Are you planning to get your home renovated? Do you want to take that vacation in Paris? Have you got medical bills that won’t stop coming? If you have answered yes to any of these questions, it is perhaps time to take a personal loan. These unsecured loans, offered by most banks and NBFCs at varying personal loan interest rates, can be used to finance a wide range of purchases and activities.
As with most loans, personal loans, too, come with specific documentation requirements, like salary slips, IT returns, etc. These documents, while readily available, can be difficult to procure for self-employed individuals owning small businesses. So, if you do not have a proof of income, can you apply for a personal loan? Read on to find out.
Getting a Personal Loan Without Proof of Income
Anyone, regardless of whether they have a proof of income, can apply for a personal loan and expect approval. Personal loan eligibility is not solely dependenton income proofs, and therefore even if you do not have one, you can look towards personal loans to address your monetary needs.
Tips for Taking a Personal Loan Without Income Proof
If it becomes clear that you will have to apply forpersonal loans without income proof,utilize the following tips.
- Maintain a good credit score
A credit score is one of the most significant factors deciding your personal loan eligibility with different lenders. If you do not have an income proof, maintaining a credit score of above 750 can be extremely beneficial.
- Use income from other sources while applying for the loan
If you or your household receives income from a variety of sources like rent, interest, etc., consider presenting their documents in place of Income Tax returns for your primary occupation. Seeing that you have more than one way to pay back the loan, banks and NBFCs will grant you finance more willingly.
- Try to find co-applicants or guarantors
If you do not have a proof of income, but someone in your immediate family does, then applying for the personal loan with a co-applicant has more chances of approval. Moreover, if you can ensure the presence of a guarantor while filling the application for personal loan for self-employed with no proof of income, it increases your approval chances manifold.
With the tips listed above, you should be able to successfully get approved for a personal loan for self-employed with no proof of income. For affordable personal loans with flexible repayment tenures, approach the financial institutions. The loan process is both online and offline, and you can use resources like personal loan emi calculator to check your tentative EMI.