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Personal loan for cash salary: Eligibility, process & alternatives

By Tata Capital
18 February 2026
10 mins read
1963

Getting a personal loan is easier than ever now, but not for everyone. Most lenders ask for a salary slip to determine the applicant’s repayment capacity and loan eligibility. But if you receive your salary in cash, demonstrating stable income without formal documentation can become a major hurdle. Knowing that you can repay the loan but cannot prove it to the lender can be frustrating. Many people in small businesses, shops, or workshops face a similar situation. Fortunately, there are short-term cash loans in India. These loans consider your job stability, references, and other proof instead of formal payslips. They help you access funds when you really need them.

This article focuses on answering the question, “Can I get a loan on a cash salary?” in detail, helping you with the eligibility criteria, application process, pros and cons, etc. Let’s find out.

What is a personal loan for cash salary earners?

A personal loan for cash salary earners is a loan given to people who receive their wages in cash instead of a bank transfer. A cash salary means an organization pays money directly into the employee’s hand. It may or may not provide formal salary slips.

In such a situation, lenders find it harder to verify income stability. They may ask for ID proof, address proof, an employment letter, references, or bank statements showing deposits to approve a loan. Short-term cash loans usually have smaller amounts and higher interest rates. Your approval chances can improve if you have a stable job, good credit history, or a guarantor. It can help you get better loan terms.

Is it possible to get a loan on a cash salary in India?

Yes, it is possible to get a loan on a cash salary in India, but it can be harder. Many banks prefer salary slips and bank transfers because they help prove income. However, some NBFCs and digital lenders still offer loans if you can provide other proof, such as bank statements, income records, job details, or a good credit score.

Approval for a cash salary loan depends on stable employment, regular earnings, and repayment ability. Some lenders may ask for a co-applicant, collateral, or charge a higher interest rate. While not every bank accepts cash salary applicants, loans are available if you can show reliable income and financial discipline.

Who can apply for a personal loan without a salary slip?

You can apply for a personal loan without a salary slip if you meet the basic eligibility rules.

Age limit: Most lenders require you to be 21 to 60 years old at the time of loan application and maturity, respectively.
Income level: You should have a steady income, even if paid in cash.
Employment type: You must have a stable job or business. Both salaried and self-employed people can apply.
Documentation: You will need to submit bank statements, employment letter, etc., to prove financial stability.
Credit score: A good credit score, usually above 750, is required.
Existing debt: Your approval chances improve if you have lower existing debts.
Co-applicant: Some lenders may also ask for a guarantor or co-applicant.

If you meet these factors, it shows that you can repay the loan on time and makes you eligible for a personal loan without a salary slip.

How to apply for a personal loan on a cash salary?

The step-by-step process to apply for a personal loan on a cash salary is as follows:

1. Choose the right lender

Compare banks, NBFCs, and loan apps that accept cash salary applicants. Before selecting the best option for your needs, look at the interest rates, loan amount, eligibility rules, and customer reviews.

2. Check eligibility

Make sure you meet age, income, and job stability requirements. A steady income and a decent credit score improve approval chances and help you get better loan terms.

3. Collect documents

Gather ID proof, address proof, and other KYC documents. You will also need to submit bank statements, a job letter, and references. These documents are necessary for lenders to verify your borrower profile.

4. Submit application

Fill out the loan form online or at a branch. Provide correct personal, job, and income details to avoid delays.

5. Verification process

The lender may call your employer, check references, or visit your workplace to ensure that you can repay the loan.

6. Review and accept the offer

Read the loan offer carefully. It will mention the approved loan amount, interest rate, and repayment plan. Sign the offer if you are satisfied with the terms.

7. Loan disbursal

After final approval, the loan amount is transferred to your bank account or given through the agreed method.

Use alternative income proofs

If you receive your salary in cash, you can still apply for a personal loan by showing alternative income proof. Bank statements with cash deposits can work to convince lenders of your regular earnings. An employer letter or salary certificate can also confirm your job and monthly pay.

Moreover, Income Tax Returns (ITRs) can show your declared income and improve trust. Lenders can evaluate your repayment capacity by reviewing your cash deposit history or digital payments. The more proof you give of regular income and stable work, the better your chances of getting approved for a personal loan.

Apply through NBFCs or digital lenders

NBFCs and digital lenders are often more flexible than traditional banks when you earn a cash salary. They allow you to proceed with the application process even when you cannot submit formal salary slips. Instead, they look at other proofs such as bank statements, employer letters, cash deposit history, and credit score.

Their process is usually faster and mostly online, making it easier to apply from home. They may approve smaller loan amounts at slightly higher interest rates because of the risk. NBFCs and fintech lenders can be a helpful option for getting a personal loan. You can apply to them if you have a steady job, regular income, and good repayment history.

Maintain a healthy credit score

Maintaining a healthy credit score is crucial when applying for a personal loan on a cash salary. A good score shows lenders that you repay loans and credit card bills on time. Most lenders prefer a score of 750 or above. To keep your score high, pay EMIs and bills before the due date, keep credit card use low, and avoid making too many loan applications together.

Review your credit report regularly to ensure there are no mistakes. If possible, keep old credit accounts active to build history. A strong credit score increases the chances of approval. It also helps with getting higher loan amounts.

Consider secured loan options

If getting a short-term instant cash loan is difficult, you can consider a secured loan. In a secured loan, you give an asset as collateral to the lender. This can be gold, a Fixed Deposit (FD), or property. Since the lender has security, the risk is lower, and approval chances are higher.

Secured loans may also offer lower interest rates and higher loan amounts than unsecured loans. You must repay the loan on time, or the lender can take the pledged asset. Choose this option only if you are confident about repayment. Using collateral can make it easier for cash salary earners to get quick funds when needed.

Documents required for a personal loan on a cash salary

The documents you must submit to secure instant short-term cash loans include:

ID proof: Provide an Aadhaar card, PAN card, voter ID, or passport to confirm your identity.
Address proof: Submit utility bills, rental agreement, Aadhaar, or driving license to verify where you live.
Photographs: Lenders usually ask for recent passport-size photos for records.
Bank statements: Six months of statements help show deposits, spending habits, and financial stability.
Income proof: Employer letter, salary certificate, or cash deposit history can prove regular earnings.
Credit report: Some lenders check your credit score to assess repayment ability.
References: You may need to provide contacts who can confirm your job and income stability.

Interest rates and charges for cash salary loans

Interest rates and charges for cash salary loans are usually higher because lenders see more risk. Most personal loan interest rates in India start around 10% and can go up to 30% or more, depending on credit score and income stability.

Cash salary applicants may get rates on the higher side of this range. Lenders also charge a processing fee, usually 0.5% to 3% of the loan amount plus GST.

Other charges may include late payment or pre-payment fees. Your credit score, job stability, income proof, and loan amount affect the final interest rate and total cost.

Best loan options for cash salary earners: Comparison

Cash salary earners can choose between banks, NBFCs, and digital lenders. Banks offer lower interest rates, around 10% to 15%. However, they may also require strong income proof and a credit history. This can make approval tougher.

NBFCs are more flexible. They allow you to submit alternative proofs with your application. These include bank deposits or employer letters. But, you must understand that their rates may be higher, often 10% to 30% or more. Digital loan apps give quick approvals and smaller loans, but interest rates can be on the higher side.

Loan amounts, fees, and approval speed differ across lenders. You must compare interest rates and repayment terms to pick the best option for you. Careful selection of the loan option also improves the chances of approval.

Pros and cons of taking a loan on a cash salary

Even the best short-term cash loans have pros and cons that you must consider. These are as follows:

Pros:

Access to funds: You can still get money for emergencies or big needs even without salary slips.
Flexible options: NBFCs and digital lenders may accept alternative income proof.
Quick approval: Some lenders offer faster processing and simple online applications.
Build credit history: Timely repayment can improve your credit score for future loans.

Cons:

Higher interest rates: Loans may cost more due to the higher risk for lenders.
Lower loan amount: Banks offer a higher amount for an urgent short-term loan for a salaried individual. But the cash salary loan amount is usually lower.
Tougher verification: Lenders may ask for references, office visits, or a guarantor.
Limited choices: Fewer lenders accept cash salary applicants.

Common reasons for loan rejection for cash salary earners

A short-term instant cash loan may be rejected due to the following reasons:

Low credit score: A poor or limited credit history makes lenders unsure about repayment ability.
Irregular income: Unstable or changing monthly earnings can reduce approval chances.
No income proof: Lenders cannot evaluate your borrower profile without bank statements and other income records.
High existing debt: If you have too many loans or credit card dues, the lender’s risk increases.
Frequent loan applications: Applying to several lenders at once can lower your credit score.
Unstable job or business: Rejection can also result from a short work history or frequent job changes.
Incorrect details: Errors in forms or documents can delay or stop approval.

FAQs

What is the minimum income required for a personal loan on a cash salary?

The minimum income required for cash salary loan applicants is Rs. 15,000 to Rs. 25,000 per month. The requirements may vary by city, job stability, and credit score. Higher income improves approval chances and loan amount, while lower income may need a co-applicant or guarantor.

What documents are required for a personal loan if the salary is paid in cash?

Cash salary applicants usually have to provide ID proof, address proof, and recent photographs. To showcase financial stability, you must submit an employment letter or certificate, salary slips or handwritten receipts, and bank statements if available.

How do lenders verify income for cash salary applicants?

Lenders verify income for cash salary applicants through employer calls, workplace visits, salary slips, or signed salary certificates. Bank deposits and past repayment history may also be reviewed. In certain cases, lenders ask for references or a guarantor to confirm stability and earnings before approving a loan.

Does having a bank statement help in getting a loan with a cash salary?

Yes, bank statements help a lot. They show regular deposits, spending habits, and balance. Lenders use them to understand income stability and repayment ability. Providing 6 months of statements can improve trust, speed up approval, and sometimes get better loan terms.

What is the interest rate for personal loans for cash salary earners?

Interest rates for cash salary earners are usually higher because risk is greater. The rates may range from about 10% to 30% per year. They depend on credit score, income proof, job stability, and lender policy. A good credit score can reduce rates further.

What is the maximum loan amount available for cash-salary individuals?

The maximum loan amount for cash salary applicants is usually lower than for salaried applicants. Many lenders offer from Rs. 50,000 to Rs. 5 lakh. It depends on the borrower’s income, credit score, and job stability. A guarantor, strong references, or bank deposits can help increase the amount.

How long does it take to get approval for a personal loan on a cash salary?

The approval time for cash salary loans is longer than for regular loans. It may take 2 to 7 days because lenders verify employment, income, and references. Approval is possible only if documents are complete, the credit score is good, and verification is completed smoothly.

Can self-employed individuals with cash income apply for a personal loan?

Yes, self-employed people with cash income can apply for personal loans. They need proof of business, income records, references, and sometimes bank statements. Lenders check stability and repayment capacity. A good credit score or guarantor improves approval chances and terms.

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