"No credit history, no loan" is something many first-time borrowers hear. The rules say otherwise, though a lender can still say no for other reasons. Here is what changed, and how to give yourself the best chance.
What RBI and the government have said
- No minimum score from RBI. In August 2025 the Minister of State for Finance told the Lok Sabha that RBI has not prescribed any minimum credit score for loans.
- No rejection only for "no history". RBI's Master Direction on credit information reporting of 6 January 2025 asks lenders not to reject a first-time borrower's application just because they have no credit history.
- In December 2025 the government repeated in Parliament that a credit score is not a compulsory requirement for small loans.
What this does not mean
It does not mean every first-time applicant gets a loan. Lenders still follow their own board-approved credit policies and check your income, job or business, bank statements and existing debts. If you do have a history, they will look at it, including any defaults or settlements. "No history" is no longer a reason on its own; a weak repayment capacity still is.
No history vs a low score
| No credit history | A low score | |
|---|---|---|
| What the bureau shows | No score yet (CIBIL shows -1 or NA/NH) | A score built from your past loans and cards |
| What it tells a lender | Nothing yet, good or bad | How you repaid before |
| What helps | Proof of steady income and banking | Time and on-time repayments (how to improve your score) |
How to get your first loan
- Show your income clearly. Salary slips and a bank account where the salary lands, or for a business, 6–12 months of statements.
- Share your bank statements digitally. The RBI-regulated Account Aggregator framework gives lenders a verified view of your cash flow, which matters more when the bureau has little to say.
- Start with a modest amount and an EMI you can comfortably pay; most lenders look for total EMIs within about half of take-home income (how much EMI you can afford).
- Add a co-applicant with a good record if a lender asks (co-applicant vs guarantor).
- Check your report anyway. You can get one free full credit report a year from each credit bureau; make sure nothing is wrongly reported in your name.
- Apply once, not everywhere. Many applications in a short time can make lenders cautious.
Build a history from the first loan
Your first loan starts your record. Pay every EMI on time: lenders now report to credit bureaus every fortnight, so on-time payments show up quickly. Read more in CIBIL score for a personal loan.
Oxon Fintech's lending partners consider new-to-credit applicants on their income and banking; whether you get an offer, and on what terms, is each lender's decision.
This guide is general information, not financial advice. Interest rates, fees, eligibility and other terms are set by each lender and can change; the figures in examples are illustrative only. Oxon Fintech is a loan facilitation platform, not a lender — loans are sanctioned and disbursed by our lending partners.