A personal loan is a versatile resource that you can use for any purpose, be it personal or professional. It is a collateral-free loan that a lender offers to you based on your credit history, income, and repayment ability. However, since it is unsecured, lenders require you to produce certain documents that showcase your creditworthiness and repayment ability.
One such important document for salaried borrowers is income proof, which is typically your salary slip. However, it is possible that your employer pays your salary in cash and doesn't issue salary slips. But this doesn't mean that you can't get a personal loan. Many lenders have started offering a personal loan without a salary account to give you access to the required funding. Read on to know the five ways you can apply for a personal loan with a cash salary.
1. Submit bank statements
If your employer pays your salary in cash, you might deposit it in your personal savings account each month. Further, you will withdraw from the said account to meet regular expenses or use it to make online purchases. You can produce a bank account statement if you don't have a salary slip to prove income. Typically, lenders request you to submit at least the last three months bank statements. A list of transaction dates and stable input and output of cash from this account will bode well for your application.
2. Submit income tax returns
Without a salary slip, you can submit your income tax return to the lender as income proof. If you have been paying your taxes regularly, your IT return will support your application.
Additional Read: How much personal loan do you get on salary?
3. Submit a letter from your employer
Apart from the above, you can also request your employer to attest that they pay your salary. A statement on company letterhead, with the authorised signature of your employer, clearly stating your salary amount and the date at which you receive it every month will help you build your case.
4. Submit your offer letter or salary vouchers
You can also produce your offer letter as supporting income proof. However, an offer letter doesn't suffice as it only states the salary on offer and does not establish that you have a regular source of income. So, in addition to this, produce salary vouchers to prove that you earn an adequate income with which you can repay the loan. Getting a voucher will not be a problem because if your employer pays you in cash, they will request you to sign a voucher each month for internal records. Furnish copies of such vouchers to prove you have a stable job and income.
5. Avail of a loan against investments
If none of these options work for you, avail of a personal loan by pledging investments such as gold, fixed deposits, mutual funds, and other securities as collateral. Lenders accept them as security and offer a sanction based on the loan to value ratio.
Additional Read: Check CIBIL score offline and online?
Lastly, maintain a good credit score to avail a personal loan on cash salary at competitive interest rates. To get a personal loan basis, simple eligibility criteria, and minimal documentation, apply with leading institutions like Bajaj Finserv. Here, you can access a sanction of up to Rs. 25 lakh at nominal interest rates in just 24 hours!
Check your pre-approved personal loan offer to view customised deals and then apply in a single step for expedited financing.
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