Can you apply for a short-term loan without a CIBIL check? | Credit Help India

Can you apply for a short-term loan without a CIBIL check?

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Can you apply for a short-term loan without a CIBIL check?

Tuesday, July 2, 2024


The answer is yes! Individuals often need short-term financial solutions to address immediate concerns. Financial emergencies don't always wait for ideal CIBIL scores, which is why short-term loans are designed to offer a swift flow of funds to tackle unexpected expenses.

As per the survey, more than 200 billion worth of ₹10,000 loans were disbursed in 2022-23, more than twice the amount of such short-term loans disbursed in 2019-20. The number of such loans disbursed nearly tripled in the same period.

The data given helps us easily understand the weightage of short-term loans. So, whether you are facing a sudden medical expense or any other urgent financial need, understanding everything about short-term loans without CIBIL checks can be crucial.

This blog aims to spread light on the possibility of obtaining short-term loans without a CIBIL check, providing a simplified overview of the available options. Let us start the journey.

What is a short-term loan?

Aim? These loans are commonly used to address immediate financial needs or take advantage of opportunities that require quick capital.

How do you get a short-term loan without a CIBIL Check?

1. Look for the Guarantor

The best way to get a loan without a CIBIL score is to find someone to act as a guarantor. You can ask any of your family members, friends, or colleagues to become your guarantor; evidently, the guarantor should have a healthy CIBIL score, ensuring the applicant’s loan will be approved easily.

Point to be considered: Finding a guarantor may only be possible if the applicant has a trustworthy reputation.

2. Request a loan of a lower amount.

Suppose an individual has a low CIBIL score or lacks the same. The probability of getting a higher loan amount is problematic. Yes, at the time, chances are the lender may be willing to offer a loan if the amount is lower. The lender then balances the additional risk by charging a higher rate of interest.

One thing that a lender will always look for When the amount is lower, the lenders would be confident that the borrower will find a lower loan amount easier to repay.

3. Prove your trustworthiness

If an individual has not borrowed any loan before or has used credit cards very rarely, chances are the person won’t hold a proper credit history. Keeping in mind the scenario, lenders will not consider these issues if the person has a stable and steady source of income.

TIP: This can be proved via salary slips and bank statements.

4. Get (NA) or No History (NH) on your credit report

NA or NH on a person’s credit report showcases there was no credit activity in the past three years or more. Therefore, before applying for a loan, applicants should check their credit report, which can be easily obtained free from financial entities, including lenders.

Why NA or NH is important? Because an NA/NH remark will explain the reason for the lack of credit activity to lenders. Thereafter, a loan may be approved.

5. Opt for a collateral-based loans

Loans such as instant or short-term loans do not ask for any collateral or security.

Attention: This point can only be taken into account if the borrower has a high or good CIBIL score.

Now if the credit score is lacking, borrowers can still apply for loans by opting for loans backed by collateral such as shares, property, fixed deposits, jewelry, etc.

As a matter of fact, if a borrower’s assets are pledged as security, almost every lender will be willing to advance a short-term loan.

How do you apply for short-term loans without CIBIL?

Step 1: Start by researching the lenders who specialize in providing short-term loans without placing a focus on CIBIL score checks.

Step 2: Lenders may have different eligibility criteria while they may not focus on your CIBIL score, they might consider other factors such as your income, employment status, and overall financial health. Understand this point before applying.

Step 3: Gather necessary documentation that lenders may require (proof of income, employment details, bank statements, etc.)

Step 4: If you are applying, visit the lender's website & fill out the application form. ( This step is added keeping in mind the concern of online application and not offline)

Step 5: This step involves reviewing the documents you submitted.

Step 6: If your application is approved, the lender will provide details about the loan terms, including the interest rate, repayment schedule, and any applicable fees.

Did you know that the total value of loans below 10,000 rupees grew 37% in the financial year ending March 31, 2023, while loans of 10,000-50,000 rupees rose 48%, according to CRIF data.

What to expect when taking out a short-term loan without a CIBIL check?

Short-term loans without a credit check often come with higher interest rates. Lenders may view these loans as higher risk and the interest rates are set accordingly. Be prepared for the cost of borrowing to be relatively elevated compared to traditional loans.

Short-term loans typically involve smaller loan amounts compared to long-term loans. Lenders may offer an amount based on your income, employment status, and other factors.

As the name suggests, short-term loans come with a brief repayment period. It's common for repayment to be expected within weeks or months, rather than over several years.

While lenders may not check your CIBIL score, they will likely use alternative methods to assess your creditworthiness. This may include looking at your income, employment stability, and other financial factors. Prepare to provide documentation that supports your ability to repay the loan.

What are the Things you should consider before getting or applying for a short-term loan without CIBIL Check?

1. Eligibility criteria

Understand the eligibility criteria set by the lender. While a CIBIL check may not be a requirement, alternative lenders may have other criteria, such as proof of income, employment stability, etc.

2. Interest rates

It is important to understand the interest rates and any additional fees associated with the short-term loan. Since these loans often come with higher interest rates, it's essential to evaluate the overall cost of borrowing first.

3. Hidden charges

The most important thing to do when applying for a short-term loan is to read the loan agreement carefully and examine if there are any processing fees, late payment penalties, or other charges associated with the loan.

4. Repayment plan

Analyze and review the repayment terms, including the loan period and the frequency of payments. Short-term loans typically have a brief repayment period, so ensure that you can comfortably meet the repayment schedule.


Before applying for any loan, it's advisable to have a comprehensive understanding of your financial standing, whereas obtaining a short-term loan without a CIBIL check is indeed possible, however, it's crucial to approach this option with careful consideration. Understand the terms, repayment conditions, and overall cost of borrowing from alternative lenders. While these loans can provide quick relief, responsible financial management is key to ensuring a positive outcome.

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