No job or bank account? Don’t worry; You can get a loan even without many such things

Updated: January 15, 2019 10:45:59 AM

Need money but don't have a bank account or good credit score? You can still get a loan. Here's how.

loan, personal loan, home loan, loan criteria in India, personal loan eligibility, bank account, good credit score, Things not needed to get a loanYou can get a loan even without many things which are considered a must for getting that. Find out what they are.

The Internet is abundant with information on how to get a loan as well as factors that are considered important to get a loan from banks. Anyone who is looking for a loan online for the first time or has a low credit score would find it hard to deal with the voluminous eligibility criteria that are prescribed by the lenders. Getting your hands on credit could become a nightmare when you do not fall under those criteria. However, that is not the case with every lender or loan.

Every loan has different sets of criteria of eligibility. Even if you satisfy all the criteria for one type of loan, other types of loans may have an entirely different criteria which you may not fall under. Following are some of the factors which you can forego while applying for certain loans:

Collateral

The number of people availing credit are increasing day-by-day, thanks to the technology which has made lending a seamless experience for the borrowers. With so many online lending platforms, the lenders vie with each other to increase their customer base, thus giving room for unsecured loans. You can now get a collateral-free loan for business, education and various other personal requirements online without even having to visit a bank. Apart from online lending platforms, you can also get an unsecured loan from any bank based on your income and credit score.

Bank Account

Bank statement is one of the required documents that banks demand while you apply for a loan. Hence, it becomes mandatory that the applicant should have a bank account. But it is not same with every lender. As long as you are able to establish your repaying ability through documents such as Payslips or income certificate, you can still get both secured and unsecured loans.

Employment

Banks provide loans to individuals who are either salaried or self-employed professionals. Getting a loan without employment is also possible when you have a good credit history, or you are able to on-board a guarantor or co-applicant with a good credit score. If you have made regular repayments on time without a single default, the lenders would be willing to lend you a secured loan with a guarantor.

Excellent Credit Score

Your credit score tells a lot about your credit behaviour. This is the yardstick for banks using which they approve or reject your loan application. However, the same rule does not apply for every loan. For example, when you apply for a secured loan such as a gold loan, auto loan, home loan or loan against property, though having a credit score is an advantage, it does not lower your chances from bagging the loan. As the lenders have the advantage of the collateral, you are likely to secure the loan even with moderate credit score. Although having an excellent credit score is still very helpful as it helps you get the best interest rates in the market.

Alternatives to Loans

When you go through a cash crunch, a loan is the thing that ultimately saves the day. But when you are unable to get one, you can also explore some of the alternatives that can get you funds for an immediate financial requirement.

# Credit cards can come in handy when you look for cash in an emergency. They allow you use the money now and pay for them later. When you make online purchases or transactions, you can get discounts and reward points. But when you withdraw money using your credit card, you will end up paying transaction charges up to 3% of the amount withdrawn.

# If you work in a reputed organisation, there are chances that you can get an interest-free loan from your employer. The repayment can be made each month from the part of your salary.

# If you have invested in fixed deposits, PPF, mutual funds, shares and insurance policies, you can get a loan from banks with minimal documentation. However, there may be conditions that only after completing a few years of the investment period, you will be able to get the loan.

(By Ranjit Punja, CEO and Co-Founder, CreditMantri)

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