A Documents Checklist for First Time Personal Loan Applicants

A Documents Checklist for First Time Personal Loan Applicants

Personal loan application processes are quite extensive and getting this step done in the right way can save a lot of time before the loan is approved. There are a few documents required for availing the personal loan that you should keep handy before you go about the process of availing a personal loan for the first time.

Checklist of Documents Required for Personal Loan

Irrespective of the category you belong to, location, address, and choice of financial institutions, certain personal loan documents are required for availing a personal loan at any financial institution. 

Personal Loan Documents Required

An applicant needs to provide the following personal loan documents, either printed or in digital format, to the lender. 

1. Proof of Identity

In India, a government-issued identity card is considered to be the most reliable proof of identity. You can submit any one of the following documents to verify your identity:

  • Passport
  • Aadhaar card
  • PAN card
  • Voter’s ID card
  • Driving license

2. Proof of Residence

Proof of residence is the second most reliable document issued by the government that can be submitted to avail a personal loan. The following documents are considered ideal in this regard:

  • Passport
  • Ration card
  • Utility bill (telephone bill/electricity bill/water bill/gas bill)
  • Registered rent agreement
  • LIC policy receipt
  • Letter from a recognized public authority verifying your address

3. Age Proof

Age is a vital factor for availing a personal loan. You must provide the supporting documents for the age declared in the application. You can furnish the following documents to verify your age: 

  • Pan card
  • Voter ID Card
  • Driving License
  • Adhaar Card
  • Birthday certificate
  • Bank passbook
  • 10th class mark sheet

4. Proof of Ownership of Residence

Submitting the proof of ownership of residence can surely help in convincing the bank of your strong financial foothold, especially if you are applying for a higher loan amount. 

Even though this is not a mandatory document but it can prove to be in favour of supporting your financial worth if you can furnish documents indicating that you are an owner, a part-owner or a co-owner of the house that you currently reside in. You can submit the following documents to prove the same:

  • Electricity bill
  • Property documents
  • Maintenance bill

Documents Required for Salaried Individuals

An employee is an individual that is employed by an organization and receives income in the form of monthly salaries. Financial institutions require the following additional personal loan documents from salaried individuals.

1. Income Proof 

As a salaried individual, you must submit the following personal loan documents to prove that you enjoy a steady source of income from the organization that you work for.

  • Salary slips for last 6 months
  • Bank statement for the last three months
  • Income tax returns for the last 2 years
  • The latest copy of form 16
  • Increment or promotion letter

2. Investment Proof

You must submit investment proof documents only if you hold any investments such as fixed assets, fixed deposits, bonds, and shares. These documents convince the bank in understanding that you plan your finances well, and are fairly disciplined, thus assuring them that you will repay your credit in a timely and systematic manner. 

Documents Required for Self-Employed Individuals

The self-employed professionals must provide the following personal loan documents for availing a personal loan.

1. Proof of Office Address

If you are a business owner or a self-employed professional, then you must need to submit proof of your office address. You can furnish one of the following documents to verify your office address:

  • Property documents (if any)
  • Maintenance bill (if any)
  • Utility bill (Electricity / Landline / Water Bills)

2. Proof of Business Existence

This document is only essential for business owners to offer proof of the existence of their enterprise, and for self-employed professionals to prove that they have an on-going practice. This can be proven by submitting one of the following documents: 

  • Copies of Salary form for the past 3 years
  • Copy of the shop establishment certificate
  • Any tax registration copy
  • Company registration license

3. Office Ownership Proof

You can submit one of the following documents for office ownership proof:

  • Property documents
  • Maintenance bill
  • Electricity bill

Documents Required for NRI Applicants

If you are an NRI, you too are eligible to apply for a personal loan. While not all banks offer personal loan to NRIs, some do. The applicant has to be an Indian resident, and the co-applicant is the NRI. The two have to be close relatives, and the NRI has to be in India while applying for the loan. You must submit the following documents to avail personal loan as an NRI applicant:

  • 1 passport size colour photograph
  • Personal loan application form duly filled
  • 1 copy of the passport as proof of nationality
  • 1 copy of the visa as proof of country of residence
  • Last 6 months NRO/NRE bank statement
  • Last 6 months salary certificate or salary slip
  • Proof of employment.

Besides the personal loan documents that are mentioned above, you should also be prepared with additional documents that will be required at the time of processing your loan application. These include:

  • One passport-sized photograph (in colour)
  • The sanction letter along with the payment track record, if you have an existing loan under your name.
  • Your professional degree certificate, if you are a self-employed professional, such as a doctor, lawyer, and so on.

If you need more information about personal loans, you should contact your nearest bank.

NOTE: This is a guest post and the tips/statements or other text is the opinion of the author only.

 

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