How to Get a Personal Loan Without a Salary Slip in India?

31 Mar 2022

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Personal loans can prove helpful in consolidating your existing debts and helping you meet financial emergencies. You can even procure a personal loan to finance special occasions such as a marriage ceremony or an anniversary holiday. It is one of the most popular types of loans available in the market today.

A personal loan is an unsecured type of a loan. This means that it does not need you to pledge an asset as collateral in exchange of the loan amount. The lender generally provides you with the loan simply by evaluating and confirming your source of income.

You would require a few essential documents for the personal loan application process. These usually include your salary slip, proof of identity, proof of residence, and bank statement of the past three months. However, if you are self-employed or unemployed, you might not have a salary slip. This might make you wonder – ‘Can I get personal loan without salary slip?’

The answer is yes! This is good news for those who work as freelancers or even people who are between jobs at the moment. Many banks offer instant loans for unemployed people. This way, everyone can get access to funding that they need as long as they have their documents in order.

So, let’s see how you can get a personal loan without salary slip.

Provide proof of an alternate source of income

A salary slip is proof of a stable income. The lender requires you to provide a salary slip because they want assurance about the repayment of the debt. If you are a freelancer, a business owner, a contractor, or anyone as such who does not receive a salary slip, you can easily get a personal loan by providing the lender an alternate proof of stable income. Income certificates, ITR or form 16, and bank account statements are some of the most commonly accepted documents in place of a salary slip. Providing any of these documents can help you get an instant personal loan approval as per the bank’s timelines for the process. So, make sure to keep all these documents safely as you will need them when applying for a loan.

Maintain a good CIBIL score

Your CIBIL score is essentially the measure of your creditworthiness. It reflects your history of repayment, your credit handling capabilities, and the status of your existing debts. Your CIBIL score gives the lender an idea about your possible approach to loan EMIs. If you wish to get a loan without salary slip and bank statement, maintaining a good CIBIL score is particularly important. Generally, having a CIBIL score above 750 is an indication of a responsible borrower. The CIBIL score is also a key factor in determining the interest rate that is charged on your loan. Thus, having a good score also helps you procure a personal loan at a lower interest rate.

Offer collateral as security

You can also offer to pledge an asset to the lender when applying for a personal loan. This will help in giving the lender a sense of security about the repayment of the debt. Assets such as gold, high valued fixed deposits, mutual fund units, and real estate can be used as collateral for a personal loan. However, you must check with the lender if they sanction asset-backed loans. You should also get an understanding of the assets that are accepted by the lender. The acceptance of your collateral as a security for the loan would depend on its total value. If the value of the collateral offered is more than the personal loan required, you have better chances of getting your personal loan approved. However, do remember that defaulting on your EMI payments might force the lender to seize your asset. Thus, only provide collateral if you are confident on your capability to repay the debt.

Apply for the loan with a co-applicant

A co-applicant is someone who takes the responsibility of repayment of the debt along with you. Applying for a personal loan with a creditworthy co-applicant increases the chances of your application being approved by the lender. Due to the co-applicant's steady income and creditworthiness, the lender gains confidence in your capability to repay the debt. If you default on your EMI payment, the lender can trust the co-applicant to fill in the gap. As a result of this, the chances of your loan being sanctioned increases quite significantly. This can help you procure the personal loan on much easier terms. It is important to keep in mind that if you along with the co-applicant default, both of your credit scores are negatively affected.

Maintain a good rapport with the lender

Lending money requires trust. The lender must trust that the debt will be repaid responsibly by the borrower. Paying your EMIs on or before the due date, offering to pledge collateral, being polite towards the lender, providing accurate details about yourself, and maintaining transparency can help the lender gain trust in your capability to repay the loan. If you have previously procured a loan from the lender or have an already running account with them, things can work in your favour. This is because the previously completed transactions help the loan provider gauge your creditworthiness without requiring any additional documents. If you have a good rapport with your lender, you can also apply for a personal loan on Aadhaar card without salary slip.

What are the documents required to get a personal loan without salary slip?

When applying for a personal loan, you will need to submit certain documents for the lender to evaluate. Here are the documents that are needed if you are applying for a personal loan without a salary slip -

  • A document that is a proof of your identity, such as your passport, driving license or Aadhaar card
  • A document that is a proof of your residential address, such as a utilities bill that is not more than three months old, passport or a leave and licence agreement
  • Documents that act as a proof of your income, such as like ITR or form 16, audited financials of past two years, or income certificate
  • Your bank statement of past 6 months
  • Office address proof for business owners
  • Document that serves as a proof of ownership of the office for business owners
  • Proof of continuity of business for business owners and freelancers

In addition to these documents, you will also have to submit two passport size photographs.

Do note that the above-mentioned documents are commonly required by the lenders. However, there can be changes in the list of documents depending on your financial situation and the lender’s requirements. Hence, it is best to check with the loan provider about the documents that they require to consider you eligible for a personal loan.

If a co-applicant is involved, they too would need to provide documents as required by the lender.


Your creditworthiness plays a vital role in determining your eligibility for a personal loan. Thus, if you are looking to get an instant personal loan without salary slip, you need to build trust and confidence in the lender about your repayment capabilities. That way, you will come across as a responsible borrower. Do remember to also check the loan eligibility criteria, EMIs, and tenure of the loan before you apply.

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Gold Loan vs Personal Loan - Which is Better & Why?

A home not only provides a roof over your head, but also doubles up as an investment. Your property can be sold for money at some point in the future. It can also function as collateral for a loan. Home loan is one of the best ways to finance the purchase of your dream flat or house. A home loan helps you safeguard your savings and gives you all the required flexibility to repay the cost of your property with comfort and ease by the way of EMI.
Now, there are so many options of home loans available out there. Choosing just one among all these can be quite confusing. To help you get the best option, here are a few home loan tips that can prove helpful.

1. Check your CIBIL score
Home loans are typically of high amounts and long tenures; thus, they can only be given to individuals who have a good credit history. The minimum home loan credit score required by most of the banks in India is ranges between 650-750. Furthermore, your CIBIL score is directly proportional to the loan amount you are eligible for. This means that having a higher CIBIL score helps you procure loans of higher amount. Generally, having a CIBIL score of 750 and above is considered ideal for procuring a good and substantial value of a home loan. If you check your CIBIL score and find it to be below 650 or just at par with 650, it is better to work on increasing your score before applying for a home loan. Having a good CIBIL score can also help you procure a loan at a relatively lower interest rate.
It is recommended to check your CIBIL score every 3 to 6 months. This will help you keep track of your creditworthiness and devise a strategy to increase your score.
2. Start saving for a down payment
It is important to plan your finances and save up for the down payment before initiating your application for a home loan. This is, perhaps, the best home loan advice that anyone can give you. Lenders typically require you to pay 10% to 30% of the total purchase value of the house or property as down payment depending on your loan amount.
With increasing expenses, it can be quite difficult to save for your home loan down payment. However, making small changes in your monthly budget can ensure that a portion of your income is put aside in a savings account/Investment account etc. to build a corpus for the down payment.

3. Get your financial documents in order
When you take a home loan, you will be required to provide your lender with certain documents such as your recent salary slips, ITRs, and bank account statements, among other paperwork. It helps to keep these documents ready in advance so that you do not have to rush at the eleventh hour to find what you need.
The list of documents required for a home loan can vary between lenders. The documents required can change slightly depending on whether you are salaried or self-employed. Hence, it is better to check with the lender about the records that are required by them. You can easily get a list of required documents by visiting the lender’s website or by calling them up directly.

4. Use a home loan EMI calculator
Understanding your EMI payments is one of the most important home loan repayment tips to keep in mind. Calculating your monthly EMI payments before applying for a home loan can help you avoid taking on debt that you cannot afford to repay.
EMI calculations are dependent upon the interest rate charged and tenure of the loan among many other factors; hence, EMIs are not that easy to calculate manually. Fortunately, you can use the lender’s home loan EMI calculators online to get an idea of the loan amount that you can afford to borrow.

5. Select the right type of home loan
There are many different types of home loans offered by every lender. Bank of Baroda offers its customers different types of home loans including top up loan, home improvement loan, and a home loan takeover scheme, among others. Each type of home loan offers different benefits to borrowers. Hence, it is better to compare bank loans and choose the right home loan that best suits your needs.
When taking a home loan, you can also choose between a fixed interest rate home loan or a floating interest rate home loan. While a fixed interest rate loan will have a constant interest rate throughout the loan tenure, the floating interest rate will see the interest rate change as per the market.

6. Compare the different home loan offers
The cost of procuring a home loan varies between lenders too. When selecting a home loan, you should consider the interest rate charged, home loan processing fees, application fees, technical valuation charges and other such expenses before starting your application process.
To get the best home loan in 2022, do make sure to compare the different loan offers and the other ancillary costs that are associated with borrowing. This research will help you make a smart choice. Remember that a home loan is debt that you take for a long term – generally between 20 to 30 years. So, you would want to pick the best loan provider who fulfils your financial needs for peace of mind.

7. Stay connected with your lender
After you submit your loan application, the lender may require some additional information from you before processing it ahead. Giving quick responses to the lender will help you get the loan amount disbursed swiftly.
It is also imperative to stay in touch with your lender throughout the loan tenure. This will help you build trust with the lender and get the timely help if needed.

8. Keep your credit score maintained during the loan processing period
Lenders typically check your credit score before accepting your loan application. However, they can also pull up your scores again before sanctioning the loan. This helps them ensure that you are a creditworthy individual and are consistent in repaying your debts. Hence, do not get lax on your payments after the lender has accepted your home loan application. Rather, pay more attention to your credit card bills and ensure that they are paid on time. It is also better to avoid applying for new loans until your home loan is sanctioned. This will help you maintain your credit score.

9. Read all the loan related documents carefully
It is particularly important to understand the different terms and conditions of the home loan before signing the documents. Ensure that you go through the documents and get comprehensive knowledge of what you are signing up for. You can contact your lender and ask them for any help you need in understanding the fine print.

How to Pay Off Your Personal Loan Quickly?

A personal loan can prove to be a boon in helping you meet planned and unplanned expenses. Many borrowers often prefer personal loans over other types of loans as these loans are apt for all purposes. Whether you need to fund your home renovation or take that long-overdue family vacation, a personal loan can help fund a variety of expenses.

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