A personal loan can be availed to finance lifestyle needs or to meet urgent expenses during an emergency. Personal loans are unsecured in nature, hence a lot of paperwork was required to get an approval, earlier. However, technological advancements have enabled lenders to approve personal loans with minimal documentation. In this article, we are going to discuss how you can avail a Loans Without Employment Verification.
How to Get a Personal Loan without Documents and Income Proof
Many lenders, particularly NBFCs and some private sector banks, are willing to grant personal loans without documentation based on their relationship with the applicant. In order to be eligible for a document-free personal loan, you need to follow good financial habits that improve your creditworthiness in the eyes of the lender. Following are some of the things that you should keep in mind if you wish to take out a personal loan without documentation:
- Maintain a Healthy Credit Score: Your credit score is the single most important indicator of your creditworthiness. It is, therefore, advisable to maintain a good credit score, ideally more than 750, to be eligible for document-free personal loans.
- Pay All Your Dues on Time: If you hold a credit card, you must ensure that you always clear your dues before the payment due date and keep the credit utilisation below 30%. By doing so, you signal good financial health and punctuality to the lender.
- Establish a Good Relationship with the Lender: If you apply for an instant document-free personal loan with a lender you already have a good relationship with, you are more likely to get the approval. For example, you are more likely to get a personal loan without documentation from a bank you already have an operating account with.
- Avail Pre-approved Loans: If you have a good credit profile, some of the lenders might even offer you pre-approved personal loans up to a certain amount. As these loans are already approved, no documentation is required while applying.
How to Get a Personal Loan without a PAN Card
For most personal loans, it is mandatory to submit your PAN along with your loan application. However, some lenders may allow you to avail personal loans of small amounts, i.e. less than ₹50,000, without asking you to submit your PAN. If you have misplaced your PAN card, you can use this facility to get personal loans of small amounts.
How to Get Instant Loan without Salary Slips or Income Tax Returns Certificate
Since a personal loan is an unsecured loan, lenders usually require you to submit your last three months’ salary slips or income tax returns (ITR) certificate along with your loan application as proof of income. If, for some reason, submitting salary slips of IT returns certificate is not a possibility, you may try one of the following ways to prove your income:
- Submit Form-16: If you are a salaried employee, you get a Form 16 from your employer as proof of tax deduction from your salary. Form 16, in most cases, is also accepted as proof of income. So, if for some reason, you are unable to furnish your salary slips, you can submit the latest Form 16 to the lender as proof of income.
- Get a Guarantor Onboard: If you are unable to furnish any document to prove your income, you can consider applying with a guarantor. The guarantor would need to submit their proof of income and guarantee the loan repayment to the lender in case you default.
- Maintain a Good Relationship with the Lender: If you have a long-standing relationship with a bank, say you have a credit card issued by the bank, you can expect a loan approval without any need to submit a proof of income.