Top 6 Ways to Get a Personal Loan Instantly Without a Salary Slip

Well, availing of new-age personal loans is remarkably more accessible. Nowadays, you can obtain personal loans almost instantly, even without needing a salary slip (which was considered a basic requirement just a few years back)! Upon approval, the funds are seamlessly deposited into your savings bank account, all from the comfort of your home.

If you still think this sounds like a finance fantasy; let me assure you that getting a personal loan without a salary slip is very much a reality. Dive into this article to learn how you can get a personal loan without a salary slip.

Here are the top 6 ways to get a personal loan instantly without a salary slip:

1. Maintain a Good Credit Score:

A credit score reflects your creditworthiness. Typically, a credit score exceeding 700 is considered favourable, but having a score exceeding 750 can offer an additional advantage in expediting the personal loan approval process.

Therefore, maintaining a strong credit score plays a crucial role in securing your personal loan. Lenders prioritise this aspect when evaluating your suitability, particularly for personal loans, which are unsecured and do not require collateral.

Hence, your income and credit repayment history are the primary considerations for personal loan approval. If your credit score is good, the lenders consider your profile a low-risk one, which means the possibility of you defaulting on the loan repayment in the future is lower. This not only increases your chances of getting the personal loan approved quickly but also contributes to securing a better interest rate and lower processing fees.

To maintain or improve your credit score, it is necessary to consistently meet your EMIs' deadlines and avoid any loan or credit card payment defaults. Setting up an automatic payment system through your bank, where EMIs are debited automatically from your registered account on the due date, is an excellent approach. It is crucial to ensure that you maintain sufficient funds in your registered bank account to prevent any payment hiccups with the automatic instructions.

Maintaining a high credit score and repaying the dues on time can make you eligible for instant personal loans. Various institutions, including banks, NBFCs, and lending apps, are solely based on your repayment history and credit score. Depending upon the lender's policy, you might have to provide

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your KYC details and mobile number, and once approved, you can get the loan amount disbursed into your registered savings bank account within a few minutes or up to 48 hours.

2. Maintain a Good Account Balance:

When evaluating your ability to repay, financial institutions assess whether you maintain a satisfactory Average Monthly Balance (AMB). The calculation involves adding up the daily closing balances for each day within a month and dividing this sum by the total number of days in that month. So, if you consistently uphold a healthy balance, banks view you as a reliable candidate for lending, as it signifies your capacity to meet your repayment obligations.

Furthermore, when your savings bank account maintains a higher average balance, banks extend offers for instant personal loans, pre-approved personal loans, and pre-qualified personal loans. These loans are designed to be seamless and trouble-free, readily available for disbursement with just a few clicks into your savings account.

3. Provide the Alternative Income Documents:

When it comes to availing of a loan without the traditional documents like a salary slip and bank statement, individuals engaged in non-standard employment situations, such as being self-employed, freelancers, cash earners, or contract workers, can still access the funds they need. In such cases, you must provide alternative financial documents that can substantiate your income. These alternate documents may include an income certificate, bank account statements, or tax-related forms like an Income Tax Return (IT) or Form 16.

Providing these documents assures lenders that you have a stable and reliable source of income. This reassurance is crucial for them to have confidence in your ability to repay the loan, making you an eligible candidate for loan approval. Not only does it increase your chances of getting approved more swiftly, but it can also lead to more favourable loan terms and lower interest rates.

This concept remains applicable even if you are applying for a personal loan without a salary account. In such instances, you should still offer required documentation that demonstrates a consistent income source, reinforcing your creditworthiness and strengthening your prospects for a successful loan application.

4. Provide Collateral As a Security:

If your personal loan application is facing rejection because you lack the necessary income documents, there is an alternative option available to you. While personal loans are typically unsecured, meaning they do not require collateral, you have the option to pledge assets or property as collateral to secure the loan. This collateral acts as a form of security for the lender, mitigating their risk and potentially making them more inclined to approve your loan application, even if you don't have the traditional income documents.

However, it is crucial to exercise caution when offering collateral. The lender retains the legal right to seize the collateral in the event of a loan default. Therefore, if you choose to go this route, you must be diligent about ensuring the timely repayment of your EMIs to protect your collateral and avoid the risk of losing it to the lender.

5. Apply with a Co-borrower:

When your personal loan application is facing rejection due to your inability to provide proof of income, one strategy is to apply for the loan with a co-borrower, also called a co-applicant. In this scenario, you will be required to submit the income documentation (such as a salary slip, Form 16, ITR certificate, etc.) of the co-borrower to substantiate the financial stability required for the loan.

You must ensure that the co-borrower has a reasonably good credit score, as this factor plays a pivotal role in the loan approval process. A co-applicant with a solid credit history can increase the likelihood of your loan application being approved, even when your income documentation is unavailable.

6. Choose a Lender with Minimal Documentation Requirements:

When availing of a personal loan without a salary slip, you should choose a lender wisely. Numerous online loan apps and financial institutions specialise in providing instant personal loans with minimal paperwork. By opting for one of these lenders, you can secure an instant personal loan without the obligation of furnishing a salary slip or extensive documentation.

These lenders have simplified their application and approval procedures, making it easier and more convenient for borrowers to access the funds they need. This approach can save you time and reduce the administrative hassles associated with traditional loan applications, ultimately making the loan process more accessible and efficient.

To conclude:

Before applying for a personal loan, be diligent in conducting thorough research. In order to be eligible for instant personal loans that do not require salary slips or extensive documentation, ensure you maintain a strong credit score and timely repay your dues. These practices can prove invaluable when seeking an instant personal loan without a salary slip.

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KETKI JADHAV is a Content Writer at PersonalFN since August 2021. She is an MBA (Finance) and has over seven years of experience in Retail Banking. Ketki specialises in covering articles around banking, insurance, personal finance, and mutual funds and has been doing it for over three years now.

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