3 Ways To Get Personal Loan Without Income Proof Instantly

The Covid -19 pandemic has led to many layoffs and financial crises for many salaried people. The current rise in fuel prices has increased the prices of groceries and travel expenses, ultimately increasing the cost of living, leaving very little to null for savings. Thus, when you have any sudden financial requirements, you might not have sufficient funds to handle those expenses at that instant. Hence, in that situation, the best solution is to consider taking a personal loan.

Personal loans are unsecured loans that do not require any collateral. You can get this loan instantly within 24 to 48 hours of approval. Hence, it is also considered an instant loan. Banks and lending institutions offer this loan based on your credit score, employment status, income level, etc. So, you will have to submit the required documents for KYC and income verification. But sometimes, due to unfortunate circumstances, you might be unable to submit your income proof. In such situations, you can follow alternate ways to prove that you have a stable income to repay your loan. Therefore, this article will give you a deeper understanding of instant personal loans and ways you can get a personal loan without income proof.

What Is An Instant Personal Loan?

Banks and NBFIs offer Personal Loans without collateral and are hence known as unsecured loans. You can use this loan for multiple reasons like medical expenses, travel expenses, business expansion, home renovation, wedding plans, etc. Moreover, if you are looking for loans at lower interest rates, you can apply using Buddy Loan. It is one of the largest loan aggregators that help you get loans from top lenders within a few hours. Using Buddy Score, you can also quickly check your credit score before applying for a personal loan.

Now, before going further, let us look at the eligibility criteria and required documents.

Eligibility Criteria

Sl.No.	Particulars	Description
1	Nationality	Indian
2	Age	21 to 60
3	Employment Status	Employed or Self-Employed
4	Minimum Income	INR 20,000 per month
5	Work Experience	Min 1 year completed
6	Credit Score	Above 750

Documents Required

For Salaried Employee:

Sl. No.	Particulars	Documents required
1	Proof of Identity	Aadhar Card, PAN Card, Driving License, Passport
2	Proof of Address	Electricity Bill, Water Bill, Passport
3	Proof of Income	Salaried: Bank statement for the past six months
4	Work experience	Employment Certificate for a minimum of 1-year experience

For Self-Employed:

Sl. No.	Particulars	Documents required
1	Proof of Identity	Aadhar Card, PAN Card, Driving License, Passport
2	Proof of Address	Aadhar Card, Electricity Bill, Water Bill, Passport
3	Proof of Income	Bank statement for the past three months Salary Slips of three months Income Tax Returns for the last three years Balance Sheet and Profit & Loss Statements for the last three years audited by a CA.

Also Read: Personal Loan for Salaried Employees Vs. Self-Employed 

Benefits Of Taking A Instant Personal Loan

Instant Personal Loans have a lot of advantages compared to secured loans. So, here are the benefits of taking a personal loan.

Benefits/ Features	Description
Multi-Purpose	You can use it for various financial requirements such as vacation plans, wedding expenses, medical emergencies, business expansion, etc.
Flexible Tenure	You can make repayment of your loan through EMIs and choose a tenure period starting from 6 months to 60 months. Hence, the tenure for repayment is flexible making it easier to pay off your debts.
Instant disbursal	The verification process is online and quick. So your loan amount will be disbursed within a few hours.
Zero collateral	Because it is an unsecured loan, you don’t have to submit any asset as security to get your loan approved.
Minimum documentation	You have to only submit minimum documents like Aadhar Card, PAN card, etc, to get your loan approved.
Paperless process	With digital processes, you do not have to visit the banks thereby making it more convenient to use.

How To Get An Instant Personal Loan Without Income Proof?

Sometimes, if you do not have regular documents for income proof, such as salary slips, you can provide proof of additional income. This way, you can

show that you have other sources to repay the personal loan without income proof.

Here are a few ways to get a loan without income proof.

Submit Form 16: You can submit Form 16 as proof of your income if you do not have a salary slip.

Show alternate source of income: You can submit proof of additional sources of income such as business income, house rent income, bank balance, the income of your parents or spouse, etc. In this way, you can show that you have alternative sources of income to repay your loan on time without defaulting.

Submit Collateral: Another way is to speak to the lender that you will provide collateral for the personal loan you want to take if you do not have proof of income.

Get a Guarantor: You can get a guarantor or a co-applicant with a personal loan without income proof to apply for the loan when you don’t have income proof. However, the guarantor should submit their proof of income when applying for the loan.

Tips to Get A Personal Loan Without Income Proof

Lenders will offer you loans even if you don’t have any documents if you are a credible borrower. So, here are a few tips to prove yourself as a credible borrower.

Repay your existing debts

When you start repaying all your pending debts, your credit score will gradually improve, thereby increasing your credibility.

Improve your credit score

You will be a highly credible and low-risk borrower if you score above 750. Therefore, you must improve and maintain your score by checking it using Buddy Score and getting a full report instantly. You can improve your score by making timely repayments, repaying your existing debts, keeping your old accounts open, etc.

Maintain your Debt-to-Income ratio

A Debt-to-Income ratio (DTI) indicates how you manage your present and past debts with your monthly income. As a result, lenders expect you to maintain this ratio to less than or equal to 50%.

Relationship with the lender

Lenders will trust you if you are already an existing customer with a good credit rating. And since the lender is already aware of your financial credibility, they will offer you an instant loan without any documents

How To Manage Your Payments Of A Personal Loan

Here is a list of factors to consider before you plan to apply for an instant cash loan.

Know the purpose for taking a loan: You will have a clear idea of your loan budget and repayment ability when you know the purpose. Moreover, you can also plan a proper budget according to the interest you will be paying.

Plan your budget: Before applying for a loan, research different lending institutions and calculate the EMI for repayment from websites available online. In this way, you can compare the interest rates banks offer to make a clear decision.

Repay on time: Once you get the loan amount, ensure you pay the EMI on time every month. Because if you miss out on any payments or make any late payments, your credit score will be affected negatively.

Use your loan for debt consolidation: If you have any outstanding debts to be paid, you can apply for a personal loan and use the amount to repay your past debts. You can easily repay multiple debts using a single loan amount.

Mistakes To Avoid While Applying For A Personal Loan

Signing the loan agreement without reading the “Terms and Conditions” carefully: It is important to read the Terms & Conditions before signing the loan agreement to avoid getting involved in any unnecessary disputes.

Not calculating your EMI beforehand: Before applying for a loan, make a clear budget on your loan amount and calculate your EMI. It will help you compare and choose the best interest rates.

Submitting multiple loan applications: When you apply for a loan from multiple lenders simultaneously, each lender conducts a credit check to evaluate your credit score. As a result, a hard inquiry is generated and reflected in your credit report, which ultimately affects the credit score.

Taking a loan more than required: Plan the amount of loan you require before you apply for the loan and avoid taking more than necessary. If you take more than required, you might miss out or make late payments. As a result, it will further affect your credibility.

Not being clear about your purpose: Know why you want to take a loan so you can plan your loan budget according to your repayment ability.

Remember This Before Applying For A Personal Loan

1. Credit Score: Lenders expect you to have a credit score above 750 as it shows that you can repay the loan on time. Moreover, check your credit report regularly to track your financial status. You can also check your score using Buddy Score and get a full credit report instantly.
2. Eligibility Criteria: Check if you meet the required eligibility criteria of the bank or lending institution you are applying for.
3. Documents: Submit all the mandatory documents for verification, such as Aadhar Card, PAN Card, Passport and Bank statements.
4. EMI: Calculate the EMI you have to repay beforehand to plan better.
5. Fill out the application form with accurate personal and professional details for cross-verification.

Also Read: Online Personal Loans? Remember to Check These Things

Summing Up

Personal loans are a life-saver when you need instant funds. And sometimes, even if you don’t have income proof, you can still avail of the loan using the ways mentioned above. Moreover, you can easily get a personal loan using Buddy Loan and get your loan amount within a few hours. You can also check your credit score using Buddy Score to know your creditworthiness.

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