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Here’s How You Can Get Personal Loan without Income Slips

If you want to qualify for a 1 lakh personal loan, 2 lakh personal loan or loan of any amount of up to Rs 40 lakh, the prime need that is checked before providing you with the loan proceeds is your past repayment record. More so over, for a personal loan as the recovery risk is high in the absence of the collateral, your income and credit score are the major metrics to understand your repayment potential. Here’s why your income slips are made a compulsory document for proceeding with your loan application. How to avail a loan with zero salary slips and is it possible to avail a personal loan when you do not have any income slips is the major concern of professionals or individuals who are by nature self-employed. With the alternate income documents or proof, it may be possible for both self-employed and salaried individuals to avail a personal loan with zero need to provide any salary slips.

How to avail a personal loan with zero income slips?

There are various individuals who work on monthly income, but they have zero records like income documents that they are drawing a salary. In such scenarios, how can you get a personal loan with zero salary slips?

Lenders tend to assess your financial profile of you as an applicant to understand your repayment potential before coming to a final credit decision. Analysing your income slips is one of the ways of assessing your financial strength. However, have any idea what would you do if you do not have salary slips to show your repayment capacity? There are indeed various other kinds of documents using which you can vouch for your financial strength. Even an individual who collects income through cash will hold a savings account wherein he/she would deposit the drawn income. A constant cash deposit continuously on the same date each month comes across as proof of the income drawn. So, an account passbook, bank statement, ITR or form 16 can be provided as proof of income if you have no salary slips for availing a personal loan.

Also Check: 2 Lakh Personal Loan

If you are a self-employed professional or individual, audited financial statements such as profit and loss accounts, and balance sheets along with income tax returns with income calculations may serve as income proof for availing a personal loan with zero income slips.

How can you get a personal loan without providing a bank statement?

In the non-presence of income slips, you still can get a personal loan by providing alternate income proof in the form of bank statements, particularly in the case you are self-employed. Self-employed professionals will require a bank account to conduct business transactions by consolidating the service or sales receipt routed via bank. Through this, the lender can simply get a rough idea regarding your company’s turnover. Likewise, in the scenario of salaried, the income is routed via a salary account and so using bank statements, a lender can analyse your monthly income as a loan applicant.

But the question is “how can you take up a personal loan with zero need for salary slips or bank statements?”

If you have no bank statements, you can still place an application for a personal loan along with the ITRs and audited financial statements with income calculations in case you are a self-employed individual. A salaried individual can get form 16 in the form of income proof. Such alternate documents can help validate your income. Establishing a strong relationship with your lender as well as maintaining a strong score will assist in such circumstances.

Yet the next way to avail a personal loan with zero income slips and bank account statements can be by adding in a co-applicant having a steady income source and a high score and a good credit profile. Note that the co-applicant holds the same responsibility as the primary loan borrower for making the loan repayments on time. The income of co-applicants inculcates confidence in the lender regarding your potential to make repayment of the borrowed loan proceeds on time. So, the co-applicant’s credibility comes across as a yardstick to determine your eligibility for a personal loan.

Other important documents required to get a personal loan with zero need for income slips – 

In the case you are a freelancer, a self-employed individual or are hired on a contractual basis, you will require applying for a personal loan with zero need for providing income slips. So, how to avail a personal loan with zero need for providing any income documents or salary slips? Yes, it is, in such a scenario, you must consider submitting the documents as mentioned below –

Bank account statement 

Even if you receive your income in the form of cash and there’s no record linked with your monthly emoluments, it is a must for you to deposit the income received as cash into your bank account. Constant deposits of the same amount on the same date every month are looked upon as a good enough deal to showcase your stable flow of income. Professionals and self-employed individuals tend to route their cash transactions via bank accounts. Hence, it is simpler for you to produce a bank account statement if you are a self-employed individual.

Employer certificate 

Employer’s certificate on the letterhead shows your association with the company. The certificate must contain information such as your name, employment information, and monthly emoluments. It shows your job and income stability.

Income tax returns or ITR 

In the case, you are an income taxpayer, then you can show your ITR for the past two or three years to reveal your income stability.

Form 16 

Form 16 issued by your employer shows information about your overall income, tax deductions, and other important deductions for a specific financial year. It is a valid proof of income, which you can submit when applying for a personal loan with zero income slips.

Audited financial statement 

Audited financial statements such as profit and loss and balance sheet account show the financial health of your organisation if you are an entrepreneur. You can show these documents to the lender to avail the personal loan proceeds of your requirement.

Alongside the above-stated income documents, you must submit KYC documents too. These KYC documents include a PAN card, Aadhaar card, driving license, and passport, to show your identity proof and residential proof.