Almost all banks in the country today offer easy application processes for individuals to get a personal loan against the name in their time of need. As an overview, one of the most important documents that a bank requires to test your eligibility to repay the loan amount in its given time is your proof of income. There are multiple other documents that are required, but this one is known to be most important for the banks and other lenders.
Most times, income proof is readily available with an employee as the employer ensures timely submission of the same to allow easy loan application processes for the people. However, since the outbreak of coronavirus and the announcement of work from home for almost all companies worldwide, a visible gap can be noted in this procedure. So, is it possible to get a loan without income proof in today’s competitive market dynamics? The answer is yes and the process of application is simpler and more hassle-free as you can also do it online. Tap here to know more about how you can get a loan without income proof.
In the absence of proof of income, other sources of income proof are considered equally valid by the bank or lender for personal loan applications. If you are wondering if is it illegal to pay personal expenses from business account, check Daily Prosper online.
Get a Loan Without Income Proof
To understand this new application process better, and to know all the other options you have to get a loan without income proof, find some important tips below.
Maintain A Good Credit Score
Out of all the loans available, a personal loan is a kind of unsecured credit loan which has flexible repayment options and requires minimal documentation. However, if you are unable to submit proof of income as one of the required documents, you are advised to maintain a high credit score of anything above 750. A credit score is the proof of your value and credit worthiness of being a borrower as it is made up of your death status, the payment status, etc.
Proof of Other Incomes
If you do not have direct proof of income to submit to the bank to get a loan, you can get a loan without income proof by submitting other sources of income that are applicable to you. This can include an income proof statement of your parents or guardian, your fixed deposit statement, the income statement of other sources like rent, etc. The main idea behind the requirement of proof of income by the lender is to assess whether you have the capability to repay the loan in the given time. Thus, any other source of income is also acceptable in the bank.
Apply With A NBFC
Even though it has been around for a long time, the recent awareness and acknowledgement of the non-banking financial companies that provide instant personal loans as per your needs and requirements are the new go-to today. If you want to learn without income proof, you can easily apply through an NBFC and get quick personal loans against your name. You will need to submit basic documents required along with getting your KYC updated in order to be eligible to get the loan.
Choose Your Current Bank
Out of all the banks that provide quick and convenient personal loans, when you lack one or a few of the documents required to qualify as an applicant, you should always refer to the bank you have your personal savings or current account in. This is because they are well aware of your history as a borrower and know your ability of timely repayment, which will help you get a loan without income proof more easily as compared to the other banks. Additionally, a known bank will help you benefit from a lower interest rate as well, given the long relationship you have with the bank.
Apply With A Co-Applicant or Guarantor
Not many people know about this but if you are looking for a personal loan, and do not have valid proof of income, you can apply with the co-applicant or guarantor who can back you up for the application. If you pick a guarantor to get a loan without income proof, your chances of approval or higher as the direct guarantee of the payment is shifted to a person with backed up resources for repayment. Similarly, when you choose and apply with a co-applicant, your repayment capability will be determined on the basis of the credibility of the co-applicant. This will also help the bank decide the amount of loan without income proof that can be given to you.
Overall, to conclude, the KYC requirements remain the same, whether you apply for a personal loan without income proof through a bank or through NBFC. However, the process of NBFC is faster and requires minimal steps for disbursal of the loan amount. Luckily, with digitisation, everything is possible online and so if you are looking for a personal loan without income proof, reach out to the lender or NBFC with any of the above-mentioned documents to get it approved easily.
