Personal Loans are the best funding options for various lifestyle needs or urgent expenses during emergencies. Since these are unsecured loans, they require a lot of paperwork to get approval. However, advanced technological developments enable loan companies to approve loans with minimal documentation. Here, we will discuss the eligibility criteria to obtain an instant Personal Loan without documents from the comfort of your home and how to make it happen.
Eligibility Criteria for an Instant Personal Loan Online
Nowadays, most modern and reputed NBFCs support 100% digital loan procedures, allowing you to apply for a Personal Loan online without physical documents. While applying for a loan, you don’t need to visit the lender’s office even once for application, documentation, or any other purpose. You are good to go if you fulfil the lender’s eligibility criteria.
- Age: You must be between 21 to 58 years of age to qualify for an instant Personal Loan online.
- Occupation: Most reputed NBFCs offer online Personal Loans to both salaried and self-employed individuals.
- Citizenship: Most Indian loan companies provide Personal Loans to Indian citizens only.
- Work Experience: Ideally, salaried employees must have a work experience of at least six months in the same company. Self-employed individuals must be working in the same profession for at least two years.
- Income: Lenders check your monthly income to get an idea of your finances and determine your repayment capacity. A monthly income of Rs 15,000 is good enough to attract a Personal Loan sanction letter.
Getting a Personal Loan Without Documents
Many NBFCs need documentation based on your eligibility and creditworthiness to grant Personal Loans. To qualify for an instant Personal Loan without documents, you must improve your credibility by developing good financial habits. Here are a few tips to follow:
- Maintain a Healthy Credit Score: Credit score is important in showcasing your creditworthiness. Maintain a credit score above 700 to obtain a Personal Loan without documents.
- Pay All Dues on Time: If you already have loans or credit cards, always clear your EMIs and bills before the due date. Moreover, keep the credit utilisation rate low to signal punctuality and good financial health to the loan provider.
- Establish a Good Lender Relationship: Establish a good relationship with a lender by paying your EMIs on time and applying for another loan from that lender only. Since they are already aware of your credit behaviour, they may offer you a better loan plan without documents.
Getting a Personal Loan without Salary Slips
Loan providers usually require the last few months’ salary slips, an ITR certificate, and the application form as income proof. If you don’t have these documents, try any of these ways to prove regular income:
- Form-16: Obtain Form 16 from your employer and use it as tax deduction proof from your salary. Most lenders also accept Form 16 as income proof. For any reason, if you cannot furnish salary slips, submit the latest Form 16 as proof of income.
- Get a Guarantor: If you do not have any valid documents to prove your income, consider applying for a loan with a guarantor. The guarantor will provide their income proof and guarantee loan repayment in case you default. Therefore, getting a guarantor onboard is the best way to get a Personal Loan sanction letter.
- Maintain a Good Lender’s Relationship: Maintaining a long-standing relationship with a finance company attracts loan approval without income proof. Since the lender is already aware of your credit behaviour, they trust you and provide you with the required finance without unnecessary formalities.
Today, lending institutions have adopted digital technologies to offer better loans and services to their customers. Moreover, they simplify and accelerate the loan process by eliminating mundane documentation requirements and physical administrative tasks. Many now support paperless loan procedures, a boon to young consumers looking for funds during financial emergencies. Improve your eligibility and maintain a good credit rating to get an instant Personal Loan without documents.