What is a Personal Loan?
A personal loan is a loan given to a borrower by the lender to carry out private expenditures. The banks or financial institute grants a personal loan to the borrower for a stipulated period and interest rate. It’s given after checking the borrower’s credit score and ability to pay back the loan quickly. A personal loan is granted when the person has a steady flow of income in the bank account, and a fixed income keeps coming into the account. Personal loans are given without any security. You can now apply for a personal loan online as well. Having a salary slip eases the process of getting a personal loan. A salary slip proves that you have a fixed income coming to your account every month, and it’s safe to give you the loan.
But what about those who don’t have a salary slip? How will they get a personal loan?
- Personal loans can be given to someone who doesn’t have a salary slip. You can avail of loans without a salary slip.
- To get the loan without a salary slip, the borrower needs to show their bank transactions of the last six months. A bank statement acts as proof of all your transactions.
- You need to have at least 15,000 rupees in the bank account to fit the eligibility criteria. Less than that will not make you eligible for the personal loan you are looking for.
- Salary slip is not compulsory for all banks or financial institutes. So you should check with the bank if they need a salary slip for getting the personal loan.
- To get a Personal loan without a salary slip, you will need a good credit score. A salary slip acts like proof that you have an adequate flow of income in your bank account. Without a salary slip, it’s difficult to trust that the borrower will be able to pay back the sum taken as a loan. With a good credit score, the lender can be assured that you have a good history of paying back the bills and debts to the bank on time. This is why it’s essential to have a good credit score to ensure the lender is creditworthy.
- Personal loans usually don’t have security. However, if you are opting for a personal loan without the salary slip, one way to avail the loan is to keep guard. You can pledge your assets to get the loan.
- It would be best to show your salary slip to the bank to get the loan. If you don’t have one, you can offer any other alternate proof of your income to the bank. The income proof includes an income certificate, ITR, bank account statements, etc.
The Bottom Line:
If you are self-employed, you may need a personal loan to expand your business or use it for personal expenses. You can get a personal loan through the banks or financial institute that doesn’t require a salary slip. You can even apply for a loan by keeping collateral. By providing alternate income proof, you can get a personal loan. Check Finserv MARKETS for more. You can calculate your loan on an EMI calculator personal loan.