Personal loan application without any paperwork

During financial emergencies, access to many instant loan without documents can be a blessing in disguise. Personal loans have become a preferred loan option over the last decade due to the flexibility it offers. Quick disbursement of money, lower interest rates, convenient payback options all contribute to its popularity. Funds from personal loans can be utilized to pay for medical treatment, home renovation, travel requirements, further education, buying a vehicle, etc. Applying for a personal loan with minimum or no paperwork is now possible. If you are wondering how to get a personal loan, the below list indicates the eligibility criteria for the same. The eligibility remains broadly the same for most lenders:

• You have to be a citizen and resident of India
• Your age must be 21 years and above (people in the range of 21 to 60 years can avail themselves)
• You must hold a primary bank account which is still active in India
• You must have valid identification proof
• You must have a good credit score (of at least 700+)
• You need to be employed and draw a stable salary
• For salaried employees the rule is that you must be employed with the company for at least a minimum of 1-2 years

How to get personal loan online or through an app

The application for an instant loan without documents is straightforward. All you need to do is:

1. Go to the financial institution’s online webpage or download their instant online loan app.
2. Fill a basic registration form and review loan options available as per your requirements (loan amount, interest rate, repayment options, and period).
3. Check your eligibility for loan application online or on the app and apply.
4. Once your loan request is approved, provide proof of documents by uploading soft copies of the same on the lender’s website or app.

Once the lender approves your request, you will receive the amount in your account almost instantly. In addition, the loan repayment period in such cases is usually short. Lenders also provide flexible EMI options along with competitive interest rates.

Documents to be submitted include identification proof, proof of address, and last 3-6 months bank statements. Thanks to digitization, all transactions can be paperless without requiring physical interaction, saving time and energy for lenders and borrowers. In addition, all necessary documents can be submitted and verified. However, if the above documents are unavailable, you might still be able to avail of an instant loan without documents.

• In the absence of a PAN Card – If the loan amount is relatively small (amount less than fifty thousand), the lender might consider providing you the loan based on your PAN number, credit score, and other submitted documents.
• In the absence of Salary Slips – If you are unable to produce salary slips as proof, then the following may be considered by the lender:
  • Submitting proof of other forms of income (income of spouse, house rent income, etc.)
  • Submitting Form 16

• Applying for the loan with a guarantor who can provide the basic documents and proof required by the bank or lending agency can also suffice in many cases when applying for an instant loan without documents.

Some more points on how to get personal loan approved are mentioned below:

• Good functional relationship with your lender / financial institution: If you happen to have an account with the bank you wish to borrow from, a few sensible practices from your end will help your loan approval. Paying your credit card bills and past loan repayments on time and maintaining your account balance prudently will help create trust in the lender.
• Maintain a robust credit score: Since personal loans are unsecured loans (with no security backup requirement), the primary way your lender can check your financial portfolio is by reviewing your credit score. Therefore, it is advisable to clear all your outstanding debt on time and pay your credit card bills and existing EMI’s promptly.

• A low debt-to-income ratio defines the ratio between your total monthly debt and your total monthly income. Ideally, this should be 35% or below to indicate financial steadiness and create confidence in the lender regarding your repayment capability.

• Several financial institutions have created loan apps that are easy to use. These apps provide hassle-free, paperless access to short-term loans quickly and efficiently.

The introduction of aninstant loan without documents has made the application process of personal loans a suitable opportunity for those in need of availing urgent funds. In addition, technological improvements have helped reduce human intervention, efforts, and administrative load, saving time. Even the Indian government is in favor of promoting digital transactions across all customer segments. This has led to national financial institutions adopting paperless methods for loan approval and distribution.