How Do You Get a Personal Loan Without Bank Statements?

A bank account is imperative to take care of one’s financials. It makes managing finances easy with debit and credit facilities as per requirement. With a bank account, one has access to their hard-earned money anytime, anywhere. Moreover, bill payments, salary credits, insurance payments, tax payments, and other financial activities can be processed via the bank account without having to deal in cash at all times.

Even to get a loan, having a bank account is essential because the loan amount is disbursed in your bank account, and the loan repayment is done through the same account. A bank statement is one of the important documents required to be eligible to get a personal loan.

Before we get into the particulars of how to get a personal loan without bank statements, let’s take a look at the basics of a personal loan.

Before we get into the particulars of how to get a personal loan without bank statements, let’s take a look at the basics of a personal loan.

A] Features and Benefits of Personal Loan

A personal loan is a loan that doesn’t require any collateral or security and is offered with minimal documentation. Funds from this loan can be used for any legitimate financial need. Like any other loan, you have to repay it, as per the terms agreed upon with the bank. These terms can include repayment time from a few months to a few years in easy equated monthly instalments (EMIs).

One of the best reasons to avail a personal loan is the consolidation of other existing debts. For instance, let’s say that you have a few existing debts to your name; they can be student loans, credit card debt, etc. If you are having trouble making payments, in such cases, a personal loan allows you to borrow money and repay the same over time. Personal loans can be termed as instalment debt that allow you to avail a lump sum of funds and return it over a decided timeline, as per the terms.

You can also use a personal loan for mandatory yet huge expenses like buying or renovating your house, buying an automobile or medical emergencies.

Features and benefits of a personal loan include:

1. No collateral or security required: Personal loans does not need any collateral like a house or car to avail a loan. A personal loan is approved only based on one’s creditworthiness, something that depends on your credit score, income, repayment history, employer reputation, etc.

2. Flexible end use: Personal loans can be utilised for multiple purposes like to meet expenses of a medical emergency, travel, house renovation, debt consolidation, and much more.

3. Flexible tenure: Personal Loans generally come with flexible tenure plans ranging from 12 months to 60 months.

4. Minimal documentation: Personal loans can be applied via online as well as offline processing with minimal documentation. Key documents that an applicant is generally needed to submit include proof of identity, proof of address, and proof of income.

5. Quick disbursal: Personal loan disbursal can at times happen within a few hours, once the loan application is approved. In some cases, turnaround times can also be as short as a few minutes if one can avail of a pre-approved loan offer.

6. Flexible loan amount: The personal loan amount that gets disbursed is based on factors such as an individual’s repayment history, monthly income, age, profession, employer reputation, and other factors. Lenders offer personal loans of an amount ranging from as low as ₹10,000 to as high as ₹40 lakhs.

Also Read: How Do You Get a Personal Loan Without Security?

B] What are the eligibility criteria for a personal loan?

Note that the eligibility criteria are the same overall, but the particulars of interest, salary requirement, etc might be subjective as per the financial institution approached for a personal loan.

Following people are eligible to apply for a Personal Loan:

• Employees of private limited companies, employees from public sector undertakings, including central, state as well as local bodies.
• People between the age of 21 to 60 years.
• Individuals who have had a job for at least 2 years, at least a minimum of 1 year with their current employer.
• Individuals who earn a minimum of ₹25,000 as net income per month.
• The nationality of individuals applying for a personal loan should be Indian.
• They must be salaried employees.
• Their CIBIL score should be 750 or higher.

Also Read: How do you get a Personal Loan without a Pan Card?

C] How to get a personal loan without bank statements?

Submitting your bank statement is important when applying for a personal loan. It acts as valid proof of your monthly income as well as shows your ability to repay the loan. A bank statement determines your loan eligibility, as it records your monthly debits and credits; your bill payments, salary credit, and other payments. Additionally, a bank statement also confirms your identity, your repayment capacity, and your existing EMI outflow.

Hence, when applying for a personal loan with a bank, NBFC, or even an online lender, submission of your bank statement is mandatory. However, you can also avail a personal loan without a bank statement hassle-free by considering the following options.

Payday loans:

Payday loans are known as salary loans or payroll loans. It is a short-term loan offer based on your salary slip. This type of loan is offered without any collateral and is unsecured. Opting for payday loans is the right choice for salaried individuals, especially ones who have just started working. However, the interest charged on this type of loan is higher compared to a personal loan availed from a bank or NBFC. Payday loan products are mostly offered by leading fintech companies in India.

Peer-to-peer loans:

Peer-to-peer loans are popularly known as P2P lending or crowd lending. Peer-to-peer lending allows lenders to lend money and borrowers to borrow. This lending and borrowing is generally done online, wherein both parties have to register themselves.

Postdated cheques are collected from the borrower in the name of the lender as a proxy for the repayment of the loan. The loan amount is transferred directly to the bank account of the borrower. This type of loan is sanctioned based on one’s credit score, social score, and KYC documents. Since lenders are at high risk in peer-to-peer loans, the interest rate on these loans is usually high.

D] Other ways to get a personal loan without a bank statement

By establishing a good relationship with your bank:

If you are applying for a personal loan with the same bank where you hold a savings or salary account, the bank is unlikely to ask you for your bank statement. This is because they are already aware of your credit worthiness.

Paying all your credit card dues on time:

If you have a credit card, ensure that you repay the dues on time. By doing so, you can increase your chances of getting a loan without any bank statement. Paying your credit card dues on time not only keeps you debt free but also enhances your credit repayment record, which comes in handy for an instant loan without a bank statement.

Maintaining a high credit score:

Maintaining a high credit score can increase your chances of getting a loan as several banks, NBFCs, and online lenders are likely to offer you a loan simply based on your score. Having a high credit score is considered a sign of good repayment behaviour. Moreover, it instils faith in the lenders concerning timely loan repayment.

Conclusion

When seeking a personal loan without bank statements, it is important to maintain a good relationship with your banking institution. It makes it easy to avail of a personal loan based on timely payments and clear credit records. Plus, the details are already available with the bank. Moreover, it is important to have the right financial guidance in such cases, which can help you act upon applying for a personal loan at the right time and use the funds appropriately.