Personal Loan Without Income Proof: A Guide to Availing Loan for Self Employed Individuals
For anyone who does not have an asset or property in order to get a secured loan, a personal loan comes in handy for those individuals. One of the main requirements that many lenders ask for while sanctioning a personal loan is income proof. The income proof allows the lender to confirm and assess the borrower’s repayment ability. Furthermore, the amount of loan that can be sanctioned also depends on the borrower’s income.
Salaried employees can avail a personal loan by submitting their salary slip as income proof. The salary slip contains all the necessary details about the borrower’s income and hence, works as valid income proof. But do you know that you can also obtain a personal loan without income proof? Yes, in case you are a self-employed individual and do not have a salary slip, this article will help you to know the ways how you can avail a personal loan without income proof like a salary slip. You can read more about the same by following the link https://navi.com/blog/information-on-how-to-get-loan-without-income-proof/
Self-employed individuals can also avail a personal loan easily
How Self-employed Individuals Can Avail a Personal Loan
Here is a complete guide for self-employed individuals that will help them to avail a personal loan without income proof easily:
Keep a Record of Your Annual Income
It is true that lenders prefer individuals who have income proof while sanctioning a personal loan. Salaried employees face no hassle in this as they can produce their monthly salary slips easily. What can a self-employed individual do? Well, income proof is not limited to salary slips. If you can furnish any valid income proof document, you can also avail a personal loan without income proof like salary slip easily. If you are running a business, keep a record of all the transactions that are happening. Prepare a P&L report of your business, and use the same to file ITR every year. The income tax return is a valid income proof document for self-employed individuals. It allows them to avail a personal loan easily and at the best offers as the salaried employees enjoy.
Show the Regularity of Your Income
One of the most important things that self-employed individuals should remember is that furnishing only a year’s ITR is not enough as income proof. The salaried employees also need to submit salary slips of the last three months along with proof of employment continuity of atleast 1 year. The requirement is quite similar for self-employed individuals as well. If you are a self-employed individual and want to avail a personal loan without income proof, you need to produce atleast 2-3 years of ITR in order to show that your income is regular from your business. The ITR will do both the job- apart from working as income proof, the ITR of multiple years will also serve as proof for business continuity which will ensure the lender that your income is regular.
Add a Co-applicant or Guarantor
Adding a co-applicant or guarantor increases the approval chances the personal loan without income proof. A co-applicant or guarantor gives a high level of assurance to the lender that the loan will be repaid on time. If the lender is not ready to approve the loan with your existing business income, adding a co-applicant or guarantor is the best thing to do. Not only will it increase the loan approval chances but it will also help you to avail the best offers in terms of interest rate and amortization period.
Have all the Business Proof Documents
If you are a self-employed individual, you need to have all the business proof documents that the lender may ask for. For example, most lenders ask for the trade license or partnership deed, current account statement, ITR, etc. The final documentation requirement varies from lender to lender. For salaried individuals, their offer letter or the salary slip itself serves as proof of their employment. For self-employed individuals, on the other hand, their business is the aforementioned documents.
So we have seen how easy it is for self-employed individuals as well to avail a personal loan without income proof. If you are a self-employed individual and looking to get a personal loan without any hassle, the above-mentioned points will help you to get the loan sanctioned easily. A salary slip is not the only valid income proof while applying for a personal loan. Lenders have different document requirements for self-employed individuals by which they can also avail a loan as per their requirement effortlessly.