Personal loans can be used for many different things, such as weddings, vehicles, medical expenses, and more. The size of a loan varies from borrower to borrower, so it’s wise to assess your financial requirements before applying for a personal loan based on things like your credit score, your sources of income, your level of debt, and more. Because salaried workers have a steady source of income and are therefore a safer bet for lenders to lend to, personal loans to them are handled swiftly.
A Personal Loan is an unsecured debt that covers various types of expenses. No collateral is required, and it can be approved quickly. However, since there is no collateral, lenders require your salary slips as proof of income. However, there are several ways to get a Personal Loan without income proof.
Can Anyone Get A Personal Loan Easily?
The modern lending and financial environment are mature enough to lend money to people with little or no credit history or those with intermittent sources of income. Today, your chances of getting money through a Personal Loan on salary slips are much higher. However, receiving funds into your account is subject to eligibility criteria set by your lender. People with regular and stable sources of income, such as salaried employees, can easily get this loan.
Most job seekers and new hires wonder if they can get a Personal Loan without a bank statement or a salary slip. The answer to this question is very subjective and depends on many factors, including the standards of your credit institution, your creditworthiness, your source of income, and more.
Eligibility For A Personal Loan Without Salary Slip
A salary slip is a type of document that is required for checking the repayment capability of the borrower before lending a loan. Eligibility for a Personal Loan without a salary slip varies between lenders as per their policies and the specific circumstances of the borrower. When a borrower cannot provide a salary slip, they are asked to provide substitute documents that will show their repayment capability. However, some financial institutions may consider details like your ITR documents for the past few years, lender account statement, income certificate, etc. Providing the documents which show your repayment capability can make it easier to get a loan without a salary slip.
Tips to Get A Personal Loan Without A Salary Slip
Getting a loan without a salary slip, or in other words, a loan without income proof is difficult, but not impossible. A known lending party needs assurance that the borrower can easily repay the loan amount. In the case of Personal Loans to salaried people, there is a guarantee that the loan will be easily repaid within a given period. Let’s see how easy it is to get a Personal Loan without a salary slip.
Show Any Other Alternative Income Proof
Your salary slips indicate your official income proof that reflects your repaying ability. You can apply for a loan without a salary slip by producing an alternative income proof. These documents are the proof of your income and validate your claim that you earn a good amount stated. Some of the commonly used alternative income proofs include ITR, income certificate, lender account statement, etc. Providing relevant documents that can establish a consistent and stable income source will easily help you get a loan as compared to applying for a Personal Loan without documents.
Tips to Qualify for Personal Loan for Salaried Employees in India
Maintain A Good Credit Score
Your credit score plays an important role in determining whether a lender should give you the loan you need. All lenders check your credit score. Your credit score is a three-digit credit number that represents your credit and repayment history. A credit score of 750 or higher is considered a good score for Personal Loans. You should always strive to maintain a good credit history by paying your EMI and other financial obligations on time.
Pledge An Asset As Collateral
Personal Loans are unsecured, so you do not need to provide collateral against the loan amount issued by the lender. However, if you do not have a stable income source and it is difficult to get a Personal Loan, you can easily get a loan using your assets as collateral. You can use high-value FDs and mutual funds as collateral for your loan if the lender agrees.
Bring In A Co-Applicant
If you don’t have a good credit history or a consistent income source, you can bring in a co-applicant. Applying jointly with a co-applicant who has a good credit history will increase your chance of obtaining the loan from a lender. This happens because lenders find it safer to give money when they can get their money back through a consistent income source. This will help you to get the required sum that you can use for meeting your urgent financial needs.
Find Flexible Eligibility Terms
Finding registered financial institutions that don’t have a rigid policy for providing credit can help you get a Personal Loan without salary slips. Lenders who have simpler Personal Loan eligibility criteria are more likely to provide the loan amount you need. You can check interest rates based on your credit profile and evaluate whether it’s right for you or not. You can find a guarantor in case your lending party accepts and allows guarantors for providing Personal Loans.
Pay Off Existing Debts
If you are already in debt, it will be difficult to get a Personal Loan with or without any salary slip. Paying off your current debt can help reduce your debt-to-income ratio which in turn will allow you to easily get new credit from lenders. Personal loans for salaried individuals can also be denied if their debt-to-income ratio exceeds 35-40%.
Required Documents for Personal Loan Without Salary Slip
Getting a Personal Loan without a salary slip will be a tough process, but it is not impossible. When you are applying for a loan, you are required to provide a salary slip as proof that you can repay the borrowed amount.
If you are not able to provide a salary slip, you can provide alternative documents like:
Bank Statement
Bank statements for the past few months can help the lender to know your cash flow and repayment capability.
Income Tax Return (ITR)
Income tax return details from previous years are widely accepted. ITR documents can demonstrate your income and financial stability.
Employment Letter
An employment letter can act as a substitute for getting a loan without a salary slip. This document contains employment details like details of salary, designation, and employment duration.
Alternative Income Proof
If you have another source of income, provide the relevant documents which can verify that you can repay the borrowed money with interest.
So, in case you want to apply for a loan without a salary slip, you can use above mentioned documents as an alternative.
To Conclude
We hope this article helped you answer your question about how to get Personal Loan without documents, such as salary slips, bank statements etc. When a financial crisis knocks on your door during your testing time, a Personal Loan can be your best friend. Personal Loans are unsecured, the credit amount from these loans can be used at the discretion of the borrower and there are no restrictions on how the funds will be used. This makes instant Personal Loans an option for those looking for an immediate line of credit to meet their needs.
Read More: Need A Personal Loan With a Low CIBIL Score? Here’s How To Avail One
