A CIBIL score is a three-digit number that indicates an individual's creditworthiness. It is issued by the Credit Information Bureau India Limited and is among the first things lenders look into whenever you apply for a loan. But what happens if you don't have a CIBIL score? While it may seem daunting, it is entirely possible to get a personal loan without a CIBIL score. You may be new to credit, or perhaps you just experienced a few financial mistakes which brought your score down either way, several other alternatives can allow you access to funds.

Opt for a Joint Loan

One of the best means to get a personal loan without CIBIL score is to apply for a joint loan along with someone who has a good credit history. For example, if your spouse has a good CIBIL score, applying for a loan together increases the likelihood of the bank approving the loan. Some lenders even allow you to apply for a loan in your spouse's name, which helps you borrow a larger sum, such as a home loan with an attractive interest rate.

Find a Guarantor

If you are not able to qualify on your own for a loan, consider requesting a family member, perhaps your parents or your siblings, with a favourable credit standing, to be your guarantor. Here, the lender will simply check the guarantor's CIBIL score to consider your loan application. This point is applicable in most cases, like in student loans or those without a CIBIL history, to apply for a personal loan.

Consider Putting up Collateral

Another way you can avoid being dependent on a CIBIL score by applying for a secured loan is by offering an asset as collateral. Gold loans are well-known in India due to fast-paced processing and low documentation. Lenders accept gold, land, automobiles, or other high-value items as security. The loan amount depends on the value of the asset and serves as insurance to the lender in case of defaults.

Although having a good CIBIL score improves your chances of getting a loan, it’s not the only way to go about it. With some effort, like a joint loan, a guarantor, or some form of collateral, you can still be eligible for personal loans when needed. Just be sure to borrow responsibly and use this opportunity to develop your credit profile for the future.