Last Updated on Jan 31, 2022 by Manonmayi

Financial emergencies might spring up any time, and when they do, many of you usually draw upon your savings to fund them. However, when you don’t have sufficient savings at your disposal or if you do not want to redeem your investments, you can avail of loans. 

There are instant personal loans available in the market that offer funds at the earliest so that you can meet your financial obligations. However, when you apply for such loans, the lender checks your credit score before sanctioning the funds. 

But, what is a credit score? And, how does it impact your process of borrowing? Let’s read further.

This article covers:

What is a credit score?

The credit score is a numerical figure ranging between 300 and 900. It measures a borrower’s creditworthiness, i.e., can the borrower repay the loan being sought. 

The credit score is calculated and published by authorised credit bureaus like TransUnion CIBIL. It has, in fact, come to be called the CIBIL score. There are also other credit agencies such as Equifax, Experian and CRIF Highmark that also conduct credit analysis and assign scores. The score is calculated based on your past credit patterns and credit history. 

Loans are usually easily accessible to borrowers who have an average or a good credit score, i.e., a score of 650 or 700 and above.

Can you get a loan without a credit score?

If you have never availed of a loan or a credit card, you might not have a credit score. Alternatively, if you have a poor credit history, i.e., you had defaulted on your past loans, your credit score would be low. 

Not having a credit score altogether or having a very low score can lead to the rejection of your loan application. However, when it comes to instant personal loans, there are ways in which you can avail of a loan even without a credit score. Do you know how? Read on to find out.

Ways to get an instant loan without a credit score

Look for secured loan options

Secured loans are granted against the value of an asset that you mortgage with the lender. Since an asset backs the loan, the lender faces a low repayment default. Even if you default on the loan, the lender can seize the asset and sell it to realise the outstanding loan amount.

Thus, when you opt for a secured loan, you can get the fund even with no or low credit score. 

Pro tip: Use your investments like gold, securities, property, etc., to apply for a secured loan. You may mortgage them and get an instant loan against their value.

Add a co-borrower

A co-borrower is another individual who applies for the loan with you. When you add a co-borrower, the co-borrower’s eligibility qualifications get added to yours. This enhances the overall eligibility qualifications and allows lenders to offer you the loan even in the absence of a credit score.

Pro tip: Look for a co-borrower with a high credit score and a stable source of income to get the funds easily and instantly. 

Look for a guarantor

A guarantor is different from a co-borrower. A co-borrower shares in the loan responsibility. A guarantor, on the other hand, promises to repay the loan if you fail to do so. Any individual with a credit score and an existing relationship with the lender can act as your guarantor. When there is a guarantor, the lender is assured of the repayment, and so, the loan is offered easily.

Pro tip: Choose a guarantor with sound financial standing and a high credit score. 

Limit the loan amount

Low-value loans are sanctioned easily, even without a credit score. So, try and limit the amount of loan that you seek. The lender might sanction the funds if your loan size is limited since the repayment default is small. 

Pro tip: Try and draw upon your savings to minimize the loan requirement. This would also help you cut down on the high-interest costs that you would incur without a credit score. 

Look for NBFC or HFC lenders

Non-Banking Financial Companies (NBFCs) or Housing Finance Companies (HFCs) have lenient loan sanction conditions. You can reach out to them to avail of an instant loan when you don’t have a credit score. Such financial institutions might offer you the loan at relaxed eligibility parameters.

Pro tip: Compare the NBFCs and HFCs willing to offer you the loan. The interest rate would be higher since the institutions take a significant risk in sanctioning the funds. When you compare, you can find the best rate on the loan.

Get an NA/NH remark on the report

A Not Applicable (NA) or a No History (NH) remark on the credit report means you are new to the credit world. This shows that you have never availed of credit so far. Many lenders make a concession for reports with the NA or NH remark. So, get this remark from the credit bureau and then apply for the loan. 

Pro tip: Despite the NA or NH remark, not all lenders might be willing to offer the loan. You would, thus, have to find potential lenders who would be interested in advancing you the funds.

Get a loan on your income proof

Instant personal loans are usually issued based on your income. So, show your lender a stable source of income. Submit your salary slips or audited financial statements of your business (if you are self-employed). If the lender finds your income level desirable, they would mostly sanction the loan.

Pro tip: When submitting your income proof, submit a statement that shows all your income sources, like the ITR. If you have multiple sources of income, it improves the chances of loan sanction.


Availing of an instant loan without a credit score is not impossible. You just need to know about various other avenues and nuances associated with them. So, use these tips and avail of an instant personal loan for financial emergencies even when you don’t have a credit score or if your credit score is too low to qualify for the loan. 

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