Personal Loan Without Documents (Paperless)

Owing to the digitization, personal loans are now available to anyone who wants to secure the loan instantly with minimal documentation. Technology has helped digital lending platforms offer pre-approved instant personal loans with paperless documentation to make the loan processing quicker, more seamless and more convenient. The term ‘paperless’ is often misunderstood with ‘no documentation’. However, the term implies that the applicants will be applying for personal loans online through online modes. The applicants might be required to submit documents but in digital format instead of paper. It will allow applicants to upload scanned copies of the required documents online from anywhere during the loan application process.

Who can get a personal loan without fresh documentation?

Lenders usually offer personal loans without documents to their existing borrowers or bank account holders as the lenders already have the KYC details such as PAN, Aadhaar number, address proof, income details, loan repayment history (in case of borrowers), etc. This eliminates the need for submitting fresh documents by those existing customers.

With many banks/NBFCs implementing end-to-end digital process from loan application to disbursal, customers do not need to submit hard copies of the required documents. Hence, individuals who are looking for ‘paper-free’ or ‘paperless’ personal loans can apply with such banks/NBFCs.

Personal loan applicants can simply upload their documents during the application process on the basis of which such lenders approve with much quicker disbursal. Lenders also offer pre-approved or pre-qualified personal loans to their select customers (including new-to-credit customers) based on their credit profile.

As credit profiles of such customers are pre-verified, it allows lenders to disburse loans within a few minutes or hours of making the loan application without requiring fresh documentation.

Tips for availing personal loans without fresh documentation

Below mentioned are a few points that you must work on to increase your chances of getting approval on personal loan:

• Build and maintain a high credit score

Maintaining a high credit score, usually of at least 750, increases your chances of personal loan approval. Some lenders also offer lower interest rates to such applicants. As personal loan is an unsecured loan (collateral-free loan), lenders place emphasis on credit score while evaluating personal loans applications. Having a higher credit score also helps you get access to pre-approved personal loan offers from lenders with whom you have an existing relationship. A high credit score will reflect responsible credit behaviour and thus, increase the chances of getting pre-approved personal loans offers from lenders with which you already have credit card(s), loan(s) and/or deposit account(s).

Also Learn: 9 habits that can help you maintain a good credit score

• Approach banks/NBFCs with which you have existing relationship

Individuals who want to get personal loans instantly without documents should first approach banks/NBFCs from which they are availing banking/lending facilities. This is because such lenders already have your personal details and hence, may not require additional documentation. Also, such lenders might have pre-approved offers for you based on your credit profile. For example, your bank/NBFC, might consider your investments, deposits (fixed deposits, recurring deposits, etc.) and transaction patterns while evaluating your personal loan eligibility.

• Approach banks/NBFCs having end-to-end digital loan processing

COVID 19 pandemic has forced many banks and NBFCs to adopt digital infrastructure for online documentation and processing of personal loans. Due to this shift, such banks/NBFCs are able to offer online personal loans with much lower turnaround time than personal loans applied through traditional offline channels. Hence, individuals who are in urgent need for money and are not eligible for pre-approved offers from their existing banks/NBFCs must approach lenders offering end-to-end digital loan processing. Alternatively, one can also visit online financial marketplace like Paisabazaar to compare online personal loan offers available from both traditional banks/NBFCs and new-age fintech/digital lenders. Note, applying for personal loans through such online financial marketplaces won’t impact your credit score.

Compare Personal Loan Interest Rates from Top Banks & NBFCs

Note: Interest rates as of 23 December 2024

FAQs on Personal Loan Without Documents

1. Can I get a personal loan without income proof?

Ans. Lenders want to know your income details to evaluate your loan repayment capacity. In case of no income proof, some banks and NBFCs ask their applicants to submit their bank statements to estimate their income and financial position on the basis of their cash flows.

2. Can I get a personal loan without salary slips?

Ans. Yes, you can get a personal loan without salary slips. In such cases, lenders often ask for the applicants’ bank statements to evaluate their loan repayment capacity. This may however vary from lender to lender.

3. Can I get a personal loan without bank statements?

Ans. For many lenders, bank statements are mandatory documents for securing a personal loan. Your bank statement helps lenders to assess an applicant’s income, financial behaviour and position. Hence, the last 6 months of bank statements are important to avail a personal loan.

4. Can I get a personal loan without ITR?

Ans. Income Tax Return (ITR) documents serve as an income proof. From salaried individuals, lenders usually do not ask for ITR documents as they have salary slips and bank statements as income proof documents. However, in case of self-employed professionals, banks require ITR documents to evaluate their loan repayment capacity.

5. Can I get a personal loan without submitting my PAN card?

Ans. Typically, you cannot avail a personal loan without furnishing your PAN details, especially when the loan amount is more than Rs. 50,000. However, some lenders like IDFC First Bank extend personal loans to applicants without a PAN Card. In such cases, lenders require applicants to submit Form 60.