Smart Approach: Personal Loan Without Bank Statements

It’s definitely possible to get a Personal Loan without bank statements by submitting other documentation as proof of income instead. Alongside, choosing the right lender and ensuring you meet other eligibility requirements increases your chances of approval. Read on to understand exactly how you can get a Personal Loan without submitting a bank statement.

Can You Get a Personal Loan Without a Bank Statement?

Yes, you can undoubtedly obtain approval for loan applications without submitting bank statements, but it’s essential to understand what this actually means. All lenders, according to Reserve Bank of India (RBI) regulations, must evaluate a borrower’s financial health to confirm that they are capable of repaying the loan. Part of this evaluation is assessing the applicant’s income to establish repayment capacity.

The bank statements serve as primary proof of income. Naturally, “without a bank statement” does not imply “without any proof of income”, and you’ll have to submit alternate documents instead.

Today’s lenders, particularly Non-Banking Financial Companies (NBFCs) and online FinTech platforms, effectively verify an applicant through multiple documentation options. This helps your case, provided your income and other criteria are enough for your application.

Also Read: 10 Common Personal Loan Application Mistakes to Avoid

How to Get a Personal Loan Without Bank Statements

Securing a Personal Loan without bank statements involves a few straightforward steps:

Choose a Digital-First Lender

Your starting point is locating the appropriate lender. Avoid traditional banks and institutions that adhere to traditional documentation procedures and require specific types of documents as proof. Digital NBFCs and Fintech firms are much more likely to have paperless application processes that leverage alternative verification methods.

Provide Alternative Proof of Income

Since you’re skipping the bank statement, you’ll need to provide another credible document to prove your income. The most common and accepted alternatives include:

• Latest Salary Slips: If you’re a salaried individual, your most recent salary slips (typically 2-3 months) are excellent proof of a steady income. These documents clearly show your monthly earnings and deductions.
• Income Tax Returns (ITR): For both salaried and self-employed individuals, a recent ITR is a strong document. It provides the lender with a complete picture of your year-round income as well as financial prudence.
• Form 16: This is a document provided by your employer that lists your income and the tax deducted at source (TDS). It serves as strong proof of your income and employment for the year.

Also Read: A Quick Guide to Personal Loan Eligibility Assessment

Tips to Get Approval for a Personal Loan Without Bank Statements

• Get a Guarantor or Cosigner: Adding a co-applicant or a guarantor can significantly improve your chances of loan approval. The presence of a co-signer substantially reduces the risk to the lender, thereby enhancing your approval chances.
• Pledge an Asset: Personal Loans are typically unsecured in nature. However, some lenders may be willing to convert it to a secured loan if you have collateral to offer.
• Make Immediate Positive Changes: If you have a low score, you need to increase it to improve your approval chances. Immediate action, like repaying your debt and increasing your DTI ratio by requesting a higher credit limit, can increase your score over 1 to 3 months.

Eligibility for Personal Loan Without Bank Statement

While the documentation process may be different, the core eligibility criteria for a Personal Loan remain essentially the same. Lenders need to be confident in your ability to repay the loan, and meeting these criteria will help bolster that confidence:

• A Good Credit Score: A CIBIL score of 750 and above is usually desirable. It indicates a good credit history and behaviour, which denotes you as a low-risk borrower and can result in favourable terms. You are likely to be approved with a higher CIBIL even if you do not submit a bank statement.
• Stable Employment: Lenders prefer candidates with stable jobs. You must be a salaried professional with a solid organisation or a self-employed person with a stable business vintage.
• Minimum Monthly Pay: All lenders have a minimum income criterion, which is typically in the range of ₹25,000 to ₹30,000 per month, based on your city of residence and the lender’s policy.

Also Read: Essential Credit Score Monitoring Tips for Better Financial Health

To Conclude

Getting a Personal Loan without a bank statement is not impossible. As long as you have other reliable documents, along with strong eligibility, you should get a Personal Loan without any hassle.

Choosing Poonawalla Fincorp for your Personal Loan needs gives you an entirely paperless process with minimal documentation requirements. Apply today!

Frequently Asked Questions

Can I get an instant Personal Loan without a bank statement?

Yes, many digital lenders and NBFCs offer instant Personal Loans without requiring you to upload physical bank statements. Provide alternate proof of income, such as your ITR, Form 16, or salary slips, to complete your application.

Is it safe to provide my net banking details for a loan application?

Yes, it is safe when you are applying with a reputable lender. They use secure, encrypted portals with read-only access to verify your financial information. Your login credentials are not stored, and no transactions can be made from your account.

Can I get a Personal Loan with just my Aadhaar and PAN card?

Yes, some lenders do offer loans just on your Aadhaar and PAN card, which are used for your KYC verification. However, ensure you check with them to confirm that there are no additional documentation requirements before you apply.

How can a self-employed person get a Personal Loan without a bank statement?

A self-employed individual can get a Personal Loan without submitting bank statements by providing their latest Income Tax Returns (ITR) for the last two years. The ITR serves as a comprehensive record of their income and financial standing.

Do all banks ask for a bank statement for a Personal Loan?

Most traditional banks still require physical or PDF bank statements as part of their standard documentation process. However, many modern NBFCs and fintech lenders have adopted paperless methods and accept other documents as alternatives.

What is the minimum CIBIL score required for a Personal Loan without a bank statement?

While policies vary between lenders, a CIBIL score of 750 or above is generally considered good. A higher score demonstrates creditworthiness and may increase your chances of getting approved for a loan with flexible documentation requirements.

Which app gives a loan without a bank statement?

Many financial apps from registered NBFCs and fintech platforms offer loans without requiring physical bank statements. Lenders like Poonawalla Fincorp offer a digital platform that facilitates an entirely online loan application process, utilising net banking verification instead of statement uploads.