To measure your repayment capacity lenders check your financial profile for the loan approval process. One of the parts of the process includes verifying your income through salary slips. But, how can you avail of a personal loan if the individual is a self-employed professional?
A personal loan is an unsecured form of loan that allows you to cover many types of personal expenses. Availing personal loan without a salary slip is not a problem for salaried individuals, self-employed persons facing trouble getting a personal loan.
Here are a few ways to get an instant personal loan without salary slips are as follows:-
1. Providing a substitute income proof
You cannot receive salary slips if you are self-employed (contractor, freelancer, income received in cash, or active businessman). In such a situation, one of the easiest ways to get a personal loan for individuals is by providing alternate income proof to the lender. This can include documents like Form 16, a bank account statement, ITR, or an income certificate. These documents assure your steady income.
2. Maintain a good CIBIL score
You should need to keep your credit score high in every situation and make payments on time whether you’re self-employed, facing a situation of job loss, or not having a salary slip for the past few months. The CIBIL score above 700 shows your disciplined behaviour in EMIs payments, your ability to handle debt, and your repayment history with your current debt status. A good score creates faith for you in the lender’s mind, as per this faith lender approves your personal loan at a reasonable interest rate without a salary slip.
3. Find a Lender with simple Eligibility Terms and Conditions
When you’re seeking a personal loan without a salary slip, apply with the lender whose personal loan eligibility criteria, documentation, verification, and disbursement process are simple and their policies are liberal.
4. Maintaining good relations with the bank
If you have built strong relations with your bank, you will not be required to provide a large list of documents for applying for a personal loan. A strong relationship with the bank can be built if you already have an account (savings or current) with the bank and you’re a frequent visitor to this bank.
If you have also taken a loan from the bank in the past or owned a credit card and paid all dues on time, you have an excellent credit record with the bank. In such a circumstance, the bank will approve your instant personal loan hassle-free without a salary slip.
5. Offer an asset to pledge as a security
If you lack the financial strength in the present scenario you can apply for a personal loan by pledging collateral security. Although a personal loan does not require any collateral, you can offer an asset as security like- gold, FDs, mutual funds, etc. These assets can be including any high-value investments. If the lender approves your security, you can instantly get your personal loan without a salary slip.
Ensure that you pay your dues consistently and on time. Late payment and default on your EMIs payment might force the bank to seize your pledged asset.
6. Apply jointly with a co-applicant with a steady income
Still, you are facing difficulty, it is also the option left for you to apply for a personal loan with someone (spouse/family/relatives) that is a salaried individual and has a steady income. It enhances the chances of loan approval. Must ensure that you have done all the research from your end before applying for a personal loan.