If you’re looking for personal loans without proof of income, you’ve gotten covered here. In this post, you’ll go over how to use your credit score and various other factors to get a personal loan—and yes, it can be done in just a few minutes!
Secure loan using a co-signer
A co-signer is someone who agrees to pay your loan if you default on it. A co-signer is not a guarantor and so they are only responsible for the loan if you default. Usually, a family member or friend would be willing to act as your co-signer but sometimes it’s possible that they won’t be able to help because of their own debt problems or lack of income.
If you don’t have anyone willing to act as your co-signer then there are other options available such as getting 100% financing from the bank which means that they will lend you the entire amount without any money down or securing it with any collateral like property etc.
Loan against FD/NSC/LIC etc.
If you have a Fixed Deposit, National Savings Certificate, or life insurance policy with a financial institution (like SBI or ICICI), then you can take out a personal loan against it.
This is one of the best ways to get money without income proof because FDs, NSCs and LIC policies are all government-backed instruments. The bank will lend you up to 80% of the value of your investment account based on its current market value at the time of application.
Home Equity Loans (HELOAN)
Home Equity Loans (HELOAN) are another type of personal loan that doesn’t require income proof. The lender will use your home as collateral, and you can borrow up to 80% of the value of your home. You must have a fixed-rate mortgage to qualify for this loan though, so if you have an adjustable rate mortgage (ARM) or a line of credit secured by your home, it won’t work for this purpose.
This is the most common type of personal loan, and it’s one that you can access even if you have bad credit. You can use a personal loan for almost anything: medical bills, debt consolidation, home improvements, weddings, vacations and more!
Loan against mutual funds
One of the best options is to take a loan against mutual funds. This is a good option because the interest rate on this kind of loan is usually lower than other loans, and you can repay the loan in installments.
However, if you already have a loan against your mutual funds, then you should know that there might be some restrictions on how many times you can borrow against your existing investments. For example, some banks will not allow more than two such loans per year for any single account holder’s name or joint account holder.
“Note that no-income loans typically come with significantly higher interest rates and, likely, limits on the amount that can be borrowed” as per Lantern by SoFi experts.
If you are looking to get a personal loan without income proof, there are many options available. However, not all of them can be trusted. It is important that you do your research and find a lender who has been around for a while, has good reviews and will help you get the money you need quickly with minimum hassle.
