What are the types of documents you should provide while applying for a personal loan without a payslip


Going for a personal loan can be enticing at times, especially when you do not have to present collateral. Also, with a personal loan, the flexibility in terms of usage of funds is simply unmatched. Such types of funds are normally procured to meet certain short term expenses on a personal level. This may cover up the travelling and wedding expenses. However, from a business point of view, these loans are used to meet working capital requirements.

Getting a personal loan sanctioned and disbursed eats up generally two to three days. It depends on the working structure and policies of the financial institution through which you are seeking the loan. Sometimes, the processing of the loan is put on hold due to the tedious verification of personal loan documents. This is where the pain point lies for several self-employed individuals. The reason being such individuals cannot produce a pay slip, which is quite natural.

Is the salary slip be-all and end-all for procuring personal loan?

The common notion is that an applicant needs to provide a payslip while applying for a personal loan. But why is the salary slip so important? Well, it is the testimony of the financial fitness of the individual seeking a loan. So does this mean, no salary slip equals no personal loan? Well, not exactly, there are other personal loan documents that can be substituted for salary slip.

Documents that can save the day for you, in case you have no salary slips:

Form 16

One of the crucial alternatives of personal loan documents in terms of salary slip can be Form 16. It is a certificate that is provided by the employer, which encapsulates all the necessary piece of information that you will ever require to prepare and draft an ITR. This certificate provides the data that the financial institution is looking in order to ascertain your financial fitness and pass the loan accordingly.

Salary certificate

Salary certificate fits right into the list of personal loan documents that can act as an alternative to salary slip. This certificate is issued by the head of the organization on the request of an employee. The purpose needs to be clearly communicated to the management for approval.

A tit-bit, which you need to remember is that a salary letter does not necessarily equate to a salary certificate. So, next time, when you are applying for a personal loan without a salary slip make a request to your organization for a salary certificate and not a salary letter.

Bank Statement

Most of the financial bodies demand a three to six-month bank statement when you apply for a personal loan along even with the salary slip. But in some cases, just the bank account statement indicating the salary credits for a longer period of time would suffice. It acts as proof of your steady income. Generally, a longer period of bank statement is required than just three to six months.

To cut a long story short, the above-mentioned personal loan documents would put forward a strong case for sanctioning of the loan even without a salary slip. However, there are certain exceptions like you can mortgage your assets for the loan if you approach a network of personal lending bodies. But at the same time, it is not a good idea to mortgage your assets. It’s the time that you should know more about the various aspects of personal loan documentation to avoid undue hold-ups.

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