Personal Loan without Salary Slip? Is it possible?

A personal loan is one of the very few loans in India that offer you unparalleled flexibility. And, with the arrival of online instant loan apps, applying for a personal loan has become easier than before. Generally, when you apply for a personal loan, the lender asks you to submit your income proof, including your salary slip and appointment letter. However, if you do not have either of both, can you still apply for a loan?

The short answer to the question is, ‘Yes.’ 

But, to ensure a speedy approval, you need to follow some steps. Scroll down to discover the most straightforward tips to apply for a personal loan without a salary slip. 

Why Is Salary Slip Essential For A Personal Loan?

Salary slips, coupled with bank statements, are essential for two reasons. First, they give the lender insight into your monthly income and spending habits. Second, they help you satisfy the minimum income criteria set by the lender. 

Generally, brick-and-mortar lenders accept personal loan applications from borrowers earning a minimum of INR 10,000 to 15,000 per month. In contrast, online instant loan apps cater to borrowers with a monthly income below INR 15,000. 

Since instant loan apps run their operations online, their interest rates and other charges are lower than conventional brick-and-mortar lenders. 

The following section mentions the tips you need to apply for a personal loan without a salary slip. 

The Top Tips To Get A Personal Loan Approved Without Submitting Salary Slip

Here are the steps you need to follow to get your loan approved without submitting a salary slip:

1. Show an Alternative Income Proof

As mentioned previously, income proof is vital for a lender to evaluate the borrower’s financial profile. However, if you are a freelancer or self-employed professional, you won’t have a salary slip. In such a case, you may present other income proof, such as the bank account statement, income certificate, Form-16, or Income Tax Returns. 

Some salaried professionals do not receive any salary slips from their employers. The tip mentioned above applies to them as well. 

A steady income source assures the lender that the loan will not turn into bad debt, and hence, they won’t mind offering a discounted interest rate, besides a speedy approval. 

2. Flaunt Your Credit Score

You might have several reasons to apply for a personal loan, including short-term cash crunch, job loss, business debt consolidation, house repair, etc. But, the non-availability of salary slips may act as a stumbling block on your way to get easy credit. 

Fortunately, a high credit score can help the lender overlook the salary slip and approve the loan. The credit score reflects your financial and debt status. Lenders generally trust borrowers with a high credit score and might not mind offering you a personal loan without a salary slip. Online instant loan apps are typically more lenient than brick-and-mortar lenders when considering the credit score. 

3. Rope in Another Applicant

If the lender refuses to approve your loan without a salary slip or bank statement, the next best option is to add the name of a creditworthy applicant to your loan application. Remember, the second applicant must have a stable income source and a high credit score. 

Adding a second applicant assures the lender of repayment in case the primary applicant stops paying. Joint personal loaninterest rates are generally lower than single loan accounts.      

4. Choose a Considerate Lender

Even after following the tips mentioned above, you might still fail to secure loan approval. Don’t feel sad if this happens to you. Some lenders are more strict than others, and if you approach such lenders, the chances of the loan application getting rejected will be high. 

You may approach a reputed online instant loan app to increase the odds of approval. Online instant loan appslike Avail Finance issue small-ticket loans of up to INR 40,000 with easy eligibility. Regular repayment of these loans may increase your credit score and make you eligible to apply for bigger loan amounts. 

Personal Loan Without A Salary Slip – It’s Possible!

By now, you know how easy it is to apply for a personal loan without a salary slip or bank statement. Big or small, a personal loan can offer you solace from cash-crunch. And online instant loan apps increase the convenience one step further. With features like fast approval, minimal documentation, convenient application, and ultra-low interest rates, a personal loan from an online instant loan app is all you need to shove off your financial problems.

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