Personal Loan Without Documents
A personal loan is an unsecured debt that can be taken for emergencies as well as for reasons such as education expenses, home improvement, or for making a major purchase. Personal loans are unsecured as there is no collateral required. A personal loan is usually within a short span of one to five years. The repayment options are flexible, and are decided by the lender based on the borrower's credit history. Loan repayment is done every month via EMIs through post-dated cheques or directing your bank to debit the EMI by ECS (Electronic Clearing Services). Personal loans require fewer documents than other loans.
How to Get a Personal Loan without Documents and Income Proof:
Few financial institutions consider giving a home loan without documents and income proof, purely based on customer persona and relationship. If you have a good relationship with the bank based on your timely payments and clear credit records, then the bank may offer you a personal loan based on the details already available with the bank.
Following are some of the things you can follow in order to avail a documentation-free personal loan:
- Establish a good relationship with your bank by remaining loyal to it for all financial, and non-financial services. This helps in building trust with the bank which then decides your loan eligibility as well as your repayment capacity. If you are applying for a personal loan at the same bank, where your main operating account is located, it becomes easier for the bank to consider you eligible for a personal loan. As the bank is fully aware of all the transactions being made on your account, it helps them assess your creditworthiness.
- Pay all your dues on time with the bank, if you are holding a credit card with the bank. Paying all your credit card bills on time, puts you at a higher chance of availing a personal loan with the bank.
- Do not miss any payments associated with the bank, where you are applying for a personal loan. A missed payment is a sign of incapability of handling finances and therefore, banks, and lenders would ask you to provide a solid proof of income.
- Maintain a high credit score as it helps in building faith with the lender that you are a safe customer.
Banks like Citibank allow you to take personal loans of up to Rs.30 lakh in a span of 48 hours, without any documentation such as income proof, and address proof, provided your residence and office address is updated in the Citibank account. A personal loan, free of documentation, is a dream for most borrowers. With everything going online, from application to approval, documentation merely seems like a time taking step, which may be avoided in some exceptional cases.
How to get a personal loan without PAN card
When applying for a personal loan, as if the per the guidelines set by financial lenders, it is mandatory to submit one's PAN card as it is mandatory by the tax laws. However, it is possible to get a personal loan without the submission of the PAN card if the personal loan amount is small - anything below Rs.50,000. However, most financial lenders insist on the submission of the PAN card. If one has misplaced his/her PAN card at the time of applying for a personal loan, the PAN card number will suffice.
How to get a personal loan without Salary Account/Slips or Income Tax Returns certificate
If the personal loan applicant does not have regular income proof documents such as salary slips, IT returns, he/she should proof source of alternate income to prove to the lender that the repayment of the loan is possible. Listed below are a few ways applicants can get over this hurdle:
- Submit Form 16If for some reason submitting the ITR or salary slips is not a possibility, then the personal loan applicant can submit the latest Form 16 as proof.
- Submit alternate source of incomeThe personal loan applicant can also submit any other source of income from various business endeavors, housing rent income, bank balance, income of one's spouse or parents, etc.
- Submit collateralThough personal loans are generally unsecured, meaning that there is no need to submit collateral, if one does not have proof of income, he/she can negotiate with the bank to disburse the loan amount following the submission of collateral.
- Have a relationship with the bankIf the personal loan applicant has had a long-standing relationship with the bank, either holding a savings or current account with them, or has had borrower with them in the past and has made timely repayments, then the bank will not require income proof documents. In fact, if the personal loan applicant is a pre-approved customer, then he/she will not be required to submit documents and can apply for an instant personal loan.
- Get a guarantor on boardOne can also assign a guarantor when making the application. The guarantor will have to submit proof of his/her income and guarantee the payment of the personal loan if there is any default.
FAQs on Personal Loan Without Documents
- Do I need a job to qualify for a personal loan?
You can obtain a loan despite being unemployed. Lenders consider a variety of income sources, such as worker's compensation payments, alimony, and government benefits. You can be qualified for a secured loan with collateral in the form of property if you have no income at all.
- Can someone without credit history obtain a personal loan?
A personal loan is also available to you without a credit score. It is simple to apply for a modest loan with a guarantor if you are an application with a low credit score or none at all.
- Does obtaining a personal loan without supporting documentation have any drawbacks?
One possible drawback is that, in comparison to regular loans, loans without documentation could have higher interest rates and other costs. Furthermore, consumers might not have many options and could need to look into different lenders.
- How do I pick the best lender for an unsecured personal loan?
Think about things like interest rates, loan terms, fees, client ratings, and reputation when selecting a lender for a personal loan without supporting documentation. Comparing offers from several lenders is crucial in order to identify the greatest deal that meets your budget.
- How long does it take to get a personal loan approved without supporting documentation?
Since there is less paperwork required, personal loans approved without documentation usually have faster approval times than standard loans. While some lenders might approve a loan right away, others might need a few business days.
- If my credit score is poor, can I still obtain a personal loan without any documentation?
Even while certain lenders might provide personal loans with no documentation to consumers with less-than-perfect credit, the terms and conditions—such as the interest rate and loan amount—could not be as good as those given to borrowers with exceptional credit.
- What qualifications must one meet in order to be eligible for an undocumented personal loan?
A person's credit score, employment status, income stability, and outstanding debts are a few examples of eligibility requirements. Some lenders might additionally take into account things like resident status and age.
- How can I apply without any paperwork for a personal loan?
Usually, you can apply online for a personal loan without submitting any paperwork via the lender's mobile application or website. During the application process, you might need to provide basic financial and personal information on a form.
- How much can you borrow for a personal loan without any documentation?
The maximum loan amount varies based on your creditworthiness, the lender's policies, and other variables. It is imperative that you inquire directly with the lender about the maximum loan amount you are eligible for.
- What is the interest rate on undocumented personal loans?
Because the lender is taking on more risk when providing personal loans without documentation, interest rates may be higher than for regular personal loans. But since rates change amongst lenders, it's important to evaluate offers from several establishments.
Karishma VP has over a decade of experience in content writing which includes over five years specializing in the field of personal finance. Her career in BankBazaar has given her the opportunity to research and write on a wide variety of financial products ranging from credit cards and home loans to insurance policies and government schemes. She believes that an understanding of personal finance is an important step to leading an independent, empowered life. This has led to her being passionate about learning more about the BFSI sector and writing about it as clearly, concisely, and accurately as possible to make it accessible to a larger audience through BankBazaar.
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