Strategies to Get Personal Loan without Income Proof
By Anupama Deshpande | May 8, 2019

It is a known fact that if you are is carrying an income proof, it is going to be a smooth loan journey for getting personal loan. It is so because the lenders always want to make sure that the borrowers repay the loan without any default in timely manner. So if you are able to submit your personal loan application along with necessary documents and income proof then you will be granted the loan without any hassle but if you are unable to submit any income proof then there are very rare chances that you will get the personal loan.

Usually personal loan is offered to any salaried or self-employed based on their income. The rate of interest of personal loan also depends upon the income, employment type and employer with whom the borrower is working with.

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It has been seen that every commercial lender such as bank or NBFC will first ask the applicant about the income he/ she earns and also the proof of such income such as salary slip and income tax return (ITR). Income of any applicant is the major criterion to evaluate his/ her credit-worthiness which is the ability to repay the personal loan without default.

Now a question may arise that how to get a personal loan in absence of income proof. The answer is yes but in that case one will not be able to negotiate with the lender on attractive personal loan rates and to grab the best deal.

Still if you do not have proper income proof you can go through following strategies to get personal loan without income proof.

Peer to Peer (P2P) Lending Platform is a virtual platform which facilitates both the borrowers and lenders to interact directly using online services. It is an innovative and new-age marketplace giving opportunity to borrowers to avail loans with ease and to lenders to invest and earn much higher returns on their funds. It is good way to avail funds for those applicants, who do not have any collateral to pledge or do not have any income proof.

They are comparatively less strict than commercial banks and do not every time ask you to produce income proof for extending the personal loan.

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The co-applicant is the person who is applying for a personal loan with the borrower. Adding a co-applicant helps you increase your personal loan eligibility as the income of the co-applicant can be used to supplement your income. If the co-applicant has sufficient income proof then it will be easy for you to get the personal loan more easily.

You can go for a secured loan. A secured loan is a loan which is obtained against any collateral such as gold, house property, shares, fixed deposits, etc.

In such case, the lenders may agree to grant you a personal loan even in absence of income proof as they have the security against the money lent.

There are many private money lenders who do not want any income proof against personal loan instead they are more interested in getting higher interest rate as they expose to higher risk. However, it is the least recommended option due to involved bad recovery process.