How to get a Personal Loan without a salary slip?

Personal loans for self-employed individuals: 5 ways to get a personal loan without salary slip

A personal loan is an unsecured form of debt that allows you to cover many types of expenses. It does not require any collateral and can be sanctioned quickly. However, because of the lack of collateral, lenders ask for salary slips as proof of income.

The good news is, you can leverage the complete power of your salary to get a good line of credit.

This feature is not a problem for salaried individuals, but if you are a self-employed person, you might have trouble trying to figure out how to get a personal loan. There are, however, a few ways to get an  instant personal loan without salary slips. Read on to know about them:

1. Providing an alternate income proof

You cannot get salary slips if you are self-employed and have an active business contractually. In such a case, one of the easiest ways to get a personal loan for self-employed individuals is by providing the lender with an alternate income proof. This can include documents like a bank account statement, ITR, or an income certificate.

These documents assure the lender that you have a steady income. Besides these documents, providing Form 16 also works if you are applying for a personal loan without a salary account.

2. A good CIBIL score

A score of above 700 is excellent on the CIBIL’s scale of 300-900. Having a CIBIL score above 700 shows that you maintain a disciplined credit life and pay all your dues on time. It tells your lender that you will be disciplined in paying your personal loan EMIs. “A good score instils faith in the lender, who then approves your personal loan without a salary slip. A good CIBIL score can also get you good personal loan rates of interest.”

IDFC FIRST Bank, for instance, offers attractive interest rates for borrowers with an excellent credit score. You can avail of personal loans amounting to lakhs if you have a good score and meet all the other eligibility criteria for personal loans.

3. Good relations with the bank

If you have built a strong relationship with your bank, you will not be required be provide any documents for applying for a personal loan. A strong relationship with the bank is built if you already have an account (savings or current) with the bank.

Plus, if you have also taken a loan from the bank or owned a credit card and paid the dues on time, you have a good credit record with the bank. In such a case, the bank will approve your personal loan without a salary slip.

4. Offer an asset

Even though a personal loan does not require collateral, you can offer an asset as security. These assets can be any high-value investments. If the lender approves, you can quickly get your personal loan without salary slip and bank statement.

Ensure, though, that you pay your dues consistently. Late payment and default on your EMIs might force the bank to seize your asset.

5. Applying jointly with another applicant with a steady income

You can also apply for a personal loan with someone who is a salaried individual and has a steady income. Your co-applicant’s steady income will balance the creditworthiness for the lender and your loan application will get approved.

Before you apply for a personal loan, ensure you do all the research from your end. Also, ensure that you always maintain a good credit score and pay all your dues on time. Both these practices can go a long way and help you when you need an urgent loan without salary slip. Good luck!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.