Personal Loans are excellent financing sources that help meet financial emergencies, consolidate existing debts, and fulfil desires without breaking the budget. They are the most popular funding options available in the Indian market today, mainly because they are unsecured loans that do not require any collateral, guarantor, or security in exchange. The lending institutions approve loan applications simply after evaluating and verifying your income sources. However, what if you are looking for a Personal Loan without a salary slip? Find the detailed information here.
Possible Reasons You Don’t Have a Salary Slip
While applying for a Personal Loan, you must provide a few essential documents, including your identity, residence, and income proof. Bank statements and salary slips are the most relevant documents in that case. However, an unemployed or self-employed person possibly cannot have a salary slip. At such times, you may wonder if you can get a loan. This crucial document is also unavailable when you work as a freelancer or are between jobs at present. Many loan apps for salaried also provide Personal Loans for people without salary slips, making funds easily accessible to all.
Ways to Get a Personal Loan Without Salary Slip
Follow these ways to get personal funding without a salary slip:
- Provide Another Income Proof
A salary slip proves stable income. Most loan providers require this document to assure debt repayment. However, business owners, freelancers, contractors, or anyone who is non-salaried may not have a salary slip to show as income proof. Such individuals can use their income certificates, form 16, bank account statements, or ITR as alternate income proofs.
- Maintain a Good CIBIL Score
Most loan apps for salaried check your credit score to measure your creditworthiness. It is a 3-digit number that reflects your repayment history, credit handling skills, and the status of your current debts. Therefore, maintaining a good credit score is more important if you want to get a loan in the absence of a salary slip. Generally, a score above 750 indicates a responsible borrower, attracting bigger loan sanctions, lower interest rates, and longer repayment tenures.
- Borrow a Secured Loan
Pledging an asset as security against the loan gives a sense of confidence to the lender that they will get their repayment on time. Assets like real estate, gold, FDs, mutual funds, etc., are popular collateral options for Personal Loans. However, you must check with your NBFC if they offer secured loans against property. Your loan amount will depend on the asset’s market value and your loan requirement. However, remember that if you miss the EMI payments, the lender may seize your asset to recoup their money. Apply for a secured loan only if you are sure of repayment or can risk the asset.
- Submit the Application with a Co-Applicant
Co-applicant is an individual who shares the responsibility of debt repayment with you. Adding a creditworthy co-applicant to the loan application boosts your chances of getting approval.
- Build a Good Rapport with the Current Lender
Lenders require trust when lending you money. They must feel confident that they will get their loan amount timely. Paying your instalments before the due date, offering an asset as collateral, applying with a co-applicant, maintaining transparency, building good credit history, and maintaining a good relationship with the lenders will always help you·
Opt for a Lender with Flexible Documentation Requirements
Most lending institutions have specific documentation requirements you must fulfil to obtain a Personal Loan. However, if some documents are missing, the lender must be flexible in their requirements and offer you an alternative solution. For instance, if you don’t have a salary slip, they must accept other income proofs to establish credibility and approval loans.
Your creditworthiness is the most crucial factor determining your Personal Loan eligibility. Thus, you must build confidence and trust in your repayment capacity while looking for a Personal Loan without a salary slip. That way, you will project yourself as a responsible borrower and attract loan approval with alternative income proofs.
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