Ever been in a situation where you urgently need a loan but dread the thought of collecting piles of documents? In India, the concept of a loan without documents has gained some traction recently. But here’s the catch: a truly document-free loan is quite rare. Read ahead in the blog to find out more on “How to get loan without documents?”
Before looking at how, let us understand if it is even possible to get loan without documents.
Yes and no!
Let us explain:
1. Your bank is offering you a pre-approved loan
2. Your lender offers you a top-up loan offer.
The main catch here is that you might not be eligible for the above points if you are new to a bank.
However, you can still get a loan with minimal documentation. Here are the eligibility criteria for it:
The eligibility for a personal loan can vary from lender to lender, but here are a few general eligibility criteria one should meet:
1. You should be a resident of India
2. Your age should be in between 21-60 years.
3. You must be either salaried or self-employed.
4. Your monthly income should be more than Rs 13,000.
5. A CIBIL score above 650 is considered good!
Also, Read: Get Personal Loan Without Income Proof
While the documentation is very minimal in such loan cases, below is a list of documents you will probably need:
1. PAN card
2. Aadhar Card which should be updated and linked to your phone number.
3. Passport-size picture.
Before applying for a loan without documents, you should always check the interest rate the lender is offering you.
The table below has lenders with the interest rates they offer:
LENDER | APPLICABLE INTEREST RATE |
mPokket | 0% to 48.0% per annum |
CASHe | 2.50% per month |
MoneyTap | 1.08% per month onward |
Fibe | 24.0% to 30.0% per annum |
ICICI Bank | 10.75% to 19.0% per annum |
Bajaj Finance | 11.0% to 39.0% per annum |
HDFC Bank | 10.50% to 24.0% per ammum |
Axis Bank | 10.49% to 22.0% per annum |
Kotak Mahindra Bank | 10.99% per annum onward |
IDFC FIRST Bank | 10.49% to 36.0% per annum |
Now let us look at the repayment method of these loans:
EMI is Equated Monthly Installment. It’s a fixed amount you pay towards your loan every month. This payment covers both the principal amount (the original amount you borrowed) and the interest charged on the loan. Mathematically, EMI can be calculated by using the formula mentioned below:
EMI = P x R x (1+R)^N / ((1+R)^N-1)
where:
P is the principal loan amount (the total amount you borrow).
R is the monthly interest rate. (You can calculate this by dividing the annual interest rate by the number of months in a year. For example, if your annual interest rate is 10%, your monthly interest rate would be 10% / 12 = 0.0083).
N represents the loan tenure in months (the total number of months you have to repay the loan).
This formula can be a bit complex to solve manually. Luckily, there is an EMI calculator tool available online at Credmudra that can do the calculations for you.
Now, coming to the main question:
Also, Read: Need 30,000 Rupees Loan Urgently In a Day
The application process for a paperless loan, popularly called a “loan without document,” is generally quite easy:
Most lenders offering paperless loans have a user-friendly online application process.
The lender might use various digital means to verify your identity and income details. This could involve bank statement analysis or bureau verification.
Based on your creditworthiness and other factors, the lender will decide on your application.
If you are confused about which lender to go forward with, you can trust Credmudra. We will help you find your right lender in 3 minutes and ensure loan disbursement happens smoothly!
But before you apply for a loan without documents, read these tips:
1. Achieve and sustain a credit score above 750 to enhance loan approval odds and secure lower interest rates.
2. High credit scores favor pre-approved loan offers, especially from institutions where you already have financial relationships.
3. For immediate, document-free personal loans, contact your current bank or non-banking financial company (NBFC), as they have your details and may offer pre-approved loans.
4. Seek banks/NBFCs with digital processing for quicker loan handling, especially if you lack pre-approved offers.
5. Use online loan-match-making platforms like Credmudra to compare and apply for personal loans without affecting your credit score.
While a true document-free loan might be a myth, paperless loans offer a convenient and faster way to access credit. Remember, a loan is a financial commitment. Borrow wisely and use it for responsible purposes.
We hope you found the blog insightful. Please let us know if you have ever taken a loan without documents in the comments section below!
Also, Read: Personal Loan for Rs. 14,000 Salary: Eligibility, Tips & Top Lenders
Securing a 50,000 loan without a salary slip or comprehensive documentation can be challenging. However, some lenders may offer loans with minimal paperwork.
Obtaining a loan with no documentation is possible through online lenders who provide paperless loan options.
The maximum loan amount can vary significantly based on the lender’s policy, the borrower’s creditworthiness, and their relationship with the bank.
Credmudra is a digital platform designed for financial services leaders in India to share their insights and perspectives beyond the limits of social media. It is a purpose-built platform for experts from banking, NBFCs, fintech and others to reach the right audiences and transform finance. With Credmudra, finance professionals can establish themselves as thought leaders and engage meaningfully with India's top money minds and those shaping the future of lending. Unlike social media, this platform offers a space for compelling discussions and community building within the industry. Credmudra can elevate the quality of discussions and collaboration among influential authors in Indian finance.
Connect with us Terms and Conditions*Getting a loan can be a daunting task, especially if you have a low or no CIBIL score. CIBIL, which…
Welcome to the definitive guide to understanding India's unique identification system—the Aadhaar card. This 12-digit identifier has revolutionized identity verification,…
Be a part of our ever growing community.