Personal Loan Alternatives for Those Without a CIBIL Score

If you've never taken a loan or owned a credit card, there's a good chance you don't have a CIBIL score yet.

That doesn't mean you're financially irresponsible; it just means you're off the radar. But when the need for funds arises, especially in the short term, this missing score can limit your options.

Most lenders rely heavily on credit reports to judge whether they should lend you money. There are still ways to get access to funds, even if you're applying for a Personal Loan without CIBIL score. Without one, you're often seen as a higher-risk borrower. However, that doesn't mean you're stuck.

Gold has long been more than just a cultural asset in India. It's also a financial backup when you're short on cash. If you own gold jewellery or coins, you can pledge them to get a secured loan. You don't need a credit history; the process is usually quick.

Here's how gold loans can work for you:

Loan amount based on gold value: You typically get around 75% of the gold's market value as a loan. So, for jewellery worth Rs. 1.5 lakhs, you might be eligible for about Rs. 1.1 lakhs.

Flexible repayment options: Some lenders allow interest-only payments during the loan term, with principal repayment at the end.