Pay slip is the most fundamental requirement for Instant Personal Loan. Nevertheless in India, the majority of the employers offer salary in cash with no salary account. This is a problem for those who seek personal loans since lenders need salary slip so as to verify income and assess credit worthiness.
But still, yes you can get
personal loan even if you get salary in cash and here is how:
Produce IT return
If a person has no salary
account but files income tax every year then they can produce their latest
income tax return statement to the lender to verify. IT returns statement is
considered to be a valid document, but somehow the Personal loan interest rates will be a bit higher than other loans
Submission of bank statement
Cash salary and a normal savings
account in a bank can also fetch you a personal loan. For this you need to
deposit an amount on a fixed date every month. This will also help you to get
personal loan. You can submit a statement from the bank to the lender and it
will serve as an authoritative document to secure your loan. You may be asked to
submit bank statement of minimum three months or even more.
But in case the above
mentioned two documents are not available then people with cash salary can also
get personal loan. You just need to follow the below mentioned two alternatives:
Loan against FD
If you have a fixed deposit
in a bank then you can take personal loan by using the FD receipt. Normally you
will get a loan amount of around eighty to ninety percent of the FD amount.
Loan against securities
Your property, mutual
funds, gold, shares, and LIC policy can serve as securities to be pledged for a
personal loan. Personal loans with these securities can be availed from public
or private sector banks and finance companies.
Loan by way of P2P (peer to peer) lending
Another handy alternative for personal loan against cash salary is P2P lending. Borrowers borrow money from the online market places at lesser interest rates from individual capitalists. Borrowers are the ones who are allowed to decide the Personal loan interest rates.
As Instant Personal Loan is an unsecured loan, but still when a loan is taken against mutual fund/shares/FD receipts it is considered as a secured personal loan. This gives the lender lower risk. In case a person fails to repay the loan amount then the lender can send a request for fund from the respective authorities. The request should be signed and comprises of unit transfer and handing over the proceeds to the lender.