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Documents required for personal loan

Personal loan preparation guide: what documents do you need

This is a summary enumerating the documentation requirement one needs to follow for applying for a Personal Loan.

Before we get into specifics of the documents needed to apply for a personal loan, let us first understand what is classified as Personal Loan vs. other loans available in the market. This will help you in getting the personal loan easily.

  1. What is a PERSONAL LOAN: A Personal Loan is an unsecured loan, taken from any Bank or Non-Banking Financial Company (NBFC), by an individual for his individual needs, be it for family obligations; buying assets or just for expenses unforeseen. The key difference between this loan and other loans like a housing loan or car loan is that this loan is unsecured, i.e., not tied to any Individual asset as collateral security. The basis for providing and assessing Personal Loan is income level, employment history, credit history, and repayment capacity of an individual. Personal loans generally have a higher interest rate than other secured loans, primarily due to the risk of no collateral against the said loan.
  1. Where To Apply:Nowadays, a majority of Banks and NBFCs offer Personal Loans to creditworthy Individuals. You just need to fill an application online where you’re asked to entail your basic details. It’s better to check the interest rate that different banks charge in return of giving you a loan before applying for the loan from any bank. You can also check your eligibility criteria for the loan online, and once you complete all the required processes in a few days, your loan will be sanctioned by the bank.

What Are The Key Documents Required For Personal Loan?

Although it varies from Bank to Bank, most lenders have the following key requirements for documents to be submitted by an individual to avail a personal loan.

List Of Documents For Salaried Individual:

Proof of Identity:- Valid Passport / Valid Driving License / Voters ID for the proper identification of the person who is applying for the loan.

This is required to establish that the loan applicant is an Indian Citizen and preferably a taxpayer and is between the eligible age of 21 years to 60 years of age.

Residence Proof involving leave and license agreement or utility bill, not over 3 months or Passport (anyone).

This documentary proof requires one to establish the place of permanent and present residence to avail of a Personal Loan.

Bank Statement latest up to 3 months (where salary/income is credited).

This document provides information regarding the veracity of the Individual salaried applicants’ salary credited to his bank account and his/her banking history.

Salary slips for last 3 months.

These documents authenticate the income received is from the employer that the applicant has stated. It also helps in knowing about the loan repaying capacity of the person who is applying for the loan.

2 Passport Size photographs.

Preferably with 75 % face cover and applicants sign across the photograph as proof of identity. This will help in revealing your identity, and the bank can trace you in case you don’t pay the loan amount, or you refrain from paying the loan.

List of documents for Self Employees:

KYC documents required for personal loan: proof of identity, address proof, date of birth proof/ valid driving license/ voter ID/ valid Passport (anyone), original document for verification, and photocopy duly signed and self-attested. These documents establish personal identity, nationality, and eligible age required between 21 and 60 years.

Leave and License agreement/ utility bill as proof of residence or place of business. Income proof audited by a practicing CA with valid registration and CIN document number as per current norms.

Latest 6-month bank statement- passbook or internet statement duly signed and stamped by bank officials

Office address and proof of ownership. Property registration documents in the name of the applicant. Proof of continuity of business with current electricity, telephone bills on the name of the applicant at the said premises

If you are already a KYC-compliant Bank customer or Credit card holder with a good credit rating, you could get a personal loan with no documentation.

Even for non-customers, the documentation process is generally simple, quick, and hassle-free.

So now you know how you can take a personal loan without any hassle by following the steps listed above. Now you don’t need to be in direct contact with the managers or the bank staff also. Just go to the bank website, read the important steps mentioned there to avail the loan, complete all the formalities, check your loan repaying capability. Your loan amount will be sanctioned within no time by following these easy and hassle-free steps. So, go through all the above-mentioned tips to get a better understanding of the documentation for obtaining the desired personal loan with EasyFind – instant loan.