Personal loans help you fulfill your responsibilities or wishes when you’re low on funds. Be it for a wedding, education, or even a vacation; you can take a loan for various reasons. Loans usually involve collateral, but you can even get one without it.
Like most loans, it requires a salary slip as proof of your eligibility. Banks ask for a salary slip as a security that you would pay the installments efficiently. A salary slip is issued by your employer and contains all the details about your income. However, there are ways to take a loan without having to provide a salary slip. Here we have provided you with information and tips you might need to do the same.
Ways to get a Loan without Salary Proof
Loans are always given based on a certain guarantee from the borrower. In the case of personal loans, lenders tend to look into one’s financial profile before granting the loan. This is primarily done to find out the borrower’s repayment capability. It starts with the lender checking one’s income and further verifying it with salary slips.
However, there are a few financial institutions that provide personal loans without income proof. Ways to avail such a facility are:
- Healthy credit score: A credit score reflects one’s credit repayment history and debt status. A score of 700 and above is considered excellent. Anything above 600 showcases your responsible behavior. A high credit score is a result of you paying your credit debts on time. This ensures the bank that you are punctual and will pay your installments efficiently. Moreover, some banks may even approach you first only because of your high credit score.
- Applying with a Co-applicant: This method is by far the best to get a personal loan without pay slips. You can apply for a loan with a partner who has a stable income. The creditworthiness and steady income of one’s co-applicant are enough to gain the trust of the lender. If the borrower fails to repay the loan, the co-applicants serve as the backup source of repayment. There is also a chance to gain a higher loan by including a guarantor in the agreement.
- Maintaining a good relationship with the lender: This factor depends on person to person. If one has previously taken loans from the lender and has a good history, then that person must be on good terms with the lender in such a scenario. Thus, there are higher chances of getting a loan again from that lender.
- Offer collateral:You can also get a personal loan without a salary slip against a valuable item as collateral. It can be anything, depending upon the amount of loan you are taking. Valuable items like gold and silver jewelry can serve as collateral for your loan. However, you should keep in mind to pay your dues on time; otherwise, it may result in the bank seizing your collateral.
Eligibility Criteria to get a Personal loan without Salary Slip
Certain conditions need to be met to get a loan without a salary slip. Down below are some of the common criteria to get a personal loan.
- The age limit to apply for a loan is between 21 and 60 years old.
- Your income must be credited to your account.
- You should have a minimum in-hand income and the amount differs for each country.
- A credit score above 600 is required.
- Important documents according to the country’s requirements.
- Consistent Work experience proof for previous months.
Steps that you can Follow
Now that you have confirmed your eligibility criteria the next step is to apply for the loan. With everything being online nowadays, you can apply for a personal loan at the comfort of your home. Here are some simple steps you can follow to get yourself a personal loan without a salary slip.
- Log in to the desired bank’s webpage and select a personal loan. Or you can visit its nearest branch.
- Check your eligibility status and search the maximum amount up to which you can take a loan.
- Select your desired loan amount.
- Have a custom repayment plan made for you by entering your repayment period.
- Ensure the amount of your installment and calculate everything beforehand.
- Upload all the necessary documents required such as ID proof and bank statements.
- Make sure you provide all the documents asked by the bank otherwise your application may get rejected.
- Provide a bank account from which your installments would be paid.
- Wait for the bank to approve your application.
- Once your application is approved the bank may call or email to let you know.
- After some time of approval, the amount would get transferred to your bank account.
With this, we can conclude that you can take a personal loan without providing a salary slip. Although it’s easy to get a salary slip from your employer, this might come in handy for self-employed people. If you are unable to get a slip for some reason, you need not have to fear your loan getting rejected.
Keep in mind that the eligibility criteria and requirements differ from bank to bank. It is recommended that you research your bank and ensure that you have everything they ask for. We hope that the tips as mentioned earlier prove to be helpful to you.
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