In order to obtain a personal loan, an employer must provide a pay stub and bank statement. Salary slips are essential documents for salaried individuals, while bank statements are required for self-employed individuals. This is considered an income document that indicates your ability to repay the loan on time. In most cases, you cannot get a personal loan from major credible finance companies if your bank statement shows an income below Rs.15,000. In India, most financial firms require a minimum income of Rs.15,000 or more as eligibility for their services. Is it possible to apply for a personal loan without a salary slip?
You can use other documents in place of salary slips.
The salary pay slip and bank statement are important income documents required for a personal loan, but it is not impossible to obtain a personal loan without them. By submitting alternate personal documents for a personal loan without a salary slip, such as you may be able to apply for a personal loan.
- Aadhar Card
- PAN Card
- Voter ID Card
- Utility Bills
- Ration Card
Providing alternative proof of income
When you are self-employed, you may not get monthly salary slips since you work on a contract basis. You can, however, still provide evidence of your income through other financial documents such as certificates, bank statements, Income Tax Returns (ITRs), and Form 16. Your income documents can help lenders verify your income and ensure that you can repay the loan.
Getting a Personal Loan without salary slips might be possible if you apply for a Personal Loan with a creditworthy co-applicant. If the co-applicant can prove income and have a good credit score, the lender will be more likely to sanction the loan. With this method, you can obtain the loan you require to meet your expenses.
Secure assets by pledging them
Alternatively, you could check if the lender provides asset-backed, secured loans to get a Personal Loan without the minimum salary for personal loan slips. Vous may pledge assets such as fixed deposits of high value, mutual fund units, gold jewelry, or whatever else you consider valuable to demonstrate your ability to pay back loans. Getting a Personal Loan approved without requiring income-based documents and even a lower interest rate if you pledge your assets may be possible.
Maintain a good credit score
In addition to examining your income sources, lenders also look at your credit history to determine your creditworthiness and repayment history. Thus, regardless of your employment status or recent loss of employment, you should keep your credit score high. A high CIBIL score makes lenders more comfortable about sanctioning your loan and assures them that you will repay it responsibly. You can easily obtain financial assistance with a credit score of 600-750, considered a healthy credit rating.