Will taking a loan without a credit score impact my credit history?

Taking a loan when you have no credit score can impact your credit history positively. It can be a good way to start building your credit history in India. If you repay the loan on time, your repayment behaviour is reported to credit bureaus and this helps you establish and gradually improve your credit score over time.

• However, missing payments or defaulting on a loan, even if you started with no credit score, can have the opposite effect. It will negatively impact your credit score and make it harder to borrow in the future.
• RBI requires lenders to update credit bureau records every 15 days. This means your timely repayments or any missed payments are reflected much faster in your credit report, giving you a more accurate and current credit profile. Responsible borrowing builds trust with lenders and opens up future opportunities.
• Before taking a loan without a credit score, make sure you can manage the repayments comfortably.