How can anyone get a personal loan without a salary slip?
How can anyone get a personal loan without a salary slip?
A personal loan is a sum of money that you can borrow for various purposes. A personal loan might be used to restructure debt, pay for home upgrades, or organize a dream wedding, for example. Banks, credit unions, and internet lenders all provide personal loans. You must repay the money you borrow over time, usually with interest. Personal loans may be subject to fees from some lenders.
Personal loans are available as secured or unsecured loans. As a condition of borrowing, a secured personal loan requires some form of collateral. For example, you may use monetary assets like a savings account or a certificate of deposit (CD) to obtain a personal loan or a physical asset like your car or home to secure a personal loan. If you default on the loan, the lender may be able to seize your collateral to cover the obligation.
To obtain a personal loan, you must submit an application to a lender. A bank, credit union, or online personal loan lender can all be used. In most cases, you’d start by filling out an application. It is reviewed by the lender, who then determines whether to accept or refuse it. If you’re authorized, you’ll be given loan conditions to accept or refuse. The next step is to complete your loan papers if you agree to them.
After that, the lender will finance the loan, which means you will receive the funds. These may arrive in the form of a direct transfer into your bank account or a cheque, depending on the lender. After the loan has been funded, you are free to use the funds as you see fit. After then, you must begin repaying the loan according to the conditions of your loan arrangement.
Here is a list of essential documents you will need for your personal loan –
Evidence of identity (copy of passport, voter ID card, driver’s license, or Aadhaar)
Evidence of address (copy of passport, voter ID card, driver’s license, or Aadhaar)
Bank statement over the last three months (Passbook of previous 6 months)
Two most recent salary slips, along with Form 16.
Obviously, you have all the identity proof, address evidence, and the bank statement but some people might miss out on the salary slips.
Here is what you can do if you don’t have salary slips –
- A proof of income
As a self-employed person, you are likely to operate on a contract basis and may not receive a monthly salary. You may still show proof of your income, though. Other financial records such as certifications, bank statements, Income Tax Returns (ITR), and Form 16 are available. These papers can assist lenders to verify your income and ensure that you will be able to repay the loan.
- A good credit score
Lenders analyze your credit history in addition to your sources of income when determining your creditworthiness and prior loan payback behavior. Consequently, whether you are self-employed or have recently lost a job, attempt to maintain a strong credit score. A lender would feel more comfortable authorizing your loan if your CIBIL score is good, since it means you will manage your loan EMIs appropriately. A credit score of 600-750 is considered good and can help you obtain financial assistance more readily.
- Provide them with collateral
Check if the lender offers asset-backed, secured loans as another option for getting a Personal Loan without salary slips. You can use assets such as high-value Fixed Deposits, mutual fund units, gold jewelry, or anything else to demonstrate your capacity to repay your loan. If you pledge your assets, your Personal Loan application may be granted without the need for income-based papers, and you may even qualify for a cheaper interest rate.
- Apply for a joint loan
Applying for a Personal Loan with a creditworthy co-applicant might help you get a Personal Loan without having to show your pay stubs. The co-applicant can supply the requisite income verification papers as well as a solid credit score, boosting the lender’s trust in the loan’s approval. In this manner, you’ll be able to receive the money you need to cover your bills.
So here are 4 ways in which you can get a personal loan even when you don’t have salary slips.
