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How to Get Loan Without Guarantor


The need for money is rising as the cost of living continues to skyrocket. Every month, you just have enough money to buy food for yourself and your family and some to spend on other small necessities. As a result, you always borrow money from others or wait until Christmas or other holidays to get gifts. This is quite embarrassing and frustrating.

Fortunately, there is something that can solve the problem. Getting a loan without a guarantor, many don't know this, but you can get a loan without a guarantor. However, this loan is only for those who qualify.

With the advancement of technology, people enjoy the convenience and ease of applying for loans with just a few clicks on their smartphone or computer. Lenders like lendingplate offers this opportunity to those who are eligible.

The demand for loans has increased greatly in the past few years. Several financial institutions have been offering various loan schemes to meet this demand. But some would still be left out if they don't have a source of income and other social security benefits.

In the past, people would borrow from friends, family, or a shopkeeper. This process was very simple in many ways, but it lacked the convenience of modern equipment and financial technologies. Banks were very new in Australia when they began issuing credit cards to reduce fraud and expand their customer base. The first use of a loan was actually for real estate, as people used their houses as collateral for mortgages during the 1960s. The banks began issuing loans this way during the 1970s, which has been a huge benefit. Today, Indians can get loans easily without requiring any guarantor.

With this new trend of getting a loan without a guarantor, you can easily get financed with very competitive terms and conditions. Using the internet, you get to search for financial services such as credit card lenders, personal loans, and auto loans with no guarantor.

Ways to Get a Loan Without a Guarantor

There are several ways that you can get a loan without a guarantor. A reliable source of information on this matter is from websites like lendingplate.

1. Good CIBIL Credit Score of 750 and Above

If your CIBIL score is 750 or more, then you stand a chance of getting a loan without a guarantor. You must also have a steady source of income and be free from defaults, court judgments, and other credit-related issues.

A CIBIL credit score is a form of credit rating which is based on your payment history and other financial details. It's a 3-digit number that ranges from 300 to 900. The higher the number, the lower the risk associated with getting a loan. CIBIL credit scores range from 300 to 900, with 750 being a very good score. So, if you are sure, you have a good CIBIL credit score, then be sure to receive a loan without needing a guarantor.

2. You Have a Good Credit History

Your credit history will play a significant role in getting approval for your loan without a guarantor. Your credit history is a part of your banking records that contain information such as payment history and details of your loans. If your payment records are not very good, then it is likely that you will not be able to get a loan without a guarantor. Hence, it is important that you have a good credit history of responsible borrowing so that you can get the loan with minimal risk.

A good credit history means that you have a track record of responsible borrowing. This shows that you are a dependable borrower who pays back his/her loans on time. If this is the case, then your loan application will be approved much more easily as there is less risk involved in granting you the loan.

3. Reliable Source of Income and Age 21 or Above

Getting a loan without a guarantor is very simple. You can only apply for a loan if you have a steady income, either monthly or annual, and you are over 21 years of age. If you don't have a steady income, then you need to find another source of funds, such as borrowing from parents and friends or getting a part-time job.

There are Different Types of Income that Include:

Salary - If you have a job, then this is your reliable source of income. One important thing to note here is that if you get an annual salary, then it is likely that your monthly salary will not be sufficient. So, if you have an annual and a monthly salary but find that it doesn't cover your needs all year round, then you need to find another source or cut out small expenses from your monthly budget. So, no matter how much you earn annually or monthly, it must cover all the necessities for survival, such as food, shelter, and transportation. In short, it must cover the minimum requirements to live in dignity and comfort.

Social Security Benefits - If you are on a social security plan, you can get a loan without a guarantor. Social security benefits are paid to people who have income below the poverty level. Even if you have a small income, if this is your reliable source of income, then you will be able to get a loan without a guarantor with less difficulty.

In most cases, if you don't have a reliable source of income, then it's unlikely that the lender or agency will be willing to grant you the loan. It's very good if you have a steady source of income to assure the lender that you can pay back the loan.

A good CIBIL score and a steady income make you eligible to get a loan without a guarantor. It's also advisable to fill up all the information needed in your application, including your employment status, monthly bank statements, and latest payslip. This is for the lender or agency to assess if you need a loan and the amount to be approved.

You can prove your employment status with a letter of employment and a salary slip.

Why is your employment status ideal when applying for a loan without a guarantor?

You will need to prove your employment and salary unless you are self-employed. This will help the lender or agency assess how much you can afford to pay back. Proof of income is very important in getting a loan. Without this, the chances of getting a loan without a guarantor become slim.

A letter of employment is basically a letter from your employer stating that you are employed at their company and your salary. A salary slip that shows your monthly or annual salary also implies that you are employed and have an income source.

This will help the lender or agency understand how much money you are earning and what your income is like. This will also prove to them that you have a reliable source of income.

Apply for a Loan Without a Guarantor from an Agency

You can apply for a loan without a guarantor if you have a good CIBIL score, steady income, and a good credit history. You need to find a suitable agency or lending company that offers loans to people like lendingplate. Then you need to fill up an application form with all your financial details and employment status.

The agency will assess your application, and if they see that your CIBIL score is good, your income is steady, and you are employed, then they may approve your loan. This may take a few hours or a few days, so be patient while waiting for approval.

Getting a loan without a guarantor is great for people who want to get a loan but do not have collateral to secure the loan. To begin, you should be aware that there are two types of lenders: banks and non-banks.

Banks are traditional lenders and provide loans with a guarantor, such as your family member or friend. The approval process can be a bit longer than with other lenders, but typically, the interest rates are much lower as well.

Non-banks, on the other hand, are typically online or local moneylenders and focus on providing loans without guarantors. An important fact about loans without guarantors is that you will not be required to give up any personal assets if the loan goes bad. This is good because you are not risking your life savings or other valuables. If you have exhausted all these means and still didn't get approved, then you can try asking your friends or relatives to be your guarantor. The risk is high in this type of loan because there will be consequences if the borrower fails to repay the loan. You must ensure they will have time to pay back the loan in case something happens to them or they lose their job.

The Benefits of Getting a Loan Without a Guarantor

You won't waste time looking for a guarantor. Getting a loan without a guarantor is highly recommended because it will save your time and effort looking for someone who can be your guarantor. You can check online or local lending agencies offering loans without a credit check and without income verification.

A loan without a guarantor is ideal for people who want to get a loan but do not have someone who can be their guarantor. A bank will consider your application for a loan if you have a steady source of income and a good track record of paying off your debts. This is why you need to prove to them that you have a reliable source of income.

No Need to Give Up Something as Collateral

If you take a loan through a bank that requires guarantors, then there is no way to apply for a loan without a guarantor. However, if you want to avoid this problem, paying an unreasonable interest amount is an option. If you have an excellent credit score and income, then applying for such loans will lower the interest rate considerably, giving you more relief than taking the help of someone else.

The application process for such loans is pretty fast compared to the banks. If you have a bad credit score and a low income, then it will take quite some time to get approved by such lenders. But it all depends on your credit score and income; if you have both, then there is no reason why you can't get the loan.

You may also read this: Reasons to apply for a personal loan

Loan Without Guarantors

All you need is a valid email ID and a mobile number to apply for these loans. All you will require is an income and some government documents, which include your PAN card and Aadhar. You don't have to give any collateral or any other valuable assets to get that loan. This makes it harder for the lender to refuse your loan request, and they will be more willing to lend out money without anyone else being present as a guarantor.

Bottom Line

The rising cost of living has forced many people, especially the generation that grew up with the Internet, to get loans. "Loan without a guarantor" is a slogan of this generation. It's almost a necessity if they want to go on holiday, buy a house, or even start their own business. A loan without a guarantor is a new concept, and not many people are already aware of how it works. This post has guided you on how to get loans without a guarantor.

If you have an excellent CIBIL score and an income that will assure the lender that you can pay back the loan, you stand a chance of getting the loan. It is important to understand that this type of loan is unsecured, which means that it's not backed by any collateral like your home or car.

A loan without a guarantor can be easy as long as you have all the legal documents and proper documentation of your identity, residence, and employment status. The lender will process your loan application in hours if you have all the documents. This is the reason why people prefer to take these types of loans.

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