Question : Since I recently completed my studies and started my first work, I do not yet have a CIBIL score. How can I apply for a personal loan, or any loan, really?
Answer : It is very difficult for any lender to give you a loan if you do not have a credit history. However, if you want to create a credit history you need to first secure a loan. Yes, its a tricky situation.
NOTE : You can get your CIBIL score on your phone for FREE.
Following are your choices
Fixed deposit backed credit card : The idea behind fixed deposit-backed credit cards is straightforward. Open a fixed deposit account with your bank and use the account as collateral when applying for a credit card. On this credit card, the bank often grants you a credit limit that is 80–85% of your fixed deposit. Due to the monthly reports that credit card issuers make to CIBIL, this is the quickest way to establish credit history.
Credit card from your bank where your salary is credited : Credit card issued by the bank where you receive your salary: These days, employers provide you the option of getting a credit card from the bank where your paycheck is credited. Find out if your firm offers a card if it does.
Apply for a personal loan with a co-borrower : You can submit an application for a modest loan with a co-borrower. A solid credit history and CIBIL score are required for the co-borrower. When you obtain a loan in this manner, each repayment is noted against both of your names, and you are subsequently added to the system.