Personal loan without bank statement
Having a bank account is essential to take care of all the financial dealings. Managing finances becomes easy with a bank account as it allows you to debit and credit money as per your requirement. With a bank account, you can have access to your hard-earned money anytime, anywhere. Bill payments, salary credits, tax payment, insurance payment and others are all processed through your bank account. Even for that matter to get a loan, having a bank account is necessary as the loan amount is disbursed in your account and the repayment of the loan too is done through the same account. Your bank statement is one of the important documents that you need to provide to be eligible to get a personal loan. However, if you do not want to provide your bank statement to avail a loan, then here’s how you can get personal loan without bank statement.
First let’s understand why bank statement is important to get a personal loan
Submission of your bank statement is critical when applying for a personal loan as it acts as a valid proof of your monthly income and ability to repay the loan. It determines your personal loan eligibility as It records your monthly credits and debits i.e. your bill payments, salary credit and others. In addition to this, it also confirms your identity, repayment capacity and your existing EMI outflow. Thus, when applying for a personal loan with a bank, NBFC or even an online lender, submission of your bank statement is imperative. However, you can also avail a personal loan without bank statement in an easy way by considering the following options.
Payday loans: Also known as salary loan or payroll loan, a payday loan is a short-term loan that is offered on the basis of your salary slip. This type of loan is unsecured and is offered without any collateral. Opting for this type of loan is the right choice for salaried individuals who have just started working. However, the interest charged on this type of loan is higher than that of a personal loan availed from a bank or NBFC. Payday loan product is offered mostly by leading fintech companies in India.
Peer-to-peer loan: Popularly known as P2P lending or crowd lending, peer to peer lending allows lenders to lend and borrowers to borrow. This type of lending and borrowing is usually done online where in both the parties have to register themselves. Postdate cheques are collected from the borrower in the name of the lender as proxy for loan repayment. Loan amount is transferred directly in the bank account of the borrower. This type of loan is sanctioned on the basis of your credit score, social score and KYC documents. Since borrowers are at high risk, the interest rate on this type of loan is usually high.
Other ways by which you can get personal loan without bank statement
Establishing a good relationship with your bank: If you are applying for a personal loan with the same bank that you hold a savings or salary account with, then the bank is likely to not ask you for bank statement as it is fully aware of your credit worthiness.
Pay all your credit card dues on time: If you hold a credit card, then ensure you repay the dues on time as doing so can increase your chances of getting a loan without any bank statement.
Maintain a high credit score: Maintaining a high credit score increase your chances of getting a loan as several banks, NBFCs and online lenders are likely to offer you the loan just on the basis of your score. Having a high credit score is a sign of good repayment behavior and instills faith in the lenders regarding repayment of the loan.
Other documents required to get a personal loan:
- Identity proof (Aadhar card, driving license, PAN card, voter’s ID)
- Address proof (Aadhar card, driving license, PAN card, voter’s ID, utility bill)
- Salary slip and Form 16 if required
Applying for a personal loan without bank statement would generally attract a high rate of interest or even lead to loan rejection. Therefore, to get a personal loan at best interest rates, it is necessary you submit your bank statement.