5 Ways to Secure a Personal Loan Without Credit Score

Personal Loan Without Credit Score:

If you don’t have a credit score, getting a personal loan from traditional banks can be difficult. However, there are still options available for you to borrow money. Here are five alternatives to personal loans that you can qualify for without a credit score.

Personal Loan Without Credit Score:

1. Loan Against LIC Policy

If you have a life insurance policy with a surrender value, you can use it as collateral. Life insurance policies from LIC can be used to get a personal loan. You do not need a credit score for this. The process is easier if you have paid premiums for at least three years. This option works well for people without any credit history.

2. Loan Against Property

If you own a house or commercial property, you can use it to get a loan. This is called a Loan Against Property (LAP). Banks and NBFCs offer this loan at lower interest rates because the property acts as security. It is a good option for large loan amounts with long repayment periods, especially for self-employed individuals.

3. FD-Backed Credit Cards

You can get a credit card backed by a fixed deposit (FD). This option does not require a credit score. Many banks offer this type of credit card. You can start with a small deposit, such as ₹10,000. There is no need to show proof of income or existing credit history. By using the card responsibly and paying on time, you can build your credit score.

4. Rental Deposit Loans

If you need to pay a high rental deposit and don’t have enough savings, you can take a rental deposit loan. Some lending institutions provide this loan. The loan is paid directly to the landlord. This is useful in cities where rental deposits can be as high as 6 to 10 months of rent. These loans are unsecured and are offered by companies like Bajaj Finserv and LoanTap.

5. Overdraft Against Savings Account

Many banks offer an overdraft facility on savings accounts. This allows you to withdraw more money than your balance up to a set limit. This pre approved credit line does not require a credit score. It is often based on your relationship with the bank and your account activity.

These alternatives can help you borrow money even without a credit score. Be sure to make repayments on time to avoid any financial issues.

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