List of Documents Required for Personal Loan Application in India

So, you are thinking about taking out a personal loan, but you are not quite sure what documents you need for the loan? Well, you've come to the right place! It might just be a matter of minutes before the actual loan is processed, but preparation requires some time.

However, when you have decided to go ahead with your application, you need to gather certain personal loan documents to complete the process effortlessly and avail yourself of the credit you need.

The easiest way to go would be to apply online. Post personal loan application, an executive visits you from the bank to collect the documents and verify details. Following are the documents required for a personal loan.

List of Documents Required for Salaried Employees

• Proof of Identity

  It could be your birth certificate, passport, driving license, voter identity card, PAN card or Aadhaar card. You can present any one of these as your proof of identity.

• Proof of Address

  The bank requires proof of the place you reside in, as this will be the address at which communications will be delivered. As proof of your address, you can present your utility bills, passport, bank account statement, passbook, and Aadhaar card.

• Proof of Employment

  The bank is not asking for any security against a personal loan. Still, it must ensure that you have the income to repay the loan. For this purpose, you need to furnish your employment details. Proof of employment requires your employee identity card and employee visiting card.

• Duration of Employment

  After stepping out of college, you get a job and soon want to purchase a car. However, the bank doesn’t accept applications for such a short job duration. Most banks look for at least a year or more of employment.

• Work Experience

  Along with the duration of employment, the bank needs to be sure that you have been a steady employee and not one skipping jobs or going jobless for extended periods. You will have to furnish appointment letters from previous employers.

• Credit History

  If you have ever defaulted on a loan, it can go against your application strongly. Your credit history is checked with banks where you have a relationship. In some cases, you also need to present your Form 16 for the current year and the previous year.

• Proof of Income
• Copy Of Form 16
• Last 3 Months' Bank Account Statements or Salary Slips or Both

List of Documents Required for Self-employed Applicants

• Proof of Income
• Proof of Residence
• Proof of Business Existence
• Proof of Residence Ownership
• Proof of Photo Identity
• Bank Statement
• Proof of Office Ownership
• Proof of Investment
• Proof of Office Address

List of Documents Required for NRI Applicants

• Proof of Income
• Proof of Employment
• Proof of Identity

List of Documents Required for Pensioners

• Proof of Identity/Age
• Proof of Income
• Proof of Address

In conclusion, when applying for a personal loan, it's essential to have the necessary documents ready to expedite the process. You can only be approved if all of your loan documents are cross-checked, your information is validated, and the bank is certain that you will return the loan.

Whether it's proof of identity such as a passport or driving license or proof of address like a utility bill, these documents play a vital role in ensuring a smooth and efficient application process. When all of the requirements are completed, and the information is validated, the loan is provided to the customer.

By preparing these personal loan documents in advance, you can streamline the verification process and secure the credit you need in a timely manner. As a consumer, you should make every effort to repay the loan as soon as feasible. This not only relieves you of the loan load, but it also maintains a clean credit history.

FAQs

1. Am I required to submit my original KYC documents when I apply for a personal loan?

   Nope! You just need to submit photocopies of your KYC documents (usually self-attested). However, it's a good idea to keep the original documents handy in case the lender needs to verify the copies with the originals during the application.

2. Are there any documents that I should submit post-sanction or pre-disbursement of my personal loan?

   Yes, you need to submit some documents after your personal loan is approved. This includes the signed loan agreement, and either an ECS form or a Standing Instruction (SI) request to the lender.

3. Are the documents required to apply for a personal loan the same across lenders?

   When applying for a personal loan from different lenders, the required loan document list may vary. During the application process, you may be required to provide additional documentation. So, the personal loan documents checklist mentioned in this blog is only a suggestion and may change depending on RBI standards.

4. Is the documentation process minimal for pre-approved or instant personal loans?

   Yes, indeed! Obtaining an instant personal loan with minimum documentation is a significant benefit. Suppose you are currently a bank customer and fulfil specific requirements such as income, credit history, and work status. In that case, you may be eligible for pre-approved loans.

   Because the bank already has your KYC information on file, you won't have to go through a lot of personal loan procedures when applying for a pre-approved personal loan. In that regard, it is rather convenient!