What are the repayment terms for a loan without a credit score?

Repayment terms for loans taken without a credit score in India are usually stricter than those offered to borrowers with established credit histories. Lenders want to reduce their risk, so they often set shorter loan tenures and start with higher interest rates. The loan amount you are approved for may also be lower than what is available to someone with a good credit score. To further protect themselves, lenders commonly require collateral or a guarantor. This acts as security in case you are unable to repay the loan.

You will likely need to provide extra documentation like proof of income, employment stability and recent bank statements, to show your ability to repay. Flexible repayment features, like part-prepayment or EMI holidays, may be limited or not available at all. Missing payments on such loans can have a much bigger negative impact on your future credit profile, making it harder to access credit later. Being well informed helps you manage your loan responsibly and build a positive credit history over time.