Tips On How To Get Personal Loans Without Income Proof

Personal loans are perfect for individuals without adequate capital to cover necessary expenses. These loans allow them to raise immediate funds without collateral or extensive documentation.

Such personal expenditures commonly include paying for marriage, education, home renovation, vacation, etc. Borrowers prefer personal loans as they do not come with end-use restrictions for any purpose. Like other types of loans, the borrower is legally liable to repay the principal loan amount with interest to the lender within the loan tenure.

However, personal loans demand that the borrower submits income proof as a part of the loan application process. But can you take a personal loan without submitting income proof?

How Does A Person’s Income Affect The Personal Loan Approval?

Lenders such as banks and NBFCs offer loans to borrowers, which they have to repay through EMIs, which include a portion of the principal amount and the interest rate. This amount is predetermined based on the loan amount, interest rate, and loan tenure. However, before approving the personal loan, lenders want to ensure that the borrower’s monthly income is enough to cover the monthly EMIs.

Hence, lenders generally seek income proof to analyse the income pattern and offer the loan amount accordingly. The higher the monthly income, the higher the chances of loan approval with a lower interest rate.

How To Get Personal Loans Without Income Proof?

Lenders require income proof to grasp the creditworthiness of the borrower. Many have included the submission of income proof as an influential factor in their personal loan application. However, if you do not have income proof and want to take an instant personal loan without income proof, there are some factors you can consider.

• Income From Other Sources

Salaried employees get a monthly salary credited into their bank accounts from the employer, for which they can submit income proof. However, for individuals who do not earn a monthly salary but have alternate sources of income, it becomes difficult to present income proof.

If you want to take a personal loan without income proof, you can highlight your income from alternate sources such as rent, investments, etc. Once the lender knows you have a regular income from such sources, you may not have to present income proof.

• CIBIL Score

A CIBIL score of more than 750 indicates that you are financially healthy and creditworthy enough to repay the loan based on your past financial history. If you want to take an instant loan without income proof, you can ensure that you have a CIBIL score greater than 750. It will give you the negotiation power to approve your loan without submitting income proof.

• Relationship With The Lender

Lenders prefer borrowers with a savings or current account with their company or institution. As they have all the relevant documents, including income proof already, of the borrower submitted at the time of account opening. They can always review your financial condition based on the bank account, and you can take an instant personal loan without income proof.

• You Are An Existing Borrower Of The Lender

Borrowers prefer to take a personal loan from the lender from which they have taken a loan previously or have a current outstanding loan. In such cases, the lender also has all the relevant documents, including income proof, needed to complete the KYC and ensure that the borrower is financially capable of repaying the loan. If you take a personal loan from a lender with whom you have a previous or current relationship, you don’t have to submit income proof again.

Avail Of An Ideal Personal Loan With IIFL Finance

IIFL Finance is India’s leading financial services company that provides comprehensive and customised personal loans to fulfill your capital requirement. You can use the personal loan calculator to determine your repayment obligations. The personal loan offers instant funds up to Rs 5 lakh with a quick disbursal process. You can apply for the loan online or offline by visiting IIFL Finance nearest branch and verifying your KYC details.

FAQs:

Q.1: Do I need to submit income proof to take a personal loan with IIFL Finance?
Ans: Although submitting income proof is necessary to avail of a personal loan, you can get a loan without submitting income proof if you can showcase your creditworthiness positively or if you have an existing loan with IIFL Finance.

Q.2: Do I need collateral to take a personal loan from IIFL Finance?
Ans: No, you do not need to pledge any asset as collateral to take a loan from IIFL Finance.

Q.3: Can the personal loan be fully repaid before the tenure?
Ans: Yes, you can fully repay the personal loan anytime before the loan tenure.