How to Get a Personal Loan without Income Proof?
When in sudden need for credit, both salaried and self-employed professionals can apply for a personal loan. However, it can be difficult to get an instant personal loan without income proof. Financial institutions usually require borrowers to show that they have credit discipline and funds enough to arrange for repayment. Those who are salaried or self-employed can apply for personal loans, but lenders require showing some income proofs such as salary slips, employer affidavits, income tax returns, bank statements, Form-16, etc. Lenders verify the monthly income flow and the sources of income claimed. Read on to know how you can apply for a personal loan without income proof.
Tips to Get a Personal Loan Without Income Proof
If you are unable to submit your salary slips or Form 16, then the following tips will help you get a personal loan without income proof:
1. Your Credit History
A strong credit history becomes very important for a successful application of cash loan without income proof. A credit score of 750 or more may be needed.
If your credit history is not great, then you can improve it by using credit cards, repaying EMIs on time, and maintaining a low credit utilisation ratio. Always repay credit card bills on time.
2. Build A Trust-worthy Identity
The trust factor plays an important role while getting any form of credit from a lender. When the lender trusts you as a responsible borrower, you can easily avail of a personal loan without income proof. So, always maintain a healthy credit utilisation ratio, repay your EMIs on time and maintain a good relationship with your lender.
3. Provide Alternative Income Proof
It can be difficult to show regular income proof, especially as a self-employed individual. If possible, you can provide bank statements, proof of rental income or tax returns. Showing regular invoicing or proof of family member’s income or even FD receipts can be acceptable.
4. Applying With A Co-Applicant
It is a good option to have a co-applicant while applying for a personal loan. A co-applicant with a steady income and a good credit score will help you get loans at better terms. However, remember that if you default, the onus will be on the co-applicant to repay your loan. So, apply responsibly while keeping this factor in mind.
5. Going With A Lender With Simple Eligibility Criteria
The process of availing a personal loan must be made easy if you feel you are eligible. Hence, choosing a lender with not so complicated terms & conditions, and eligibility criteria will make the process hassle-free.
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Steps to Apply for Personal Loan Without Income Proof
Once you satisfy any or all of the conditions mentioned above, you can apply for an instant cash loan in 1 hour without documents online by following these steps:
Step 1: Download the application or visit the website of your preferred lender.
Step 2: Sign up on that application/website to create an account.
Step 3: Complete the KYC formalities by uploading the relevant documents.
Step 4: Browse to the ‘Personal Loan’ section on the application/website.
Step 5: Enter the loan amount that you wish to apply for and the loan tenure.
Step 6: The final step involves accepting the terms and conditions and submitting your request.
Once you submit your request, the lender will start processing the same and will disburse the personal loan in your bank account once it is approved.
Features & Benefits of Personal Loan Without Income Proof
Here are some of the features and benefits of personal loans without income proof:
- Competitive interest rates
- No collateral required
- Transparency and instant disbursal
- Easy repayment with flexible tenure period
- The loan amount depends on the repayment capacity of the individual
- The loan amount can be used for any personal expenditures
Eligibility Criteria For Personal Loan Without Income Proof
The eligibility criteria to get an instant personal loan are as follows:
Eligibility Criteria For Salaried Employees
- You must be an Indian citizen, aged between 18-65.
- You should have a minimum credit score of 650.
- You should have been working for a minimum of 2 years.
- Your monthly income must be a minimum of Rs. 20,000.
Eligibility Criteria For Self-employed
- You must be an Indian citizen, aged between 18-65.
- You should have a minimum credit score of 650.
- You should have sufficient funds to repay the loans on time.
- The turnover/profits of your company should meet the lender’s requirements.
Documents Required For Personal Loan Without Income Proof
Documents Required For Salaried Employees
- KYC document- Aadhaar, PAN, Voter ID, Driving License.
- Age Proof- PAN, Aadhaar, Passport, Birth Certificate.
- Address Proof- PAN, Aadhaar, Passport, Voter ID.
- Bank statement for the last 6 months.
- Income tax returns or Form 16.
Documents Required For Self-employed
- KYC document- Aadhaar, PAN, Voter ID, Driving License.
- Age Proof- PAN, Aadhaar, Passport, Birth Certificate.
- Address Proof- PAN, Aadhaar, Passport, Voter ID.
- Bank statement for the last 6 months.
- The annual turnover documents of the last 2 years.
- Income tax returns of the last 2 years.
- Business Proof- company license, registration documents.
- IT assessment or clearance certificate.
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Final Word
Getting a personal loan without income proof is possible, but you still might need to submit some documents for availing one. Technology has enabled lenders to sanction a personal loan with minimal documentation and all information is available and accessible online.
For hassle-free, paperless and instant personal loan disbursal, download the Navi app. You can get instant loans up to Rs.20 lakh with Navi Personal Loan.
FAQs
Ans: The limit for instant loans varies from lender to lender and depends on a horde of factors like your credit score, repayment capacity, and income, to name a few. However, with Navi, you can get personal loans up to Rs. 20 lakh.
Ans: Your interest rate depends on your overall application, tenure, EMI choice and credit history. You can use the EMI calculator to estimate your interest rate. However, if you have a poor credit score, lenders may charge you higher rates.
Ans: Yes, you can apply for an instant cash loan even if you are unable to furnish proof of salaried income.
Ans: The minimum income criteria vary from lender to lender. However, it’s safe to say that your monthly income must be a minimum of Rs. 15,000 to Rs. 20,000 per month.
Ans: Yes, you can avail an instant personal loan without a salary slip or bank statement by submitting alternate documents such as PAN or Aadhaar card.
Ans: Although it is recommended to have CIBIL score, you can still get an instant personal loan without it, but you must have proper bank statements and proofs to show the lenders that you are eligible for loan repayment. But, for such loans, the terms and conditions are quite strict, like higher rates, low loan amount and tenure.
Ans: Yes, self employed individuals with a low credit score can also apply for personal loans. Credit score is one of the many metrics that lenders take into account while deciding on a loan application; however, it is not the only one that lenders focus on.
If the self-employed individual has solid income proof or a trustable co-applicant, they have a good chance of securing the loan. However, they may have to pay high interest.
Ans: There is a minimum age and income requirement that self employed individuals must fulfil to avail loans. The minimum age can be 21 or 23 years, and it varies from one lender to another. Many banks mandate a minimum income requirement as well. It can be between 4 and 5 lakhs and depends on the repaying capability of the borrower.
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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