The average Indian wedding costs two to five lakh rupee easily. Most couples also have difficulties in arranging finances particularly where conventional loan eligibility rules appear unachievable. Salary slips are used as the most common income evidence by banks. However, what about the self-employed, freelancers or small business owners. Getting a 2 lakh personal loan without salary slip is absolutely possible when you know the right approach and documentation alternatives.
We will see some viable alternatives that the couples can use in such a case.
Withdrawals of Proven Alternate Incomes.
Your lenders must be convinced that you will be able to pay the loan. Income stability can be proven not only by salary slips. Self-employed people are able to file income tax returns over the past two years. These records clearly indicate your yearly earnings and tax payment.
The last 6 months bank statements are also good. Constant deposits indicate a stable stream of income with or without a regular job.
Marriage Loan Schemes (Specialized).
There are a number of banks and Non Banking Finance Companies that provide special marriage loan products. These plans know that couples can have alternative sources of income. Bajaj Finserv and HDFC Bank and ICICI Bank also offer personal loans related to marriage. Their application evaluation differs with the normal personal loans based on the special occasion.
Understanding marriage loan interest rates helps you choose the best option available. The standard rate will be 10.5-18 per year based on profile. Credit rating is a very important factor in getting the specific rate.
Security by Collateral or Guarantors.
Security is something that gives the lenders more confidence in your application. Gold loans are granted within a short period without salary papers. You put money on gold jewelry and get money in hours. Gold loans have lower interest rates compared to the unsecured personal loans that usually have a 8-12% yearly interest rate.
Collateral Property opens up higher loan values at favorable interest rates. In case you or your family possesses property, the banks can advance loans on the property with minimum paperwork.
Online Lenders and Fintech Solutions.
Alternative credit assessment methods are used by the modern fintech companies. They examine bank transactions, payment of utility bills and digital footprints. Applications such as MoneyTap, EarlySalary and CASHe provide loans on unconventional criteria. They disburse in less time compared to traditional banks that usually take not less than 24 hours to disburse their processes.
Fintech lenders charge a slightly higher rate of between 16-24% per annum. The rate difference however is compensated by the convenience and the limited documentation that is required.
Conclusion.
To secure marriage financing without pay slips, one has to seek other forms of documentation and special schemes. Income is effectively proven by income tax returns, bank statements and business financials. Bank marriage loan products also have rates that are competitive ranging between 10.5-18 a year. Such collateral opportunities as gold or property make the interest cost much lower.
