A personal loan is a highly beneficial credit instrument. It helps you to get the required money quickly at times of need. While applying for a personal loan, you do not have to go through time-consuming formalities and bulky documentation. Most lenders approve such loans easily and disburse the amount as quickly as possible. One of the most unique features of a personal loan is that you can avail it even without a salary slip. Yes, you can get a personal loan without salary slip! However, while doing so, there are a few things that you need to keep in mind.
Lenders, while approving a personal loan without salary slip usually look at other aspects of the borrower. Hence, it is extremely important to be in tandem with all other eligibility criteria. In this article, we are going to learn the things that you should remember while applying for a personal loan without salary slip.
Top 7 Things to Know Before Applying for a Personal Loan without Salary Slip
These 7 tips will help you to get a personal loan without salary slip easily:
Keep all the Valid Documents
You need to keep in mind that when you are applying for a personal loan without income proof, there are chances that the lender may not approve the loan application. Therefore, you should keep all the necessary and relevant documents with you so that your loan application becomes strong. Make sure that you have a valid PAN and Aadhar card, date of birth and address proof, etc. Furnishing all these documents will help you to pace up the loan approval process.
There are many ways to increase your chances of personal loan without salary slip approved.
Make Sure You Don’t Have an Unclosed Loan Account
The chances of your personal loan application without salary proof getting rejected are if you have an unclosed and ongoing unsecured loan. Lack of income proof and a running loan combinedly lowers your chances of getting the loan approved further. Therefore, it is recommended that you should apply for a new loan only after ensuring that all your existing loans are duly paid off completely. Lenders will know that you do not have any EMI burden and you can manage to pay off the new loan’s EMI without any hassle.
Get a Co-applicant if Possible
Adding a co-applicant to your personal loan without salary slip will help you to get the loan approved easily. The lender will consider the income of the co-applicant of the loan and approve the loan amount based on the same. The salary slip of the co-applicant will compensate for your inability to provide any income proof. Furthermore, with the salary of the co-applicant of the loan, you can avail good loan offers in the form of lower interest rates.
Apply for a Smaller Loan Amount
A bigger loan amount means bigger EMIs, for which you need to have a good monthly income. If lenders do not get assurance of the loan repayment, they may not consider approving the loan. Hence, if you do not have a salary slip, it would be best to apply for a smaller loan amount. With a lower loan amount, you will not have a heavy EMI burden, which can allow the lender to sanction the loan.
Add a Guarantor
A guarantor in a loan is the individual who takes the responsibility of repaying the loan if the borrower defaults for some reason. Adding a guarantor to the loan allows the lender to easily sanction the loan amount. The absence of salary slip is compensated by the addition of a guarantor. This gives lenders assurance that they will get the loan amount repaid even if the primary borrower fails to do so.
Do Not Fall Prey to Extremely Higher Interest Rates
It is true that you have to settle for a slightly higher interest rate while applying for a personal loan without salary slip. However, this does not mean that you should allow the lender to charge exorbitant interest. There are a number of lenders available in the market and hence, you should compare all the offers based on your eligibility. A bit of research will help you to save a lot of money by availing a loan at a doable interest rate.
Keep Your ITR Ready
Salary slip is not the only income proof that is valid while applying for a personal loan. If you are not a salaried employee but earn from a business or some other source, you can still apply for a personal loan at best offers. For this, you need to produce your income proof, which can be ITR or annual tax return filing. Banks usually check your past 2 or 3 years ITR in order to assess your eligibility based on your annual income.
Following the aforementioned tips in mind before applying for a personal loan without salary slip will increase your chances of loan approval. You can apply for a personal loan easily with an online lender and enjoy a very hassle free loan approval process.
