A personal loan is one such credit instrument that helps you to get money instantly and meet any type of financial need. Be it a medical emergency, an urgent travel plan, or a requirement of funds for a ceremony, a personal loan comes in handy in all such cases. The best feature of a personal loan is that you do not need to go through complicated formalities and hefty documentation to get the money disbursed to your bank account.
A personal loan can help you meet immediate financial needs
Both salaried and self-employed individuals can avail of a personal loan. Lenders usually check the loan applicant’s repayment ability while sanctioning any such unsecured loan. This often makes it difficult for individuals to avail a personal loan if they do not have a salary slip. However, there are ways through which you can get a personal loan without salary slip. In this article, we will learn all such possible ways by which you can avail of a personal loan even if you don’t have income proof like a salary slip.
Ways to Avail Personal Loan without Salary Slip
There is no need to worry if you do not have a salary slip. You can still avail of a personal loan without salary slip by following the below-mentioned guide.
Furnish Alternative Income Proof
Salary slip is income proof for salaried employees who receive monthly remuneration/salary from their employers. However, there are other groups of earners as well like self-employed individuals who do not get a salary slip from their employment. If you have to be a self-employed individual, you can also get a personal loan without salary slip. For this, you need to submit 2-3 years of ITR to the lender. Your tax returns will help the lender to assess your average annual income based on which it can evaluate your repayment ability. Therefore, if you are a self-employed individual, make sure you file ITR annually as it serves as your income proof and an alternative to the salary slip.
Good Credit Management History
If you can prove to have good credit discipline, lenders can consider approving a personal loan without salary slip. Your chances of getting a personal loan approved without a salary slip increase if you have a good credit rating. Your credit rating and reliability depend on your credit score, which is a three-digit number ranging between 300-900. If you have a credit score above 750 or 800, you can avail of a personal loan easily. Hence, maintaining a clean and healthy credit history is extremely necessary and a good financial habit. This will help you to increase your credit score and subsequently, your eligibility for a personal loan.
Good Association with the Lender
Some lenders also prefer their regular or past customers while approving a personal loan. If you have a good past association with any lender, you can leverage that in your favor. When the lender is assured that you can repay the loan on time based on your past repayment history, it can consider approving a personal loan without salary slip. So, if you want a personal loan without salary slip, instead of approaching a new lender, apply with the one from whom you have already taken a credit previously.
Add a Co-applicant
If you do not have a salary slip, you can consider adding a co-applicant who can furnish his/her income proof. Adding a co-applicant who has a salary slip helps you to get the loan approved easily. The income proof of the co-applicant assures the bank that the borrower will be able to repay the loan on time. The salary slip of the co-applicant also helps the primary borrower to avail of a personal loan at a lower interest rate.
Apply with an Online Lender
Fortunately, there are a number of online lenders in the market who do not have stringent eligibility requirements for sanctioning personal loans. Some lenders even approve a personal loan without salary slip. You just need to fill in some basic personal information and do the necessary KYC verification. Many lenders also offer an e-KYC feature to their customers to pace up the loan approval process. Once the details are verified, you will be given a loan offer. The loan amount will be disbursed instantly once the offer is accepted and the loan gets sanctioned.
Now that we have learned how to apply for a personal loan without salary slip, let us know the benefits of a personal loan.
Benefits of Applying for Personal Loan without Salary Slip
There are a few exclusive benefits of applying for a personal loan without salary slip.
- You have to go through minimal documentation as you do not need to furnish a salary slip while applying for such a type of personal loan.
- The loan gets approved and the sanctioned amount is disbursed immediately once the details provided in the loan application are verified by the lender. Since the lender does not have to verify your income proof, the loan disbursal takes less time than other cases.
Hence, we have learned how you can get a personal loan even if you do not have a salary slip. However, make sure you have a good credit score, and you can produce all other necessary documents. This will increase the chances of loan approval and help you to avail the best offers.
