A personal loan is an unsecured loan that an individual or entity can opt for their personal needs and requirements. For personal loan approval, the documentation process has to be passed, and that’s why you need to know about the necessary documents that you must have in order to get your personal loan sanctioned.
Documents Required For Personal Loan:
If you are a salaried Professional or self-employed, you need to submit the following required documents for your personal loan.
- Proof of Identity
Under Proof of Identity, any statutory issued photo document would work. Now, what all can be counted under the photo documents? It mainly includes a driving license, passport, PAN card, Voter ID card, etc.
- Proof of Residence:
Under Proof of Residence, the same documents as above would work, though just ensure that there’s your residence address on it. However, you can even apply with utility bills like electricity bill, water bill, and even your Ration card would do the work.
- Income Proof:
The income proof depends based on which category you fall in from the below:
- A) Salaried Professional – Keep your FORM 16 (certificate of tax deducted from salary), or the Income Tax returns of the past three years accompanied with the bank (in which salary is credited) statements of the previous 6-12 months.
- B) Self-Employed – Keep the last three years of income tax returns (ITR) ready along with the other necessary documents, and yes, not to forget the annual accounts.
Eligibility for a Personal loan
It is impossible to tell at the moment, whether or not you are eligible for the personal loan. If we have to sum up in two words, then we would just say “Credit Score”! Yes, it’s the whole game of maintaining a decent credit score, especially in this case as you are going for a personal loan.
The questions regarding loan eligibility and the loan amount can only be answered by the lender. If you have a good credit quality, trust us, you won’t have much issue in obtaining a personal loan. In most cases, you may even easily get a pre-approved personal loan sanction.
Is there a way to get a personal loan sanctioned online only?
Yes, a lot of lenders these days in the market have also started to adopt digitization for loans. The borrowers can complete the whole loan process online only. The documents could be uploaded in soft copies as per the details given. Most of your leading financial institutions and banks have taken the whole personal loan application process online only. In the current market, these days there are a lot of instant approval personal loan applications that have made it a lot easier to get your loan approved.
Requirement or necessity of original documents
You have to submit the photocopies of your original documents to the lenders. However, we recommend you to keep the original documents in handy, in case the lender has to validate the photocopies with the original documents. Beware of the individuals who ask you to upload/submit all original documents. Yes, at times, a few original documents could be required for some time just for verification purposes, though, other than that, originals are for you to keep with you only.
How to opt for a pre-approved personal loan?
As the name suggests, a pre-approved personal loan isn’t for everyone out there. For instance, if you are already a customer of a bank, then you may get the privilege of an instant personal loan or pre-approved loan as most of your documents are already up there in the database. Also, it depends upon credit history, repayment capabilities, income records, etc.
Are the documents required for submission going to remain the same with every lender?
In most of the cases, the documents are going to remain pretty much the same only. However, a few documents may go up and down, depending upon the lender and loan type. In certain cases, you may be asked for less or more documentation too. So, it all comes down to what you are looking for and where you are looking for. Hope that makes it clear!
Conclusion: We hope that you would have now understood about the different kinds of documents required for personal loan approval. That being said, just follow what we have said above and in a matter of time, your loan amount would be in your hands. So, what are you waiting for? Get the documents ready!