A person with no credit history is one who has not availed any credit from any financial Institution. So, they don’t have any credit history and when they apply for loans with any financial institution, so they are classified as New to Credit.
Basically, they are those people who are job freshers or those who just started earning and want to avail some credit for many reasons like travelling, vacation, wedding, emergency fund needs and etc.
Personal Loan Options Availability to people with no credit history
People who are new to credit have very limited options for getting personal loan. Most of the time financial institutions reject them or have criteria which make it difficult to get a persoanl loan.
Banks: Most of the banks have personal loan options for this segment. However, they would insist on high salary and insist that the applicant work ina top notch company with at least1-2 years of job stability.
NBFCs: Most NBFCs offers personal loan for no credit history profiles. But they offer very low loan amounts.
FinTech: Fintechs have found this segment under-served and with huge opportunity and started offering loans to them. Some of them like Dhani, Stashfin, MoneyTap and others offer personal loans to customers with no credit score.