Personal loan is a debt without collateral that can be taken for emergency crises, higher studies, home improvement, or for travelling world. Personal loan are loan without security as there is no insurance required. An Personal loan are generally tenured between one to five years. The repayment choices are flexible , and are chosen by the banks dependent on the borrower’s financial record. Loan payments are done each month by means of EMIs through post-dated checks or guiding your bank to charge the EMI by ECS (Electronic Clearing Services). Personal loan require less docs compared to other loans.
Get a Personal Loan without Income Documents or proof
Although there are not many option for loan without income proofs, some NBFC platform provide loans without income documents depending on your credit score.
But thing to consider here is the rate interest ,as loan is unsecured and offered without income documents financial institution generally charge higher rate of interest,somewere between 32 to 55% reducing rate, it all depends on loan amount funded, more the loan amount lesser the rate of interest ,but you may end up paying double amount by end of loan tenure
Difference between FLAT and REDUCING rate of interest.
Flat Interest Rate
Flat Interest Rate means a interest are charged on total amount borrowed throughout the tenure although principal amount goes on reducing month on month .As a result higher rate of interest is acquired on loan at end
Interest per Installments = (Loan Amount * Numbers of Years * Interest Rate per annum.) / Number of Installments
For example, if you took a loan of Rs 2, 00,000 with a flat roi of 10% p.a. for 5 years, then you would pay:
- Rs 20,000 (principal repayment @ 1, 00,000 / 5) + Rs 10,000 (interest @10% of 1, 00,000) = Rs 30,000 every year or Rs 2,500 per mnth.
- Over the period, you actually paid Rs. 1, 50,000 (2,500 * 12* 5).
Reducing Interest Rate
Reducing/balance rate means an interest rate that is calculated every month on the outstanding loan amount. In this method, the EMI includes principal and interest both ,so principal amount paid in current amount will get reduced from total amount borrowed and in next month interest will be charge on remaining principal amount, and same will continue till end of the loan tenure
Interest per Installment = Interest per Installment * Remaining Loan Amount
For example, if you took a loan of Rs 2, 00,000 with a reducing roi of 10% p.a. for 5 years, then your EMI amount would reduce with every payment of installments. In the first year, you would pay Rs 10, 000 as interest; in the second year you would pay Rs. 16,000 on a reduced principal of Rs. 8000 and so on, till the last year, you pay only Rs. 4,000 as interest.
This Interest are particularly used for housing, mortgage loans, OD,CC and credit cards,etc. In this method, you have to only pay interest on the remaining principal amount
1) Pan card
2) Adhar card
3) Current address proof (adhar card, light bill, utility bill, gas book)
4) Bank statement.
Why application gets rejected?
Low credit score-If individual has some issues in past or ongoing loan,credit card or any other financially borrowed products then chances are that application may get rejected ,generally minimum credit score demanded by any financial institution is 650,here loan is unsecured and that do without income proof ,strict credit check policy can be expected.
False information-This kind of loan are generally applied online, all details related to customers background need to be filled online, detailed filled should be genuine as company may cross check ,in verification if any information is manipulated then financial institution rejects the loan immediately.
Incomplete documents-Documents mentioned above should be handy while applying for loan,if any of documents are missing then you may not able to avail credit facility
How much Loan amount will you get?
Here financial institution is not asking for any income proof then how company will calculate loan amount ,things again comes on cibil report, credit manager check customers ongoing obligations like loans, credit limit utilize, profile of customers ,number of loan inquiries will be the deciding factor to calculate loan amount, less are the obligation more will be the loans amount, its will always range between 1000 to 15 lakhs
Time for approval-
As mentioned above the entire loan process is online ,there is no physical verification thus time taken will be not more than 3 working days, in some cases loan may get disbursed within 1 days subject to valid documents and excellent credit score .
Which are financial institution offering loan without income proof.
Several financial institution lends money without income proofs are.
Indiabulls dhani -1000 to 15 lakhs
Homecredit-50000 to 2 lakhs max
Money tap (Credit limit)-5000 to 5 lakhs
Kredit bee-1000 to 2 lakhs
Note-Acess to online netbanking is must to apply for loans Click to apply