How to Get a Personal Loan Without a Bank Statement?
Personal loans are unsecured and short-term credit facilities that are sanctioned based on an individual’s credibility as a borrower. To establish credibility and repayment capability, a borrower needs to submit documents such as bank statements as income proof with the financial institution.
Financiers require documents representing an individual’s income when sanctioning unsecured advances such as personal loans to eliminate the risk of repayment default. However, there are exceptions when lenders advance a personal loan without bank statements.
Ways to Get an Instant Personal Loan without a Bank Statement in India
- Hold a high credit score
Holding a credit score above 750 increases your personal loan eligibility. Your credit score is a representation of your creditworthiness and indicates the risk you carry as a borrower to the respective financial institution. If you hold a CIBIL score above 750, the lender will consider you as a creditworthy borrower which improves chances of loan approval.
- Maintain a substantial repayment history
It is essential to maintain consistency in repayments of credit dues such as card bills and EMIs on previous and existing loans to develop a substantial repayment history. A robust history of steady and timely repayments backs your application for a personal loan without bank statements and improves loan approval chances.
- Provide your salary slips
Submit your salary slips as an income proof with your preferred financial institution during documentation for a personal loan.
- Establish and maintain a steady relationship with the lender
Maintaining a healthy relationship with your preferred financial institution can also help you avail a personal loan without a bank statement. You can also negotiate your loan interest rates and fetch better terms if you have a good relationship with your lender.
- Avoid missing out on repayments
Opt for a longer repayment tenor to reduce EMI obligations and ease your repayment. Avoiding missed EMI payments improves credibility as a borrower.
- Maintain low FOIR
A fixed-income-to-obligations ratio within 40%-50% improves the chances of loan approval. It represents a higher repayment capacity and a lower risk of default.
Barring bank statements, financial institutions require several other documents which are essential for loan approval. Collate the necessary documents beforehand to avoid any hassle during instant loan application processing.
Documents Required for a Personal Loan
Furnish the documents mentioned below during personal loan application:
- Aadhaar Card
- Voter’s ID card
- PAN card
- Driving License
- Utility bills
- Passport-sized photographs of the applicant
Salaried individuals need to furnish their salary slips and employee ID card to apply for a personal loan without bank documents successfully.
Financial institutions might require other relevant documents during application processing. Collate the necessary documents before applying for a personal loan for faster approval. Enjoy a paperless documentation process when you apply through a personal loan app.
In addition, you also need to meet certain eligibility criteria to apply for a personal loan.
Eligibility Criteria for a Personal Loan
For salaried individuals:
- Should be between the ages of 20 years to 60 years
- Must be an Indian resident
- Should be employed in the private or public sector, or with an MNC
In addition, individuals also need to hold a credit score above 750 to be eligible for an instant personal loan.
With this knowledge, you can apply for a personal loan without bank statements. Ensure to fulfil the other factors and increase your chances of approval.
Also Read:- How to Avail an Instant Loan Without Documents?