How to Get a Loan without Security and Income proof in an easy way?

How to Get a Loan without Security and Income proof in an easy way?

There are a few instances in your life when you urgently need a large pool of money to deal with the financial emergency you are facing. In such cases, you won’t have the option of taking the money from your parents or friends as it may not be possible to have a large amount at such short notice. In such conditions, a personal loan comes to your rescue. You can get this from any of the lenders providing the personal loans in our country. But for some people who don’t have a stable income and hence, lack any proof of income.

A lot of people have this misconception that it’s tough to opt for a personal l​ oan without security and income proof which is clearly not the case. There are several lenders that provide personal loans to self-employed individuals. So if you are someone who can not provide any income proof to lenders, you don’t need to worry a bit. In this article, we would be telling you about the ways by which you can get a loan without security and income proof. You would also be getting to know the reason behind the importance of income proof to get a personal loan. So, keep reading!

Why Do Lenders ask for an Income Proof and what is the importance of it?

First of all, understand that a loan without security is indeed a personal loan, which comes under the category of unsecured loans. This means you don’t need to pledge any kind of security against it. Lenders will give you the loan based on your overall profile and ​CIBIL score​. Now coming to the part of income proof, you must be thinking about the importance of it.

Well, the answer lies in the unsecured nature of the p ​ ersonal loan​. When a lender provides a personal loan to any individual without any security, there is a risk known as the credit risk. This risk derives from the possibility of the lender not paying back the loan amount. So to minimize the risk as much as possible, lenders ensure that the borrower has a certain income proof to show that he or she is capable of repaying the loan. Income proof of an individual shows the steady and regular source of income in hand. That is the main reason behind lenders asking for income proof before giving the loan amount.

What is the Way to Get a Loan without Security and Income Proof?

As we told about how any lender’s first priority is to check the income proof before providing the ​home loan​. In order to get a loan without security and income proof, you must have something to show your repayment capability. A lot of people do not get a salary directly into their bank accounts. Hence, it is tough for them to show their salary slip as income proof. And lenders are usually very hesitant to give them the loan without security and income proof.

The first way by which you can get the loan without any income proof is to ask for a salary certificate from your employer and show it to the lender. A company of any scale can issue a salary certificate to the employee. This will work as a tool to show your repayment capability to the lender.

One of the ways to get a loan without showing a salary slip to the lender is to show the bank statement which will show your salary getting transferred through a cheque. But it’s not as easy as it seems. Since the transaction will not have anything like the Salary, the lender might doubt it a bit. So you will have to submit a photocopy of your cheque which will have all the details regarding your employment. With the help of it, you can get a personal loan without any income proof.