Personal loans are one of the most sought-after credit options that does not require borrowers to pledge security to avail it. Additionally, borrowers are entitled to use the loan value for multiple purposes and fulfil their requirements accordingly.
Nevertheless, to enjoy such benefits, loan applicants must meet specific pre-fixed terms and provide substantial documents to prove their eligibility and help lending institutions to verify the same. Though such formalities make the loan process cumbersome, applicants can avail an personal loan without documents in a few steps.
Personal loan without documents
Here’s how intending borrowers can avail a personal loan without these documents –
Without PAN card
As per tax laws, PAN card is arguably one of the most important documents required while applying for a personal loan. Nevertheless, applicants can manage to avail a personal loan without submitting their PAN card, given the loan amount they have applied for is below Rs.50000.
Alternatively, if applicants have misplaced their PAN card during the loan application process, they may provide their PAN details.
Notably, not all financial institutions entertain this practice. Therefore, individuals must find out beforehand if the PAN card is mandatory to avail a loan from their preferred NBFC and then proceed accordingly.
Without salary slips or ITR
Loan applicants who do not possess documents that serve as a regular income proof like Income Tax Returns or salary slips must submit an alternative source of income while applying.
Applicants can submit these following documents instead –
Income proof of spouse or parents
Rent bill as income proof
Usually, some lending institutions extend a personal loan to applicants without going through a lengthy personal verification process. However, such a facility is mostly provided to applicants who are in the good books of the financial institution.
Steps to secure a personal loan with minimal documentation
Following are some other ways to avail a personal loan with minimum documents –
Pay off outstanding debt
Individuals should make it a point to enhance their loan applications by paying credit card bills on time and clearing off existing debt. Individuals who pay their bills on time and have paid off their previously availed loan on time would be regarded as a creditworthy customer.
It will enable applicants to create a favourable image in front of the lending institution and will further improve their credit record largely. Consequently, such customers would be more likely to avail quick loan approval for a personal loan without documents from their existing financial institution.
Improve high credit score
Similarly, applicants should endeavour to improve their credit score. A high CIBIL score indicates that an individual is creditworthy and repays debts on time. This will directly work in favour of applicants and will allow them to fetch substantial loan value without going through a cumbersome documentation process. Meanwhile, individuals should find out more about the things they can do to improve their credit score.
Opt for a lender who follows an instant approval process
Lending institutions that follow an instant approval process are more likely to keep the personal loan verification process short and simple. It is mainly because the online process facilitates the process of application and verification and in turn, relaxes the process of documentation.
Also, financial institutions like Bajaj Finserv extend the facility of applying for a personal loan online and subsequently, approve the loan plea and disburse the funds quickly as well.
They also extend pre-approved offers on multiple financial products and make the process of availing credit significantly simpler and convenient. For instance, such offers are mostly extended on financial products like personal loans, business loans, etc. You too can check your pre-approved offers in a few seconds by entering personal details like name and contact information.
Assign a guarantor
Loan applicants can secure a guarantor and avail a personal loan without document through their help. Notably, an ideal guarantor would be someone who has an excellent credit history, a high credit score and a steady source of income. They are also required to submit a proof of income and then proceed to fulfil the application procedure.
Although the personal loan is unsecured credit, applicants may pledge collateral to negotiate with the lending institution to approve the personal loan without document. However, a clean credit history, high credit score and a stable source of income will be more useful for securing the credit without the need for a tedious documentation process.