Personal loans can be used for a variety of purposes, including education, marriage, vehicles, medical care, and more. However, the amount of a loan varies from person to person, so it's a good idea to figure out your financial needs before applying for a personal loan based on factors such as credit score, sources of income, existing debt, and more. Personal loans for salaried employees are processed quickly because they have a regular source of income, and it is safer for a lender to lend them the money.
A personal loan is an unsecured debt that covers various types of expenses. No collateral is required and it can be approved quickly. However, since there is no collateral, lenders require your salary slips as proof of income. However, there are several ways to get a personal loan without a salary slip.
The modern lending and financial environment are mature enough to lend money to people with little or no credit history or those with intermittent sources of income. Today, your chances of getting money through a personal loan are much higher. However, receiving funds into your account is subject to eligibility criteria set by your lender. People with regular and stable sources of income, such as salaried employees, can easily get this loan.
Most job seekers and new hires wonder if they can get a personal loan without a salary slip. The answer to this question is very subjective and depends on many factors, including the standards of your credit institution, your creditworthiness, your source of income, and more. However, individuals must meet certain other requirements to demonstrate their ability to pay.
Getting a loan without a salary slip is difficult, but not impossible. A known lending party needs assurance that the borrower can easily repay the loan amount. In the case of personal loans to salaried people, there is a guarantee that the loan will be easily repaid within a given period. Let's see how easy it is to get a personal loan without a salary slip.
• Show any other alternative income proof
Your salary slips indicate your official income proof that reflects your repaying ability. You may get the loan easily in case you are self-employed or working as a contractor with an organization. You can apply for a loan without a salary slip by producing an alternative income proof. These documents are the poof of your income and validate your claim that you earn a good amount stated. Some of the commonly used alternative income proofs include ITR, income certificate, lender account statement, etc. Providing relevant documents that can establish a consistent and stable income source will easily help you get a loan.
• Maintain a good credit score
Your credit score plays an important role in determining whether a lender should give you the loan you need. All lenders check your credit score. Your credit score is a three-digit credit number that represents your credit and repayment history. A credit score of 725 or higher is considered a good score for personal loans. You should always strive to maintain a good credit history by paying your EMI and other financial obligations on time.
• Pledge an asset as collateral
Personal loans are unsecured, so you do not need to provide collateral against the loan amount issued by the lender. However, if you do not have a stable income source and it is difficult to get a personal loan, you can easily get a loan using your assets as collateral. You can use high-value FDs and mutual funds as collateral for your loan if the lender agrees
• Bring in a co-applicant
If you don’t have a good credit history or a consistent income source, you can bring in a co-applicant. Applying jointly with a co-applicant who has a good credit history will increase your chance of obtaining the loan from a lender. This happens because lenders find it safer to give money when they can get their money back through a consistent income source. This will help you to get the required sum that you can use for meeting your urgent financial needs.
• Find flexible eligibility terms
Finding registered financial institutions that don’t have a rigid policy for providing credit can help you get a personal loan without salary slips. Lenders who have simpler personal loan eligibility criteria are more likely to provide the loan amount you need. You can check interest rates based on your credit profile and evaluate whether it's right for you or not. You can find a guarantor in case your lending party accepts and allows guarantors for providing personal loans.
• Pay off existing debts
If you are already in debt, it will be difficult to get a personal loan with or without any salary slip. Paying off your current debt can help reduce your debt-to-income ratio which in turn will allow you to easily get new credit from lenders. Personal loans for salaried individuals can also be denied if their debt-to-income ratio exceeds 35-40%.
When a financial crisis knocks on your door during your testing time, a personal loan can be your best friend. Personal loans are unsecured, the credit amount from these loans can be used at the discretion of the borrower and there are no restrictions on how the funds will be used. This makes instant personal loans an option for those looking for an immediate line of credit to meet their needs.
In India, obtaining a personal loan is at your fingertips, thanks to the digitalised solution offered by numerous financial institutions. With only a few papers and without visiting the lenders office, you can get immediate approval.
Ever wonder how your friend is so relaxed even after taking debt or loans on their shoulders? Or how did your neighbour manage to send his kid abroad for higher studies?
Medical emergencies are something that no one wants to go through. However, the nature of life is such that we have to go through these tough times at some point in life.
The last two years have been very stressful for all of us due to the COVID-19 pandemic. The pandemic ravaged the entire world and resulted in massive loss of lives and the economy. Most of us were forced to stay inside our homes, and working from home became the new normal.