Know the List of Important Documents Required for a Personal Loan

Individuals can benefit greatly from personal loans as a means of obtaining financial stability. However, there are certain personal loan documents that you need while applying for a personal loan.

The personal loan document requirements can fluctuate from one financial institution to the next and from one type of borrower (such as a salary earner, sole proprietor, pensioner, or non-Indian resident) to another (NRI).

Keep reading to find out more about documents and low-interest personal loans.

An employee is any individual who is employed by an institution and receives a monthly salary. This personal loan paperwork is required by lenders from salaried individuals:

Acceptable Identification Documents (any of the following): Voter Identification Card/Passport/PAN Card/Driving License
Residence Verification (any of the following): Passport, Ration Card, and Utility Bill.
Voter Identification Card / Passport / PAN Card / Driver’s License.
Three months’ worth of pay stubs and Form 16 constitute income evidence.
Current Employment Certificate or Current Job Appointment Letter and Experience Certificate.
The most recent six-month statement from the bank.
1 passport-sized photograph in colour.
If there are current loans, provide a payment track record and a letter of authorization.
Completed personal loan application form

Documents required for self-employed individuals

For a personal loan, self-employed professionals and non-professionals must furnish the following personal loan documents:

Acceptable Identification Documents (any of the following): Voter Identification Card/Passport/PAN Card/Driving License
Residence Verification (any of the following): Passport / Ration Card / Utility Bill
Age Verification (any of the following): Voter Identification Card/Passport/PAN Card/Driving License
Office Address Verification: Property Deed / Repair Bills / Utility Bill
Office Ownership Documentation: Property Deeds / Maintenance Bill / Electric Bill
Business Existence Verification: Three-year-old Wage Slip / Storefront
Proof of income: the two most recent years’ tax returns with computations.
1 passport-sized photograph in colour.
Completed Personal Loan Application Form

Lenders (whether banks or NBFCs) can assess the credit risk associated with a loan application by reviewing the personal loan documents that are mentioned. In addition, it aids the lender in confirming the applicant’s age, income, address, and place of employment. That’s what makes the difference in whether a bank approves an application for a loan or not.