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May 13, 2025
A Personal Loan is unsecured credit issued by Banks and NBFCS to fulfil lifestyle and emergency needs. It has become a widespread credit usage for individual needs, as obtaining a Personal Loan is fast, hassle-free, and with minimum documentation requirements.
Most lenders provide Personal Loans to salaried individuals as unsecured credit for short-term funding and seek prompt rotation of funds. Because Personal Loans are unsecured and granted without collateral, lenders have established a lending policy to ensure that the loan amount is repaid with interest within the specified time frame. Consequently, banks increasingly rely on CIBIL (Credit Bureau of India Ltd) information to assess loan seekers’ creditworthiness.
The CIBIL (Credit Bureau of India Ltd) began operations in 2007 as an agency for recording the credit usage data of individuals and organisations. Lenders regularly share data about the credit extended, which is then tabulated, and a credit history is maintained. This data is provided to the lender upon request. Before the CIBIL’s establishment, banks relied on their data to verify whether an applicant for a Personal Loan was a defaulter. Now, with a single point of record maintenance, lenders can share their customer experiences.
CIBIL initiated the system of generating a score in 2011, giving Lenders a consolidated numeric value for the creditworthiness of Loan seekers. To keep their default percentage minimum, most banks only process Personal Loans for applicants if their CIBIL score exceeds the required benchmark.
The exception is a few Lenders, of which HDFC Bank is the leading lender that considers Personal Loan Applications of lenders without a CIBIL Score.
Over the years, HDFC Bank has developed a robust Personal Loan portfolio. It has segmented its customer data to prioritise customers who have consistently repaid credit. If an applicant lacks a CIBIL Score, HDFC Bank will assess the Personal Loan request based on the merits of the following policy requirements.
When receiving a Personal Loan request, the HDFC Bank sends an enquiry to CIBIL to check the applicant’s credit history and CIBIL Score. In case the applicant is a first-time loan seeker or has recently acquired credit, the CIBIL will report the same as follows:
How will HDFC Bank evaluate the request and issue a Personal Loan to an applicant without a CIBIL Score? To obtain a Personal Loan from HDFC Bank without a CIBIL Score, the applicant’s profile must meet the following criteria.
Employment with a Company Included in the HDFC Bank Company Category List: HDFC Bank Processes Personal Loans for applicants whose employers are on the approved list. Applications are viewed favourably for individuals employed in Elite/Super A/Cat A and B Companies who are first-time credit seekers. Employees of these elite companies have stable employment with timely remuneration payments. Loan amounts are issued based on the applicant’s requirements.
Applicants without a CIBIL Score employed in categories C and D of the HDFC Bank Company Category List do not receive the same privileges as those in the upper categories. The approved loan amount and repayment term are limited.
Age Criteria: With age comes experience and stability it is expected that individuals will like to establish themselves with age and will avail suitable credit. If an applicant is over the age of 35 years and has been employed for several years, it is expected that they will use credit at some point, in the form of a Credit Card, auto loan or consumer loan. It will be only in unusual circumstances that there has been no credit usage.
Therefore, if an applicant is over 32 years old and has no Credit Score, HDFC Bank will view a Personal Loan request negatively. However, exceptions are made if the applicant is employed in government services or unusual situations.
Educational and Professional Qualifications: Higher education with a professional degree ensures a well-paying job and a secure future. Prominent companies listed in the HDFC Bank Company Category employ graduates from reputable institutes and offer enhanced packages. HDFC Bank provides the privileges of a Personal Loan to such applicants, even though they have yet to initiate a credit account and do not have a CIBIL history.
Monthly Income: Salaried individuals manage their budgets based on their monthly income. HDFC Bank Offers Personal Loans to salaried individuals earning 30k and above, employed by a company featured in the HDFC Bank Company Category List, without a Credit Score.
High-income applicants with a top-listed company are issued enhanced loan amounts, whereas applicants employed with lower-tier companies are issued restricted loan amounts.
The HDFC Bank entertains Personal Loan requests from applicants without a CIBIL Score who adhere to the other policy requirements. Having been trusted by the Bank and issued a Personal Loan, the onus lies with the customer to ensure timely repayments and complete the repayment over the allotted tenure to create a healthy CIBIL Score!
