Personal Loan without Salary Slip
Personal loans are issued against a borrower’s income. Hence, income certificates, such as salary slips, play a crucial role in loan approval. That said, salary slips are just one of the many forms of income proof. Borrowers who might not be able to produce them, say, self-employed individuals, freelancers, and others, can also get the required financial help via personal loans without salary slips.
The important criterion is to showcase a steady source of income and establish high credibility. This helps gain a lender's trust and confidence. Here, we discuss the various ways using which you can do exactly that, even without having a salary slip.
How to Get a Personal Loan Without a Salary Slip
Keeping the basic principle of showcasing a steady income and establishing financial credibility in mind, the following ways can help secure an instant loan without salary slips:
Use Other Sources of Income
If you do not have salary slips, use other income sources as your income proofs. Self-employed borrowers can produce IT returns and business statements from recent years, while salaried individuals can furnish their employment letters, bank statements and ITR to showcase their earnings. Further, borrowers can also showcase any additional income (such as rental earnings, etc.) to strengthen their financial profile.
Maintaining Excellent CIBIL Scores
Other than income, banks keep a close eye on a borrower’s CIBIL scores. A high CIBIL score indicates greater reliability and better repayment potential to the lender, and thus, can compensate for a lack of formal income proofs. Usually, a score above 800 is considered to be very strong. Borrowers can follow simple ways like timely repaying credit card bills and maintaining a healthy credit mix to improve their credit ratings over time.
Banks also accept joint personal loan applications. Borrowers without a salary slip can apply jointly with their spouse, parent or any other reliable co-borrower and use their steady income to gain the bank’s confidence.
Apply for a Secured Loan
Personal loans are unsecured loans which do not require collateral. However, borrowers can mortgage high-value securities such as properties, mutual funds and others to gain loans without salary slips.
Tips to Avail a Personal Loan Without Salary Slip
Following these simple tips can help gain the best personal loan without a salary slip:
- Maintain high CIBIL scores at all times
- Approach an NBFC for flexible eligibility criteria
- Other documents like ID proof, Address proof, etc. still need to be submitted
Features of Personal Loans Without Salary Slips
Loans without security and salary slips come with the following features:
- Multipurpose Loans: Loan amounts can be used for a wide range of purposes, like medical expenses, family functions etc., without any restrictions.
- Higher Interest Rates: Lenders may charge higher interest rates on these loans due to the perceived higher risk associated with limited income proof.
- Shorter Loan Tenures: Loans without salary slips are available for shorter tenures as compared to regular personal loans offered against all the necessary income proofs.
Eligibility Criteria for an Instant Loan Without a Salary Slip?
The following candidates are eligible for personal loans without salary certificates:
- Eligible Applicants: Salaried/ Self-Employed individuals
- Age Limit: 21-65 years
- Nationality: Indian
- High CIBIL score
- Other criteria as specified by the bank
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- Employee Provident Fund
- Systematic Investment Plan
- Fixed Deposit
- Mutual Funds
- Recurring Deposit
- Systematic Investment Plan (SIP)
- Employees Provident Fund (EPF)
- Public Provident Fund (PPF)
- Voluntary Provident Fund (VPF)
- National Pension Scheme (NPS)
- National Savings Certificate (NSC)
- Senior Citizen Saving Scheme
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Frequently Asked Questions (FAQs)
What is an instant personal loan without a salary slip?
It is a personal loan which is issued against various income certificates, other than the salary slip. These are useful for self-employed borrowers and others who may not be able to furnish payslips.
How much can I borrow using a loan without a salary slip?
Maximum personal loan amount varies from one bank to another. However, maintaining high CIBIL scores can help individuals gain higher loan amounts.
What are the interest rates for instant Personal loans without a salary certificate?
Although these usually start at 9-10% p.a., different banks charge different interest rates on personal loans.
How long does it take to get a loan without a salary slip and bank statement?
It depends on the credibility of one’s application. Generally, personal loans get approved within a few hours to a few business days.