Getting a personal loan with no credit history in India is possible but harder, because lenders can't see how you handle repayments yet. As a new-to-credit (NTC) borrower with a -1/NA CIBIL score, your fastest path is to build a thin credit file first — usually via a secured (FD-backed) credit card or a small lender loan — then apply once you have 6+ months of clean repayment behaviour.
If you've never taken a loan or a credit card, you have no credit history — and that's exactly what makes your first personal loan no credit history application tricky. This guide explains what a -1 or NA score means, why pure-NTC personal loans get rejected, and the precise order to build a CIBIL score from zero so your first real loan gets approved on fair terms in 2026.
What "no credit history" really means (-1 and NA scores)
In India, your credit history is tracked by four RBI-licensed bureaus — CIBIL (TransUnion), Experian, Equifax and CRIF High Mark. They can only score you once there's data to score. If you've never held a loan or credit card, there's nothing to calculate a number from.
That's why a brand-new borrower sees one of two values instead of the usual 300–900 number:
- -1 (NH / No History): You have no credit accounts and no enquiries on record. You're a completely blank slate.
- NA (Not Applicable / NT): You have some footprint — maybe an enquiry, or an account that's too new (typically under 6 months) — but not enough repayment history for a reliable score.
Neither is a "bad" score. A -1/NA is simply unscored — the bureau is saying "we don't have enough information yet." It is not the same as a low score caused by missed payments. The catch: many lenders' automated systems treat "no score" with caution, because they can't predict your behaviour. The fix isn't to dispute anything — it's to generate clean data. (To see what's on your file today, you can check your credit score free with a soft pull that doesn't affect it.)
Why your first personal loan often gets rejected
An unsecured personal loan is pure risk for the lender — no collateral, decided almost entirely on your score + income + stability. With no score, you've removed one of the three legs. Common rejection reasons for NTC applicants:
- No repayment track record, so the lender can't model default risk.
- Thin or no income proof (informal income, very new job, no salary slips).
- Applying to a large bank that has a strict minimum-score cut-off and rarely approves true NTC files.
- Multiple applications in a short window, each leaving a hard enquiry — which makes you look credit-hungry. Understanding the difference between a hard and soft inquiry helps you avoid stacking damage before you've even started.
The takeaway: don't lead with a big unsecured loan. Build a small, safe credit footprint first.
The NTC starter ladder: build credit before you borrow big
Think of building credit as a ladder. Each rung creates positive repayment data that the bureaus pick up, lifting you from "unscored" toward a healthy score. Here's the order that works for most new-to-credit Indians.
Rung 1 — Secured (FD-backed) credit card
This is the single best NTC tool. You place a fixed deposit (often ₹10,000–₹25,000) with a bank, and it issues a credit card with a limit of roughly 80–90% of that FD. Because the bank holds your deposit as collateral, approval barely depends on your score — making it ideal when you have none.
Used well, a secured card reports your activity to the bureaus every month and starts building history fast. The rules:
- Spend a little, then pay the full bill by the due date — never just the minimum.
- Keep your credit utilisation under 30% of the limit.
- Run it cleanly for 6–12 months. Many issuers then upgrade you to a regular unsecured card and refund the FD.
If you're choosing between card types, our guide on secured vs unsecured credit cards breaks down fees and limits, and how to choose your first credit card covers what to look for as a beginner.
Rung 2 — A small loan you can actually get approved for
Once a secured card is reporting (or alongside it), a small loan adds a second positive account. Options that are friendlier to NTC borrowers:
- Salary-account / pre-approved offers: If you draw a salary into a bank account, that bank can see your income flow directly. Many extend small pre-approved personal loans or overdrafts to salaried customers even with a thin file — your relationship and cash flow substitute for a long credit history.
- NTC-friendly fintech / NBFC loans: Several digital NBFCs specifically underwrite NTC and thin-file customers using income, bank-statement analysis and employment data rather than relying only on a bureau score. Borrow a small amount, repay every EMI on time, and you've created a clean loan tradeline. (Read NBFC vs bank loan to understand the trade-offs — NBFCs are often more flexible but may price risk higher.)
- Consumer-durable / no-cost EMI: Buying a phone or appliance on EMI through an NBFC creates a small, structured loan that reports to the bureaus. Pay it off as scheduled and it counts as positive history.
A word of caution: NTC-friendly does not mean "borrow at any cost." Avoid unregulated app lenders. Stick to RBI-regulated banks and NBFCs, and always check the documents you'll need for a personal loan before you apply so you're not rejected on paperwork.
Rung 3 — Add a co-applicant or guarantor (fallback)
If you need a meaningful loan before you've built history, bringing in a creditworthy family member can rescue the application. A co-applicant's income and score are considered alongside yours, improving eligibility; a guarantor promises to repay if you default. Both carry real liability for that person, so it's a serious ask — read co-applicant vs guarantor before going this route, and treat it as a bridge, not your main plan.
NTC options at a glance
| Option | Score needed | Builds CIBIL? | Best for | Watch out for |
|---|---|---|---|---|
| Secured (FD-backed) card | Very low / none | Yes — monthly | Almost every NTC borrower | FD locked while card is active |
| Salary-account loan/OD | Low (relationship-based) | Yes | Salaried with a bank relationship | Limited to existing customers |
| NTC fintech / NBFC loan | Low–moderate | Yes | Thin-file, steady income | Higher pricing; use only RBI-regulated lenders |
| Consumer-durable EMI | Low | Yes | Small, planned purchases | Don't over-buy for the sake of credit |
| Co-applicant / guarantor loan | Theirs matters | Yes (for both) | Urgent larger borrowing | Real liability for the other person |
How to build a CIBIL score from zero
A score is built from behaviour over time. Once you have at least one active credit line, these habits move an unscored file toward 750+:
- Pay on time, every time. Repayment history is the heaviest factor in your score. One full year of zero missed EMIs/bills is the foundation. To see why each habit matters, read what affects your credit score.
- Keep utilisation low. Using a small slice of your available limit signals control. Maxing out a card — even a secured one — drags your score down.
- Don't chase many products at once. Each application is a hard enquiry. Space them out; let one account season before opening the next.
- Keep your oldest account open. Length of history helps, so don't close your first card the moment you get a better one.
- Be patient. Bureaus typically refresh monthly, so a usable score appears after roughly 6 months of activity — but how often CIBIL updates depends on when each lender reports.
After a few months, pull your report and read it line by line — our walkthrough on how to read your CIBIL report shows you exactly what to check so an error doesn't quietly hold you back.
Your first real personal loan: a smart strategy
Once you've spent 6–12 months building a clean file, you're ready to apply for a genuine personal loan with far better odds. Sequence it like this:
- Confirm your score has formed. Aim for a healthy band before applying — see how to reach a 750+ CIBIL score.
- Borrow modestly first. A smaller loan you can comfortably repay protects your new, fragile history and proves you to bigger lenders later.
- Match the loan to your income. Lenders cap your EMIs as a share of income (FOIR). Check minimum salary norms for a personal loan so you apply where you genuinely fit.
- Compare before you commit — and mind the GST. Rates vary widely by lender and profile (commonly in the ~10–24% p.a. band for personal loans, as of 2026; thin-file borrowers sit at the higher end). Note that 18% GST applies to the processing fee, not to the loan principal or interest. Floating retail rates are usually tied to an external benchmark (EBLR), so they reset when the RBI changes the repo rate.
- Use a soft-pull pre-check first. Don't fire off applications blindly and rack up hard enquiries.
Ready to test the waters? Run a free eligibility check via /apply — it's a soft credit pull, so it won't dent your score, and it shows which RBI-regulated partners are likely to approve you before any hard enquiry hits your report.
Disclaimer: Interest rates, fees and eligibility rules vary by lender and change over time — always verify the latest terms directly with the lender before applying. RupeeQuik connects users to RBI-regulated lending partners and does not itself lend.
Frequently Asked Questions
Can I get a personal loan with no credit history in India?
Yes, but a true unsecured personal loan is hard to get as a pure NTC applicant. You'll have better luck with a salary-account or pre-approved offer from a bank where you already hold an account, an NTC-friendly NBFC, or by adding a creditworthy co-applicant. The reliable approach is to first build 6+ months of repayment history with a secured card or small loan, then apply.
Is a -1 or NA credit score bad?
No. A -1 (No History) or NA score means you're unscored, not that you have a poor score. The bureau simply doesn't have enough data yet. It's not the same as a low score from missed payments. Open one credit line, use it responsibly, and a real 300–900 score forms within a few months.
What is the fastest way to build a CIBIL score from zero?
A secured (FD-backed) credit card is usually fastest, because approval barely depends on your score and it reports to the bureaus every month. Spend a small amount, keep utilisation under 30%, and pay the full bill on time. Combine it with one small loan and you'll typically have a healthy score in 6–12 months.
How long does it take to get a credit score as a new borrower?
Plan for around six months. Bureaus generally need a few cycles of reported activity before they can generate a reliable score, and lenders report on their own schedules. Consistent on-time payments during this window matter far more than the exact number of days.
Will checking my own credit hurt my new score?
No. Checking your own report — or using a soft-pull eligibility tool — is a soft enquiry and never affects your score. Only formal loan/card applications create hard enquiries, which can nudge a thin file down, so space those out.
