Personal Loan Without Documents

Documentation plays a crucial role in personal loan approvals. For unsecured credits like personal loans, documents serve as necessary proofs against which a borrower’s reliability, financial standing and repayment potential gets established. Although gaining a personal loan without documents might be challenging, the current digitisation of the banking sector is slowly and steadily making way for it.

Traditionally, documents like Identity proof, Address proof and Income proof are required to apply for personal loans. Today, we discuss the different ways which can help gain a personal loan with no or minimal documentation. 

How to Get a Personal Loan Without Documents

There are primarily two ways to get a loan without documentation: opting for minimal documentation or no documentation at all. Take a look to find out which one suits you the best:

Minimal Documentation

Minimal documentation mustn’t be confused with ‘no documentation’. Even though lesser certificates will be needed in such applications, a borrower will still need to furnish them. ‘Digital loan applications’ are a great example, where documents are digitally uploaded, instead of attesting hard copies. ‘Paperless Applications’ carry out a Digital KYC process where the credentials of an applicant are verified through their documents digitally, eliminating much of the physical hassle.

No Documentation 

This is particularly suited for existing customers of a bank. Banks offer ‘pre-approved personal loans’ to their existing customers. Such customers need not produce any documents as all their credentials have already been verified previously by the bank. Such lenders effectively leverage their existing relationship with the bank to gain higher loan amounts. 

Tips to Avail a Personal Loan Without Documents

Follow these simple tips to get the best personal loan without document:

• Maintain High Credit Scores to compensate for a lack of physical documents and establish your credibility.
• Approach Non-Banking Financial Institutions (NBFCs) as they’re more flexible than banks
• Expect high rates of interest on the loan
• Read the loan T&Cs carefully before signing the agreement

Features of Personal Loans Without Documents in India

Loans without security and document requirements offer the following benefits to the borrowers:

1. Faster Processing: Due to less paperwork, these loans can be rapidly processed and quickly sanctioned. 
2. No Collateral Requirements: These are unsecured loans and thus applicants aren’t required to offer any security.
3. Digital Applications: Such loans are mostly available online. Digital applications allow borrowers to comfortably apply for loans from their homes. 

Who is Eligible for an Instant Loan Without Documents?

The following borrowers are eligible for a loan without documents:

1. New borrowers with high CIBIL scores.
2. Existing customers of the bank applying for ‘pre-approved’ loans
3. Borrowers having a steady source of income
4. Indian nationals 
5. Other criteria as specified by the bank