How is it Possible to Get a Personal Loan Without Documents

A personal loan is an unsecured loan or debt. It provides cash to fulfil your personal needs. These could be family responsibilities, career or home improvement. These could also be major purchases or emergency type of situations.

These types of loans are unsecured. They usually have a short span of around one to five years.

A borrower does not need to provide any collateral. This is why personal loans have obtained popularity as the best approach to loan money.

This is for a wide variety of purposes. These loans involve a lot of paperwork and documentation to get sanctions and approval.

Cashless transactions are taking centre stage in India’s financial cycle. This is because of ongoing digitization. Digitization started with demonetization.

Financial institutions are also trying hard to implement new technologies. These will eliminate the need for physical documents.

Technology has made it quite easy to go paperless. It has digitized a lot of things. This includes financial transactions also.

There is no requirement for any documentation. Now one does not have to collect countless documents. They don’t need to visit financial institutions to sanction loans and get approval.

They can now avail of personal loans without documents. This can be done with a quick sanction process. This is an ideal experience. Even the loan application process is available online mode now.

The applicants are required to submit documents in a digital format. They can do this by uploading scanned copies. There is no need to submit paper documents.

Benefits of a personal loan without documents

The entire process of availing of a personal loan is faster now. This is because of digital platforms. It is also more efficient. This is much better than visiting traditional banks.

This process includes everything right from loan application to loan sanction and disbursement.

These online digital platforms are designed in a way to assess the loan application. They do this by evaluating your personal and financial data. Let us list some of the benefits of availing of personal loans without documents.

1. No physical papers or documents are required. This helps save paper and trees as well.
2. It’s a hassle-free process. It lessens the need for hefty paperwork. It also saves tons of signatures on separate forms. There is also no need for frequent visits to the banks.
3. Your personal and financial data is safely stored on the digital platform. These platforms go through strict security testing. They follow certain security protocols mandated by the banks.
4. This process offers simple and convenient applications. This saves time and resources. The whole procedure is completely digital. So it saves time and fuel. It also saves frequent human interventions.

Eligibility criteria for a personal loan without documents

Anyone can apply for and get a personal loan. They can do this only if they meet the eligibility criteria of the lender. Below are the criteria to qualify for a personal loan:

1. You must be of Indian nationality. Your age must be between 21 to 60 years when you apply for the loan.
2. Your credit score or CIBIL score must be 750+. Your monthly income must be at least 25k per month. This is for both salaried as well as self-employed,
3. Some lenders require you to be employed for at least 12-24 months at the time of applying for the loan.

It is much easier for regular existing lenders to avail of personal loans without documents. This is because they already have KYC details, PAN, address proof, income details, loan repayment history, etc.

Lenders also provide pre-approved personal loans to their select customers. This offer is based on their CIBIL score. The credit profile of those customers is pre-verified. This allows them to disburse loans within no time. This is done without any documentation.

Procedure to avail of a personal loan without documents

Below are some important things to keep in mind to avail of a personal loan without documents:

1. Approach lenders/banks that you maintain a relationship with: Loyalty and trust go a long way in the financial world. This is especially true when it comes to borrowing credit. It is very important to win long-term lender trust. This can easily earn you documentation-free personal loans. The lender might have access to your personal and financial information. So they may not require additional documentation. Lenders might have some pre-approved offers on the loans as well. This will be based on your credit profile.
2. Ensure a strong credit/CIBIL score: Personal loan approvals strictly require credit score evaluation. This is because these are unsecured loans. This score represents creditworthiness. This also shows your previous repayment history. Try to have a higher credit score/CIBIL score. This ensures easy approvals of personal loans. This is sometimes even with lower interest rates and reasonable processing charges.
3. Maintain a healthy debt-to-income ratio: A debt-to-income ratio is defined as the percentage of a customer’s monthly income going towards debt repayments. The less this ratio, the easier and quicker the loan approval process becomes. This indicates that you have an excellent source of income. It also shows that your repayment capacity is outstanding too.
4. Repay all existing loans and dues and bills on time: Ensure to pay your loan EMIs, credit card and other bills, etc on time before the due dates. This will help you secure personal loans without documents. This will also help you secure any type of loan in the future. Bad credit scores affect loan approvals and sanctions. So do bad repayment histories. You should ensure timely repayment of dues and bills. This makes you trustworthy. It also helps you maintain a good relationship with lenders.

Summing up

It is not at all impossible getting a personal loan without documents. This is possible only if you have a healthy CIBIL score. You should also have a low debt-to-income ratio. It is highly important to earn the trust of lenders. This proves your creditworthiness.

Piramal Finance is an excellent financial institution for all your financial needs. These range from loans to other financial services. Their experts will assist you with everything regarding availing of personal loans without documents.

Without wasting another minute, visit this website – https://www.piramalfinance.com/personal-loan and get a hassle-free personal loan without documents! 🙂