Essential Document Checklist for Personal Loan

If you want to avail personal loans from banks as well as from any financial institutions, then you need to submit certain documents for verification and processing of the loan. However, the documents may depend upon your profession, and at times, it may depend on the bank. Let us now get to know about essential document checklist for personal loan for faster approval.

Get Approved Faster: Documents Checklist For Personal Loan

By preparing a comprehensive document checklist, you can streamline your application and significantly reduce the time it takes to get approved. In this guide, we will walk you through the essential documents needed for a personal loan, ensuring you are fully equipped to meet your lender’s requirements.

Documents Required for Applying for a Personal Loan by an Indian

• Photo Identity Proof

1. 1. 1. Voter ID Card
      2. PAN Card
      3. Driving License
      4. Aadhar Card

• Residence Proof

1. 1. 1. Passport
      2. Utility Bills
      3. Ration Card

• Proof of Income

1. 1. 1. Three months’ payslip
      2. Bank statement of last three months

• Evidence of job continuity

1. 1. 1. Job offer letter
      2. Letter from HRD

• Financial Documents

1. 1. 1. Salaried Individuals
         1. Salary slips for the previous three months
         2. Form 16
         3. Bank statements of the last six months
      2. Self-employed Individuals
         1. Bank statement of both saving and current account for the previous year

• Passport size photo
• Application form

Documents Required for Applying for a Personal Loan by NRI

1. Passport size photo
2. Loan application duly filled and signed
3. Photocopy of Passport
4. Photocopy of Visa
5. Employment Proof
6. Salary Certificate of payslip for the last six months
7. Bank statement of NRO/NRE for the previous six months

What is the need for Document Verification?

When you apply for a personal loan, the financial institution assesses the background of the applicant. This assessment is carried out to figure out whether the recovery of the loan is possible from the applicant. The verification shows the financial stability of the applicant and helps the bank in analyzing credit risk. Last but not least, banks can have a clear idea of the applicant’s personal information in terms of age, address, income, employer, and employment.

A personal loan is unsecured loans. The banks don’t ask for any collateral so, in order to figure out the repaying standards, they carry out a precise investigation before moving ahead with the application of the loan. Online Personal loans also carry a sense of potential risk to the bank as the applicant can move on to be a defaulter in future or go fleeing to evade the repayment of loan availed.

In order to be very sure about the applicant, banks hire third-party agencies to carry out a proper investigation on their behalf.

The document verification process can also help the borrower at times. If the bank finds that the applicant has got a remarkable credit history, then it may decide to reduce the interest rates and offer some exclusive goodies as well.

Therefore, when applying for a loan, it is always necessary to submit proper documents to explore better opportunities. In most cases, the loan is approved on the same day of applying if all the filed papers are up to the mark. If you want to know more about personal loans, then you can check online personal loan eligibility.

Read Also: How To Avail a Paperless Personal Loan?