Information & Apply for Personal Loan Without Income Proof
A personal loan is an unsecured loan that can be availed to cater to financial emergencies such as home renovation, payment of medical fee, education expenses and others. To avail this type of loan, a loan applicant has to submit few documents including an identity proof, address proof as well as an income proof. Self-employed individuals when applying for a personal loan are required to submit salary slip, bank statement, Form 16 and other documents to get the loan approved. Submission of income proof is mandatory to make it easy for banks to verify your monthly income as well as its source. Few lenders in India do not process loan applications without income proof as doing so exposes them at high risk of lending. In comparison to secured loans, a personal loan being unsecured type does not require you to submit a long list of documents to avail the loan amount instantly. Also, this type of loan does not require you to submit any collateral as it can be availed based on your eligibility criteria.
Eligibility criteria for personal loan
To be eligible to get a personal loan, it is imperative that you meet the below eligibility criteria:
- You should be aged between 21-60 years
- You should be a citizen of India
- You should be self-employed
- You should draw a minimum salary of Rs. 20,000 per month
- You should be employed for a minimum period of 6 months
Documents required for personal loan
Below list of documents is to be submitted to get a personal loan:
- Identity proof such as Aadhar card, PAN card, driving license, Passport and others
- Address proof such as Aadhar card, driving license, Passport, utility bill and others
- Income proof such as salary slip, bank statement, Form 16 and others
- Passport size photographs
- Duly filled application form
Tips to get personal loan without income proof
Based on your relationship with the lender and your transactions, few lenders in India can offer you personal loan without income proof. Below are few tips that can help you get a loan without bank statement, salary slip or any other income proof.
Clear all your dues on time: If you own a credit card and pay all your dues on time, then you are likely to get a personal loan without submitting any income proof. This type of loans are generally pre-approved loans that come with a pre-approved limit.
Having a high credit score: A high credit score gives the lender a sense of assurance regrading timely payment of EMIs from your end. Remember, a low credit score can lead to loan rejection or approval at high interest rate. On the other hand, having a high score makes you eligible to get a high loan amount at low interest rate. If you don’t have a high score then you can increase it by making timely payments, maintaining a low credit utilization ratio, not missing out on EMI payment and others.
Establishing a good relationship with lender: Maintaining a good relationship with the lender i.e. not missing out on any payments, maintaining the minimum balance, investing with the same lender, having salary account with the lender and others then the lender is aware of your repayment capacity that makes it easy for you to get a loan.
Difference between applying for personal loan from banks and NBFCs
One of the primary differences between applying for personal loan from banks and NBFCs is that the latter follows a stringent documentation process that makes it easy for you to avail a loan without any income proof. The interest rate offered by both banks and NBFCs depend on your credit score and monthly income. NBFCs are little soft with their requirements when processing loans and submitting either of your bank statement or salary slip.
Apply for personal loan from banks and NBFCs
Self employed professionals can apply for personal loan from banks and NBFCs online without having to go through any paperwork or complex application process. The loan application process today is quite simple as you can easily do it online by applying through the lender’s app or website. The process requires you to submit your basic details along with KYC documents and income proof. The loan process becomes quite simple for an applicant having as income proof as it becomes easy for lenders to verify the details submitted. On the other hand, not having any income proof can lead to rejection of the loan altogether.