Not Having Salary Slips to Apply for the Personal Loan? We’ve a Solution for You!

Last Updated : Feb. 13, 2020, 12:39 p.m.

Given that personal loans are accessible without having to submit any collateral, lenders would like to be convinced of your income. What gives them the confidence is the legitimate income proofs you submit to the lender. The most common proof is the salary slip that most of us get from our respective companies. It shows the break-up of salary into different constituents such as basic salary, dearness allowance, medical allowance, and even the provident fund deductions. But some don’t have the privilege of salary slips. And, if you are one of those, you may be wondering whether you can apply for the personal loan. To bring a smile on your face, let’s be told that you can get the loan. We will tell you, how can you get a personal loan without salary slips, in this post. So keep reading!

Salary Certificate – The Alternative to Salary Slips

If you don’t have salary slips, you can request your employer to issue you a salary certificate bearing the signature and seal of the competent official. That will work as income proof. You can just submit it to the lender and get the loan approved.

Can a Bank Statement Work as an Income Proof?

Given that India’s corporate landscape is all but fragmented, many of you may be working in a very small firm giving you the salary in cash or cheque. Cash salary is an absolute ‘No’. The loan approval for a cheque salary will depend mostly on the discretion of the lender. The bank statement will show the amount written on the cheque you deposit on your bank account. But the amount credited to your account won’t be shown as salary on the statement. This makes it a tricky situation for you.

But it can show as ‘Amount Transferred’ to your account with the cheque number. You can just take a photocopy of the cheque showing all the details such as amount to be credited, cheque number, as well as the company name and signature of the competent official. It’s now clear that the cheque should be of the company’s current account and not a savings account of a proprietor or partners in a partnership firm.

Will Lenders Place Any Specific Income-related Condition?

Generally, lenders expect you to earn a specific amount to grab a personal loan offer. Since you don’t have salary slips, which are usually asked to authenticate your income proof, lenders will most likely approve your case if you earn more than what’s normally asked of. For example, a lender approves the personal loan on a minimum salary of say ₹25,000 when you have salary slips. Maybe it will seek an earning of around ₹30,000 or so to approve when you submit income proofs other than salary slips.