no credit scores. | 1. Higher Interest Rates: Loans may come with elevated interest rates due to perceived risk. |
| 2. Quick Approval: Faster approval process, suitable for urgent financial needs. | 2. Limited Loan Amounts: Lenders may restrict loan amounts for higher-risk borrowers. |
| 3. Flexible Eligibility Criteria: More flexible criteria, considering factors beyond credit scores. | 3. Shorter Repayment Periods: Loans with shorter repayment periods lead to higher monthly payments. |
| 4. Opportunity to Rebuild Credit: Timely repayments can contribute to rebuilding credit over time. | 4. Predatory Lending Practises: Potential for unfair terms or predatory practices by certain lenders. |
| 5. Variety of Loan Types: Different loan options are available, such as personal loans or loans against collateral. | 5. Limited Credit-Building Impact: May not significantly contribute to substantial credit improvement. |
