How to get a personal loan without a salary slip in India?

When you apply for a personal loan, lenders evaluate many factors to approve your application, such as credit score, nature of employment, age, repayment capacity, etc. However, the most important factor is your income, which is verified through salary slips. Since there is no collateral involved with a personal loan, lenders usually ask you to provide a salary slip to verify your employment status and ensure that you have the ability to repay the loan.

Getting approved for a personal loan can be difficult if you are self-employed or working as a freelancer where you don’t have a salary slip to demonstrate your steady income. However, there are a few ways to get an instant personal loan without salary slips.

  • Produce an alternate stable proof of income 

Provide the lender with a clear picture of your financial situation. If you are self-employed, you can produce your bank account statement or your income tax return certificate as proof of income. Besides these documents, mention any other sources of steady income, such as investment income, dividends, rent, etc.

  • A good CIBIL score 

CIBIL score reflects your repayment history, credit handling abilities, and your debt status. A good CIBIL score indicates that you are a disciplined borrower and clear all dues on time, which instils faith in the lender and shows that you will pay your Equated Monthly Instalments (EMIs) on time. Moreover, a high CIBIL score can also help you get a better personal loan interest rate.

  • Bring in a co-applicant 

A co-applicant is someone who applies for the loan with you and is also legally responsible for repaying the debt. Try to apply for personal loan with a co-applicant who has a steady income and good credit score to increase the lender’s trust in your repayment capabilities. This is because a co-applicant typically acts as a secondary source of repayment. Hence, if you miss some repayments, the lender can rely on your creditworthy co-applicant to make up for it.

  • Maintain a good relationship with the lender 

Generally, lenders prefer to lend to individuals with whom they have an existing relationship. This means having a history of making timely payments, maintaining transparency, and keeping your account in good standing. If your lender knows and trusts you, they may agree to approve your loan without salary slips. Moreover, if you have a good credit record with the lender, you may even get a low personal loan interest rate.

  • Approach a lender with minimum eligibility criteria

Many lenders have basic personal loan eligibility criteria for applicants and are more likely to consider your application without salary slips. Applicants can confidently apply for personal loans online with minimal and hassle-free documentation. Just check and compare different lenders’ criteria online and find the one that matches your profile and requirements.

Closing thoughts 

All these practices and tips can help you when you need an urgent personal loan without a salary slip. However, remember that in absence of a salary slip, it becomes more important to check the eligibility criteria, personal loan EMI rates, additional fees, and loan tenure before applying. To help borrowers, lenders also offer a personal loan EMI calculator on their websites to calculate the estimated EMI amount in advance. After calculating the EMIs and additional fees beforehand, you can confidently hit the personal loan apply online button.