The demand for credit, especially personal loans, has been rising in India ever since the Covid-19 pandemic hit us. Personal loans have emerged as the third-most availed retail loans in FY21 in the country, accounting for 11.7% of the category loans disbursed in the last fiscal year. As of March 2021, there were active personal loans worth ₹3,96,000 crore!
So, why are personal loans so popular? It is because a personal loan can be used for a variety of purposes like covering wedding expenses, or medical emergencies. It can also come to the rescue when one needs to go on an unplanned trip, finance their child’s education, or get their home renovated! A personal loan can be used for any personal purpose.
However, one must submit certain documents like ID proof, address proof, last six months’ bank statement and salary slips to avail credit in India. Self-employed individuals or those looking for a job might find it difficult to submit salary slips and bank statements. Thus, can one secure a personal loan without a salary slip and bank statement? Let’s find out! But before that, let’s learn the benefits of a personal loan.
Benefits of Personal Loan
Following are some of the key benefits that one can enjoy by availing of a personal loan –
1. No Requirement of Collateral
A personal loan is a collateral-free credit and hence, one need not mortgage an asset to avail it.
2. Multi-Purpose Loan
A personal loan can be used for various personal purposes:
- Planning an international trip
- Funding children’s higher education
- Purchasing an asset
- Starting a business
- Covering wedding expenses
3. Zero Penalty on Part Prepayment of Loan
With Tata Capital, one need not bear any penalty charges if you repay a part of a personal loan any time after the completion of six months of the issuance of the credit.
Can One Secure a Loan Without Salary Slip and Bank Statement?
Yes, it is possible to secure a personal loan without salary slip and bank statement with the help of the below-mentioned tips and financial strategies.
How to Get A Personal Loan Without Salary Slip and Bank Statement?
One can get a without bank statement personal loan if they can back their finances and financial reputation with the help of the following –
1. Maintain a Good Credit Score
A credit score is a number that reflects a borrower’s creditworthiness, i.e. how disciplined they are when it comes to paying the credit back on time. In India, the most preferred and popular credit score is the CIBIL Score.
CIBIL Score is a three-digit number that ranges between 300 and 900. It reflects the borrower’s summarised credit history and credit rating allotted by previous as well as existing lenders, and helps one get a loan without bank statement.
Credit-providing financial institutions prefer individuals who have a credit score of 750 and above. Thus, individuals who wish to get a personal loan without bank statements and/or salary slips, must try and maintain a CIBIL Score of at least 750.
2. Try and Keep Debt-to-Income Ratio Low
If you wish to get a personal loan without bank statement, you must try to keep your EMIs for ongoing loans and/or other forms of debt at least below 50% of your monthly income. This is because, if an individual is left with a substantial income in hand after paying all existing loans and debts, there are fewer chances of defaulting on the new loan.
3. Build Trust with the Lender
Another way individuals seeking a personal loan without bank statement can get the required credit is by winning the lender’s trust that they won’t make any default with the loan repayment. This can be done by sharing the repayment history of existing loans or past loans, along with the credit ratings received from existing and previous lenders.
To get a without bank statement personal loan, individuals should also be honest and patient with the questions that the lender might have regarding their repayment history.
4. Submit a Collateral
Though personal loans are a type of unsecured credit, if an individual wants to secure a personal loan without salary slip and bank statement, they can try offering submission of collateral to lower the risk quotient of the lender and improve their chances of availing the credit.
5. Get a Guarantor
Individuals looking for without bank statement personal loan can also avail of the required credit with the help of a guarantor. A guarantor is an individual who takes responsibility for the borrower’s creditworthiness and promises to pay the credit in case of repayment default by the borrower. For this, the guarantor must possess a good CIBIL Score.
6. Submit Details Regarding Source of Income
Individuals who wish to get loan without bank statement and/or salary slips can submit an alternate source of income to the lender and establish their ability to pay back the availed credit. This could be ascertained with the help of receipts of rental income, spouse/parent’s salary slips, etc.
A personal loan is one of the most flexible forms of credit which helps one meet both planned and unplanned expenses seamlessly. In addition, the documentation requirement can be met easily and conveniently with the help of the above tips if someone intends to get loan without bank statement and/or salary slips.
With Tata Capital, one can get a personal loan at highly affordable interest rates, starting from just 10.99% per annum. We offer two types of personal loan EMI options, Standard EMI and Flexi Loan EMI, which one can choose as per their convenience and preference. Moreover, our personal loans can be availed for amounts as low as Rs. 75,000 and as high as Rs. 35 lakhs for up to six years.