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. Read on to learn more about how to avail a personal loan without salary slip or bank statement.
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.
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.
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.
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.
A few tips to build and maintain an excellent score are:
Repay your debt completely and on time
Do not apply for new credit frequently
Have a mix of both secured and unsecured credit.
Maintain a low debt-to-income ratio
Utilise only up to 30% of your total assigned credit limit.
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.
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.
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.
Moreover, you should compare offers and avail personalised deals. To find loan options, visit Bajaj Markets and get affordable personal loans from leading lenders in the market. The application process is quick, hassle-free, and requires minimum documentation.
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.
No, you are required to submit KYC documentation to avail a loan. Documentation such as your Aadhaar card or Driver’s Licence will serve as ID proof. Your PAN card is another option, and in case you cannot submit your PAN card, availing a personal loan for an amount higher than ₹50,000 may be challenging.
If you are a self-employed applicant, you can furnish your bank statements, ITR, past business financial documents, and other documents. You can get the complete document list by visiting the lender’s website or branch.
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.