Get Lowest Personal Loan Interest Rate ✓ Loan up to 50 Lakhs ✓ Quick Disbursal ✓ Minimum Documentation! Check Eligibility

Personal loans are a great way to get funds easily and finance your short to mid-term goals without burning through your savings. Banks, NBFCs, and other lending institutions have simplified the process of getting quick loans, and now require minimal documentation. In some cases, it only involves basic KYC, and you may even get a personal loan without income proof. 

However, this benefit depends on the lender and your relationship with them. If you prove yourself to be an eligible applicant with a low risk of default, lenders may approve your personal loan without income proof. If you are a salaried employee, your salary slip is the easiest income proof that you can furnish. However, if you are self-employed, it might be difficult to produce a salary slip.

Read on to learn more about how to avail a personal loan without salary slip or bank statement.

How You can Get Instant Personal Loan without Income Proof or Salary Slip

  • Apply with a Guarantor or a Co-Borrower

Lenders ask for income proof to assess your repayment ability and, as such, may be hesitant to approve your application if you can’t furnish income proof. This is because a lack of income proof indicates that you could be a high-risk borrower.

However, when you apply with a guarantor or a co-borrower, the lender has some assurance of repayment. This is because you and the co-borrower share the responsibility of repayment. Moreover, both profiles are considered, so ensure that you pick a creditworthy co-borrower.

  • Pick a Lender Who You Have a Healthy Relationship With

You are at an advantage if you have already transacted with a lender in the past. This is because they already have your information on file. Moreover, if you have availed a loan in the past, the lender will have assessed your repayment ability too. This makes it easier to get a new personal loan without income proof.

As a result, it is smart to check with your current lender to avail a new loan without documents. You can check this by contacting the lender’s customer support or visiting the branch.

  • Maintain Good Relationships with Lenders

When you apply with lenders you have already transacted with, they have the documents and other information needed to assess your creditworthiness. Previous transactions include a current account, savings account, or even closed credit account.

Ensure that you have sufficient balance in your accounts and repay your credit on time and in full. Doing this will help build your creditworthiness with the lender and make lenders less hesitant to approve your application, even without income proof.

  • Maintain an Excellent Credit Score

Your credit score plays a crucial role in helping you qualify for affordable and instant credit. This 3-digit score is calculated based on various factors, and lenders check this to get an idea about your repayment ability. Generally, you need to have a score of at least 750 to make the cut.

You can maintain this score by paying attention to the factors that affect the score. These factors are your debt-to-income ratio, credit utilisation ratio, repayment history, and the credit mix.

  • Look For Lenders with Simple Eligibility Terms

Your loan terms are an important factor in getting approval from a lender. If a lender has simple personal loan eligibility criteria, they may approve your loan without income proof. To check the lender’s eligibility, you can visit their website, a third-party website, or by contacting their customer support.

Adjusting your loan terms can also help you get approval with minimal documentation. If your repayment terms assure the lender that you can handle payments without any risk of default, you may get a personal loan without income proof.

  • Present an Alternate Income Proof

If you are self-employed or a freelancer, you can produce an alternate document such as an ITR certificate or bank account statement as a proof of income. Most banks and NBFCs would accept these documents as proof of income in place of a salary slip.

  • Submit Form-16

If you are a salaried employee, you get a Form 16 from your employer as proof of tax deduction from your salary. Form 16, in most cases, is also accepted as proof of income. So, if for some reason, you are unable to furnish your salary slips, you can submit the latest Form 16 to the lender as proof of income.

  • Check Pre-approved Offers

Pre-approved offers are those extended to you based on your current finance standing. Lenders assess your profile and pre-approve a loan offer. This means that instead of you filling out an application form and applying, all you have to do is assess the terms on offer and authorise disbursal.

Since the lender has already assessed your credit profile, they are aware of your repayment ability and have the necessary information to process the loan. This method is one of the easier ways to get a personal loan without income proof.  

Opting for a pre-approved loan offer is an even quicker way to get access to the funds you need. This is because the processing time is lesser than that of a regular personal loan. You can check your pre-approved by visiting the lender’s website or a digital marketplace and filling out a simple form. After submitting the form, you will get information on whether you have a pre-approved offer or not.

  • Offer Up an Asset as Collateral

Pledging collateral can help you get a personal loan without income proof. This is because you are pledging an asset to the lender until you clear all payments. In case of default, the lender can seize the asset to recover the loan amount. Since their risk is reduced, getting a personal loan with minimal documentation is possible.

Here, collateral isn’t restricted to assets such as gold or other precious ornaments. You can even use your fixed deposit or mutual funds as collateral to avail a personal loan. In fact, a majority of FD issuers offer easy loans against a fixed deposit. 

With these above points in mind, the best way to get a personal loan without income proof is to select a lender with the relaxed criteria. There are lenders who offer such loans but before finalising an offer, check the terms and conditions. Doing this helps avoid being blindsided at the time of repayment.

FAQs on Personal Loan Without Income Proof

How to get a personal loan without salary slips and ITR?

The easiest option is to avail a pre-approved loan offer from a leading lender, but you can also opt to get a secured personal loan. With this option, you will be required to pledge an asset as collateral but are more likely to get a personal loan without income proof.

Do I need to submit bank statements for a personal loan?

If you are a salaried applicant, you can get a personal loan without submitting your bank statements. However, as a self-employed applicant, it may not be possible to get a loan without furnishing bank statements.

How to Get a Personal Loan without a PAN Card?

For most personal loans, it is mandatory to submit your PAN along with your loan application. However, some lenders may allow you to avail personal loans of small amounts, i.e. less than ₹50,000 without asking you to submit your PAN. If you have misplaced your PAN card, you can use this facility to get personal loans of small amounts.

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