Loans allow individuals to fulfil their dreams by overcoming financial hurdles and help manage unexpected expenses. A short-term loan is one such popular type of loan, which provides funding with flexible terms. And getting a short-term loan without CIBIL Score has become a significant alternative in the financial landscape. These loans cater to individuals seeking swift financial support, ensuring greater inclusivity and ease of access.
What is a short-term loan?
Short-term loans are a type of borrowing designed to be repaid over a short period. They provide quick access to funds for urgent needs. These loans usually have simpler application processes and may have higher interest rates owing to shorter repayment periods. Short-term loans help address immediate financial gaps without committing to long-term debt.
What is a CIBIL Score?
CIBIL Score, also known as credit score, is a numerical representation of an individual's creditworthiness. Your CIBIL Score is a three-digit number that ranges from 300 to 900. A high CIBIL Score indicates good credit health, increasing the likelihood of loan approvals at favorable terms. Most banks and NBFCs require a minimum CIBIL Score of 685 or higher to get loan approval.
What are the factors that can lower CIBIL Score?
There are many factors that can reduce your CIBIL Score, including
- Having multiple ongoing loans
- Defaulting or delaying on EMIs
- Having a high credit utilisation ratio
- Multiple rejections of loan applications
How to get a short-term loan without CIBIL Score?
Getting a short-term loan without a CIBIL Score can be challenging. Getting a secured loan, peer-to-peer lending, or a loan from a credit union are a few options you can choose when you are looking for a loan without CIBIL Score. Remember that while these options might provide opportunities, they might also come with higher interest rates and fees. It's important to carefully understand the terms and do your research before committing to any loan agreement.
Here are some ways you can consider:
1. Peer-to-peer (P2P) lending
P2P lending platforms connect borrowers directly with individual lenders. These lenders might be more willing to consider your individual circumstances rather than relying solely on credit scores.
2. Explore alternative lenders
Traditional banks and financial institutions rely heavily on credit scores, but those who want a short-term loan without a CIBIL Score check can explore local money lenders as an alternative. It must, however, be noted that the interest rate charged by such money lenders is considerably higher than banks or NBFCs.
3. Opt for a joint loan
You can apply along with a co-borrower who has a high CIBIL Score to improve the chances of getting a personal loan.
4. Consider putting up a collateral
You can also explore the option of a secured personal loan, where you can put up a collateral such as gold ornaments or property.
5. Apply with a guarantor
The guarantor serves as a co-signer for the loan and provides a financial guarantee to the lender that the loan will be repaid, even if the primary borrower cannot meet their repayment obligations.
How to improve your CIBIL Score
There are various ways to improve your CIBIL Score, including
- Timely EMI repayments
- Keeping credit utilization ratio below 30%
- Reporting any inaccuracies in your CIBIL report
Bajaj Finance Limited offers short-term loans, such as Insta Personal Loans, without you having to go through a CIBIL Score check. These are pre-approved offers for our existing customers. Repayment span of an Insta Personal Loan ranges from 6 months to 63 months. As Bajaj Finance Limited verifies your credit score beforehand, there is no need for you to know your CIBIL Score while checking your pre-approved loan offer. We consider various other factors, such as your financial background, income specifics, and more, before creating your Insta Personal Loan offer. New customers can also get an Insta Personal Loan.
How to apply for a short-term loan with low credit score?
All you need to do is click on ‘Check Offer’ on this page, enter your mobile number and OTP to know the loan amount you are eligible for. You can go ahead with the offer or choose a lower amount. After filling your details, updating KYC, and submitting documents if needed, our representative will call you with the next steps.
Click on the link below to know more about our Insta Personal Loans and check your pre-approved offer today.
