Personal loans are helpful to meet financial obligations when we don’t have any money. Usually, banks and NBFCs demand many documents for offering a personal loan. One may get tangled in the lengthy paperwork for getting a personal loan in India. Many people wish they could skip the documentation process for getting a personal loan. It is possible to get a personal loan in India without lengthy paperwork. Are you searching for ‘20000 loan without documents’ on the internet? Let’s dig deeper to find out more about how to get a personal loan without documents in India.
Documents Needed for Getting a Personal Loan in India
Before you know the process to get a personal loan without documents in India, you should know the documents needed for the process. Usually, banks and NBFCs demand several documents for offering a personal loan. However, this has changed in the last few years as the reliance on digital infrastructure has increased. Some common documents that are required to get a personal loan are as follows:
- Aadhar Card
- PAN Card
- Salary Slip
- Driver’s License
- Voter ID Card
- Bank Account Statement
How to Get a Personal Loan with the Least Documentation in 2022?
There are several ways to acquire a personal loan with less documentation in 2022. Some ways to get a personal loan without documentation are as follows:
High Credit Score
A good credit score can help you get a personal loan with less documentation. The credit score increases when you take loans and repay them timely to the lender. When an individual has a high credit score, it is an indication that the individual is likely to repay the loan timely. Banks and NBFCs evaluate credit risk before disbursing personal loans. When someone’s credit score is high, it means low credit risk is associated with them. Usually, banks/NBFCs offer personal loans easily to those having a credit score of 650 and above. The credit score is also valued during personal loan online apply.
Besides credit score, your credit history can also play a role in getting a loan without any documents. A good credit history means you have taken many loans and paid all of them timely. A good credit history means a good credit score for any individual. You can just show your credit history report to the lender and get a personal loan easily.
Ratio of Income and Debt
Your debt amount should always be less than your salary. The debt-to-income ratio can also help you get a paper-free personal loan. According to experts, your debt-to-income ratio should always be less than 50%. For example, consider you earn INR 9,000 per month in India. If your monthly debt payments add up to INR 3,000, your debt-to-income ratio comes out to be 33%. Banks and NBFCs have a look at the debt-to-income ratio of individuals before offering a personal loan. A good debt-to-income ratio will promote your financial credibility, and you may get a personal loan easily.
Better Relationship with a Loan Provider
Consider you have been a customer of a local bank for the past ten years. During these ten years, you have taken loans many times and returned them timely. You will have a personal relationship with the bank manager. The loan officers will know that you have been a loyal customer of the bank for the last ten years. They will quickly approve your new personal loan without any documents.
Having a good relationship with the loan provider can help you get a loan without any documentation. Banks usually prefer customers that have previously taken a loan from them and returned it timely.
Pros of Paper-Less Loans
Besides the aforementioned ways, you can get a personal loan without documentation via an online lending platform. Increasing digitisation in financial services has now enabled people to get a personal loan online. A digital lending platform will only ask for a few documents to offer you a personal loan. The required documents are to be uploaded online on the lending platform. You don’t need to step out of your house for getting a paperless personal loan. The pros of getting a paperless personal loan via an online lending platform are as follows:
- You don’t need any collateral for acquiring a personal loan via any online lending platform.
- You can avail of a loan with less paperwork and in less time via an online lending platform.
- You will witness the seamless release of the loan amount into your bank account via a lending platform that offers instant personal loans.
- You don’t need to interact with multiple bank officials and agents for getting a personal loan via a digital lending platform.
Personal loan online apply is available on many digital lending platforms. You can also get a paper-free loan by having a good credit score and history. Apply for a paper-free personal loan in 2022!