A personal loan can be utilized for various purposes involving education, a vehicle, a wedding, medical care, and others. However, the loan amount differs from one individual to another, so it is a great idea to figure out your financial requirements before placing an application for a personal loan depending on parameters like credit score, income sources, existing debt, and others. Personal loan for salaried is processed instantly because they have a regular income source, and it is safer for the lender to lend them funds.
A personal loan owing to its unsecured nature, covers different kinds of expenditures. Zero collateral is needed, and it can even be approved instantly. However, as there’s zero collateral or security requirement, lenders ensure to check your salary slips to know your income. However, in case you want to avail of a personal loan without salary slip, you still can get the loan without any proof of income.
Can you get a personal loan simply?
The modern financial and lending environment are highly mature enough to provide funds to you with little or zero credit history or those with an intermittent income source. Today, your chances of availing money via personal loan on salary slips are way higher. However, getting funds in your bank account is subject to the eligibility parameter fixed by the lender. Individuals with stable and regular income sources like salaried can simply get a personal loan through personal loan apps.
Most new hires and job seekers wonder if they can avail of a personal loan without a salary slip or bank statement. The answer to this is subjective and based on various parameters involving the standards of the financial institution, your credibility, credit score, and others.
Major tips to avail of a personal loan without salary slip
Availing of a personal loan without a salary slip may be tough but not impossible. A known lending party requires assurance that you can simply repay the loan proceeds with ease. In the scenario of personal loans to the salaried, there is an assurance that the personal loan will be repaid simply in the given period. Let’s know how simple it is to avail of a personal loan without salary slip.
Display any other alternative proof of income
Your salary slip comes across as your official proof of income that shows your repayment capacity. You can place an application for a personal loan without any salary slip by showing an alternative proof of income. Such documents act as your income proof and validate all your claims that you get the income as stated in the loan application form. A few of the commonly used alternative proof of income involves income tax returns (ITR), lender account statement, income certificate, etc. Showing all the relevant documents that establish a stable and constant flow of income can simply assist you in getting the loan than applying for a personal loan without any documents.
Maintain a strong credit score
Your credit profile plays a major role in deciding whether the bank lender must provide you with the loan you require. All lenders tend to check your credit profile to know your credit score, your past repayment record, the number of your credit enquiries, etc. A credit score is nothing but a 3-digit credit number that shows your repayment and credit history. A credit score equaling 750 and above is looked upon as a good credit score for availing of a personal loan. You must always strive and maintain a strong credit history by repaying your loan EMIs and your other financial commitments and obligations by the due date.
Pledge an asset as security or collateral
A personal loan is an unsecured credit option, so you do not require providing any security or collateral against the issued loan proceeds. However, if you hold no stable source of income and consider it tough to avail of a personal loan, you can simply get it using your assets as security or collateral. You can use your high-value fixed deposits and mutual funds, and savings in a provident fund account as collateral for your personal loan if a lender agrees on this.
Add in your co-applicant
If you do not have a strong credit history or hold a constant source of income, you can add in a co-applicant. Applying for a personal loan jointly with a co-applicant with a strong credit history will enhance your chances of availing loan from a lender. This specific thing happens because lenders think it to be safer to provide you with money as your co-applicant has a constant flow of income through which you can repay your loan EMI. This assists you in getting the needed sum that you can effectively use for mitigating your immediate financial requirements.
Figure out flexible loan eligibility terms
Finding a registered lending institution that does not have a stringent and rigid policy for offering you credit can assist you in getting a personal loan with any salary slip. Bank lenders with simpler eligibility parameters on personal loans are more likely to offer the loan proceeds you require. You can check the rate of interest depending on your credit score and repayment capacity and assess whether it is correct for you or not. You can get a guarantor in the case your lending party agrees to add in a guarantor that provides you with a personal loan.
Pay off your existing dues.
In case you are already facing debt, it may be tough to get a personal loan with or without a salary slip. Paying off the current debt can assist lower your DTI (debt to income) ratio, which in turn permits you to simply get new credit from lenders. Personal loans for salaried can even be denied if your DTI (debt to income ratio) surpasses 35 – 40 per cent.
When any financial crisis or requirement knocks at your door, or you witness any testing time, then a personal loan can come across as your best pal. A personal loan is an unsecured loan option, meaning the credit proceeds from such loans can be utilized at your discretion, and there’s zero restriction on how you can use the provided loan funds. Also, note that to meet your instant fund requirements, a personal loan is also available in the preapproved form.