What if I have no credit history?
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No credit history (called 'credit invisible') affects 20-30% of Indian adults. Challenges: No CIBIL score to evaluate, banks see as risky, limited loan options. Building credit from scratch: (1) Get a secured credit card - FD-backed from your bank (₹10,000-50,000 limit), use 20-30% monthly and pay full amount; (2) Become authorized user on family member's credit card; (3) Small personal loan from your salary account bank - they have your banking history; (4) Digital lenders with alternate data - Amazon Pay Later, Paytm Postpaid use shopping/payment history; (5) Credit builder loans from fintech apps; (6) Joint loan with established co-borrower. For immediate personal loan with no history: Approach your salary account bank (6+ months relationship), provide extensive documentation (payslips, bank statements, employer letter), accept higher interest rates (16-20%), opt for smaller amounts (₹1-3 lakhs), add a co-borrower/guarantor. Building basic credit takes 6-12 months.
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If you have no credit history, start by getting a secured credit card against fixed deposit, become an authorized user on a family member's card, or try digital payment apps that build credit. For a personal loan, approach your salary bank with at least 6 months of banking history, or add a co-borrower with good credit.
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