A Handy Guide to Reading your Credit Report Correctly

Having a financial crunch and need cash immediately? Then, applying for a personal loan is the best choice you have got. A personal loan is usually a collateral-free loan, which can be utilized for any purpose. Based on your credit history, income and repayment capacity the lender will offer you with an unsecured personal loan. To prove your creditworthiness and repayment ability, you will be requested to produce certain mandatory documents. For working professionals, salary slip is a mandatory document in order to get approved for a loan.

However, in India, some employers offer salary in cash and do not issue any salary slips and this becomes a problem for you when you want to apply for a loan. Because, based on the salary slip, the lender will verify your income, evaluate your creditworthiness and calculate the loan amount. Non-availability of this document may disqualify your loan request.

Then, how can you get a personal loan if you are getting your salary in cash? Do not worry as there are 5 simple ways for you to get a personal loan without your salary slip.

  • Submit your income tax return – In the absence of your salary slip, you can submit your IT return as income proof. If you are filing your income tax every year, you can produce your latest IT return to your lender for income verification.
  • Produce bank statements – Even if you do not have a salary account but have a normal savings account in which you deposit and withdraw money regularly, you can produce those bank statements and get a personal loan. You may have to submit a bank statement of a minimum of 3 months or more.
  • Submit an official letter from your employer – You can also request your employer to provide an authorized document with a signature on your company letterhead which affirms that your salary is paid in cash. This gives more weightage to your application.
  • Present your offer letter/salary vouchers – As a salaried professional, you can produce your offer letter as a supporting income proof. But producing only your offer letter is not sufficient as it only provides the information about your salary and does not establish the fact that you are getting a regular source of income. Hence, you need to furnish copies of your salary vouchers to prove that you are earning a stable income. Employers who give salary in cash will ask you to sign a voucher every month for their internal records. You can submit them to convince your lender that you can repay the loan.
  • Avail a loan against securities – If none of the above-mentioned options is working for you, then you can get a personal loan by pledging your assets such as gold, FDs, mutual funds or any other securities as collateral. Your lender accepts these assets as a security and will sanction you a cash salary loan based on the loan to value ratio.

Lastly, it is always advisable to maintain a good credit score to avail a personal loan if you get salary in cash. Remember not to fake any document as it might land you in trouble or even invite a legal case against you.
If you are looking for a lender who can approve your loan request instantly, then turn to FlexSalary. Whenever you need cash immediately, FlexSalary’s line of credit comes handy. You can apply for a loan amount from INR 4,000 to INR 2,00,000. You can withdraw money from your line of credit at any time and repay the borrowed money in flexible payments.