Income proof is very important if you want to determine your repayment capacity as a borrower. Getting a loan can be hard if your income level is not adequate or stable enough. Income is a central factor when it comes for the bank to decide on the loan amount which they can give you. They check your income documents before giving your loan. Some of the lenders can even do a background check on you and your earning sources.
Now, if your earning level is not enough, that means you cannot get a loan against property? If you cannot furnish your income documents, does it mean you cannot get this type of loan? Sure you can! And you don’t even need to give any income documents at all! No, this is not illegal, nor is this a back-door or secret approach which no one else knows about.
However, to get the loan without income documents, understand that there are other requirements and criteria.
Apply with a co-applicant: You get many benefits if you have a co-applicant. Having one gives lenders an additional layer of security, and for you it gives more chances of getting that loan you want. Co-applicants are seen as the prime borrower and their income proof is used instead of yours.
See your banking activities: Before making a loan application, check your savings bank accounts. This is because lenders study your bank statement thoroughly. You also need to maintain a minimum balance. Alternatively, you need to have enough funds.
Talk with your Relationship Manager: All bank account holders are assigned a relationship manager. They help you through the whole process of getting the loan, which otherwise can be confusing. Tell this professional that you cannot give income proof, but want to get the loan without it. They may be able to help.
You need to justify your lack of income documents: Lenders shall want you to let them know why you can’t furnish the documents. They won’t be taking your application at face value since it increases the risk for them if they give the loan. Make them understand why you cannot give the documents. They shall consider your previous income and from there calculate your capacity to repay.
Check other options: If nothing else works, you may want to check other ways to get a loan. This may take a bit of time, but so can the other options. Your additional options here include crowd funding, peer-to-peer lending, getting loans from fin-tech companies and platforms, and more. The benefit here is that the lenders here don’t pay too much emphasis on your income documents. However, you still need to study their terms and conditions extra carefully.