Such a kind of loan is also disbursed almost instantly in today’s day and age, courtesy of the advancement in technology that has happened over the years. In a majority of scenarios, the personal loan against cash salary finds its way to the applicant’s bank account within a matter of a few hours.
This article will take its reader through the process of applying for a personal loan on cash salary for those who are thinking about availing it. Read on to know more about it all.
1. Submission of Bank Statements: If the employer of the applicant pays his or her salary in cash, there is a good chance that they might be depositing it somewhere in some form of personal savings account on a monthly basis. Additionally, it is also possible that the applicant might be withdrawing the same on a regular basis in order to pay for things or shop online. Given that a salary slip is rarely issued for an employee that is being paid in cash, they can produce their bank account statements. Generally, lenders request borrowers to submit their bank account statements going 3 months back at the very least. If the executive representing the lender sees the regular deposit of a more or less similar amount on any given day of a particular month, the statements can almost double up as your salary slips.
2. Submission of Tax Returns: If the salary slips are absent, the aspiring borrower can submit their income tax return to the executive representing the lender, which can also work as proof of income. If the borrower has been paying their taxes regularly, the documents in question will help you make a case for your personal loan against cash salary application to get approved.
3. Submission of a Letter from the Employer: Additionally, the borrower can also request their employer to provide proof of the fact that they are getting paid by the said employer. Generally, a statement printed on the company’s letterhead that has the authorised signature of the employer will also similarly help the borrower build their case.
4. Submission of Offer Letter: The aspiring borrower can also choose to provide an offer letter that has been issued by the employer in question. The figure that has been stated on the offer letter tends to act as proof of income too at times, in the event that one or many of the documents mentioned above fail to do so. However, it must be noted that it does not necessarily act as the same as it is not a definite proof of a stable income. Instead, an offer letter is only proof of the fact that an employer is willing to pay the borrower a certain amount of money every month should they choose to join them at their office. Hence, it is always advisable for an individual to produce salary vouchers in order to prove that they actually earn enough money every month for sustaining a lifestyle as well as paying off the personal loan on cash salary. Obtaining the voucher in question should not pose a problem since if an employee is paid in cash, they have to sign a particular voucher every time it happens so that the relevant officials can maintain a record of the same for internal accounting purposes.
5. Avail a Loan Against Investments: If the points mentioned above do not work for the salaried person, a personal loan on cash salary can always be availed by the borrower, but against their investments. This would imply that the assets in question will have to be pledged. The acceptable list of assets include names such as the likes of gold, mutual funds, fixed deposits and other securities, which can be offered as collateral. Lenders tend to happily accept them as they tend to appreciate in value, but they only give a nod to a loan against those properties that satisfy a specific loan to value ratio.
If you would like to learn more about personal loan against cash salary or any other forms of credit, they can always do so on Finserv MARKETS.