Yes, you can get a Personal loan even if you are getting salary in Cash.
A personal loan is a versatile resource that you can use for any purpose, be it personal or professional. It is a collateral-free loan that your lender provides you based on your repayment ability, credit history, income, etc. However, you need to produce a certain set of documents that can show your creditworthiness and repayment ability and can get you a personal loan.
Salary slip is the most fundamental document for a salaried person to show as their income proof, but there is a possibility that your employer pays your salary in cash with no salary account and doesn’t provide you salary slips. This is a problem for those who seek personal loans as lenders need salary slips so as to verify your income. But this doesn’t mean that you can’t get a personal loan. Many lenders in the market have started offering personal loans even if you don’t have the salary account and can give you access to the funding.
But still, yes you can get a personal loan even if you get a salary in cash. Here is how –
Submit Income Tax Return (ITR)
If you don’t have a salary account, in that case you can submit your Income Tax return to the lender as your Income proof. If you have been paying your taxes regularly on time then IT return will support your personal loan application and will be considered as a valid document for income proof.
Submit Bank Statements
Cash salary and a normal savings account can also fetch you a personal loan. If your employer is paying you on a monthly basis in cash then you might be depositing that amount into your normal savings account each month. To make your bank statements as a valid document, you need to submit the cash on a fixed date of every month. Further you will withdraw money from the said account to meet your daily expenses or can use it for online purchases. This will help you in securing a personal loan. Typically lenders request you to submit at least the last 3 months bank statements but they can request for even more. A list of transaction dates with stable input and output of cash from this account can support well for your application.
Submit a letter from your Employer
Apart from this, you can request your employer to attest a letter to the fact that they are paying you salary in cash. A statement on the company letterhead, stating you receive salary in cash, amount, and the date at which you receive it every month will help build your case.
Submit your offer letter or salary vouchers
You can also produce your offer letter as a supporting document for income proof. However, an offer letter doesn’t suffice as it only states the salary on offer not that you have a regular source of income. In that case you can also furnish your salary vouchers to support your application and can help you in proving that you earn an adequate amount of money to repay the loan. Getting a salary voucher won’t be a problem, because if your employer is paying you salary in cash then they will request you to sign the vouchers each month for their internal records. Submit those copies to establish the fact that you have a stable job and income.
But in case if none of the above options works for you, there are other options available that you can explore to get the personal loan.
If you have a FD account in a bank you can avail the personal loan by using the FD receipt. Normally you will get a loan amount of around 80% – 90% of the loan amount.
Loan against securities
Your property, gold, mutual funds, shares, and life insurance policy can serve as securities to be pledged as collateral for personal loans. Personal loans with these securities can be availed from public or private sector banks and finance companies.
Loan by way of P2P lending
Another handy alternative for personal loan against cash salary is P2P lending. Borrowers borrow money from the marketplace at a lower interest rate from individual capitalists.
Lastly maintain a healthy credit score to avail the personal loan on cash salary at competitive rates. To get a personal loan with minimal documentation and simple eligibility criteria, apply with leading institutions. But make sure to explore innumerable options before settling for one.