A loan is an amount of money borrowed by an individual from a financial organization or bank. Individuals are frequently offered loans only after studying and validating their credit history, CIBIL score, and repayment capabilities. Yet, certain loans, known as ‘No Credit Check Loans” are granted without confirming the individual’s credit score or credit history.
This is the best option for anyone who has a bad credit history, a low CIBIL score or is unsure about their credit history. After proving a source of income, the lender makes these loans.
What is a Loan with No Credit Check?
A lender does not conduct a hard credit check on your credit score or analyze your credit history in order to accept your loan application with a no-credit-check loan. Instead, your work situation, income, bank account history, or the security you provide may be considered in the application testing process and conclusion.
Benefits with No Credit Check Loan
Let us now discuss its advantages:
- The high loan amount was approved instantly.
- Even with a poor credit score, funds can be obtained.
- There is no need to be concerned about application rejection.
- In general, the interest rate remains constant.
- Saves time because the operation is brief.
Disadvantages of No Credit Check Loan
Some of the drawbacks of no credit score loans are as follows:
- The lender selects the loan conditions, and because a borrower receives this loan with no collateral or credit check, the terms are generally favourable to them.
- These loans have higher interest rates. As a result, it may raise a borrower’s loan EMI.
- A no-credit-check loan is a short-term loan with a short repayment method. As a result, an applicant’s EMI expense may increase.
Eligibility for No Credit Check Loan
The following are the eligibility criteria that a borrower must meet in order to get loans without a credit check:
- The candidates must be residents or nationals of the country.
- Users must have a consistent source of income and be able to repay the loan.
- Certain financial organizations have a minimum salary requirement, which varies with each bank.
- Candidates must be both self-employed and employed.
- A no-credit-check personal loan requires a minimum age of 18 years.
- In the case of personal loans for commercial purposes, the company must be in operation for a specified amount of time. This can range between two and three years and varies with every bank.
List of No Credit Check Loans
Some of the secured loans without No CIBIL Score available are as follows:
- Vehicle Loan.
- Home Loan.
- Loan for a Business.
- Loan for a House.
- Loan for Education.
- Loan against fixed deposit.
- Loan against credit card balance.
Is it Really possible to get a Loan with no Credit Check?
Yeah, they are known as secured loans, and they need collateral to be pledged. Education loans, business loans, vehicle loans, and house loans are all instances of secured loans.
What is the Minimum Credit Score required?
To qualify for this loan, you must have a CIBIL score of 650 or above. All the same, in genuine cases, the credit check and score requirements are not strict. Verify with us to see whether your credit profile is strong enough to apply for the loans.
Is it possible to get a Vehicle loan in India without a Credit Check?
Such loans are available from both cooperative banks and commercial lenders. Yet, when compared to other sorts of loans, they have extremely high-interest rates.