Unsecured Personal Loan Without a Proof of Income: A Personal Loan is a form of credit that may be used for a variety of things. Whether you wish to plan a trip, are experiencing a financial or medical emergency, or have outstanding bills, this loan may help you in every case. Another advantage of obtaining this loan is that it is unsecured. As a result, you do not need to offer any collateral to obtain it.
However, in order to obtain this loan, you must qualify for its eligibility criteria. Your CIBIL score is one of the most critical aspects that any lender evaluates before approving or rejecting the loan application. It also affects the interest rate of Personal Loans.
There are several types of Personal Loans, including Wedding Loan, Pension Loan, Festival Loan, etc., that you can apply for to fulfil your requirements.
Most of the lenders ask for income proof to assess your eligibility. But what if you don’t have your salary slips? Would you be able to secure a Personal Loan without income proof? The answer is yes. Though most of the lenders ask for salary slips, there are a few exceptions as well who give Personal Loan without salary slips.
Let’s look at the tips you can follow to get an unsecured Personal Loan without income proof.
Apply for a Joint Loan
You can apply for a Joint Loan with a person having a good credit score. This will help the lender see you as a trustworthy person as having a joint applicant with a good credit score will guarantee you will repay the amount on time.
Take Loan on Another Person’s Name
You can also apply for a Personal Loan in another person’s name if they consent. That person will serve as the guarantor for the lender. The lender may agree to offer you the loan based on the guarantor’s credit score.
However, this individual must be a member of your immediate family, such as a parent, spouse, or sibling. They must agree to be accountable for your debt payment as part of the loan agreement.
Try to Provide Collateral
A Personal Loan is unsecured in nature; hence no security needs to be provided. But, if you cannot provide your salary slips, you can offer any collateral to procure this loan. By doing so, you will be able to gain the trust of your lender. The institution will be confident about the loan repayment since they will know that they can seize and sell your collateral to reduce the risk of default.
Obtain it at a High-Interest Rate
If you are unable to provide income proof, any collateral, or a guarantor, the lender will take a significant risk in approving your loan application without evidence of income. As a result, the lender tries to compensate for this risk by giving you the loan at a high-interest rate. One strategy to prevent such high-interest rates is to approach a lender with whom you have a good connection. You might not have to pay such a hefty fee if you have the lender’s trust.
Maintain a Good Credit Score
A credit score is a three-digit number ranging from 300 to 900 that shows your creditworthiness. A score above 750 is deemed as a good number. Maintaining a good credit score will help show your buying behaviour and good financial health. As a result, you will be able to gain the lender’s trust, which will help to procure a Personal Loan hassle-free.
A Personal Loan is the finest way to get out of any financial bind. Furthermore, with the assistance of the aforementioned information, you will be able to learn about the procedures that must be followed in order to obtain this loan without providing proof of income.
However, before applying for this loan, you must check your personal loan eligibility criteria in order to avoid rejection and complete the process hassle-free.