Personal Loans for People with No Credit History in India

Building a financial profile from scratch can be a challenge, especially when you need a loan. Many individuals, especially first-time borrowers, face rejection because they lack a credit history. The good news is that in India, it is now possible to get a personal loan without prior credit experience, thanks to advances in financial technology and NBFCs (Non-Banking Financial Companies) that use alternative credit scoring methods.

This article examines how individuals with no credit history can access the best personal loan options and which platforms can assist them in getting started with minimal hassle.

Understanding Credit History and Its Importance

Your credit history helps lenders evaluate your capacity to repay loans. If you’re new to borrowing, you might not have one yet, but that doesn’t disqualify you.

Here are a few key points to understand:

• Credit history is a record of your past loans, credit card usage, and repayment behaviour.
• A credit score is generated by credit bureaus (like CIBIL) based on your history.
• No credit history means you’ve never borrowed before, so lenders lack data to assess your risk.
• Lenders use this history to determine whether to approve your personal loan and the applicable interest rate.
• A strong credit score boosts chances of loan approval, but even without one, you still have options.

Personal Loans for No Credit History Borrowers

Many new-age lending platforms and personal loan apps have relaxed eligibility criteria and consider alternative data points, such as income, job stability, education, and banking transactions.

Here are some of the best types of loan options available:

• NBFC Personal Loans: NBFCs are more flexible than traditional banks. They often provide personal or unsecured loans to individuals with no credit history, particularly those with a stable income.

• Instant Loans via Loan Apps: Many personal loan apps provide pre-approved and instant loans, determined by your income or existing relationship with the lender. They utilise alternative credit scoring systems driven by AI.

• Secured Loans: If you’re not eligible for an unsecured loan, a secured loan against a fixed deposit, mutual fund, or gold can be a smart route.

Eligibility for People Applying for a Personal Loan with No Credit History

Even if you don’t have a credit score, you can still qualify based on these basic criteria:

• Age: Typically between 21 and 60 years.

• Income: Minimum monthly salary ranges from ₹15,000 to ₹25,000, depending on the lender.

• Employment: Salaried (with 6–12 months of work experience) or self-employed with a stable income.

• Documentation: Valid PAN card, Aadhaar, proof of income (such as payslips or bank statements), and proof of address proof.

• Account History: Clean banking record with no bounced cheques or overdrafts.

Many lenders may also take into account your educational background, employer profile, and city of residence. Read our complete guide on What is the eligibility for personal loan?

Tips to Get Approved Without a Credit History

If you’re applying for a personal loan with no credit record, keep these tips in mind to increase your chances:

• Maintain a stable income and have proof such as salary slips or ITRs.
• Avoid submitting multiple applications simultaneously, as this may lead to rejections and harm your credibility.
• Use a reputable loan app that considers alternative credit scoring.
• Start small – apply for a modest loan amount to build a solid repayment record.

Why Use a Personal Loan App?

With growing digitisation, personal loan apps have become the go-to platforms for instant, paperless, and easy loan approvals. Here’s why:

• Quick eligibility check based on alternate data.
• Minimal documentation, often just PAN, Aadhaar, and income proof.
• Instant approval & disbursal within minutes.
• Track EMIs and loan status in-app.
• Build credit history from your first successful loan repayment.

Final Thoughts

Not having a credit history doesn’t mean you can’t qualify for a personal loan. With the right loan app, sufficient income proof, and proper documentation, you can easily avail funds for urgent needs or short-term goals. Personal loan apps, such as Bajaj Finserv, simplify this journey and make credit more accessible than ever.