Personal Loan Application Documents

 

Personal loans are one of the most-frequently bought lending products from the banks and NBFCs in India. They can be used for all purposes ranging from vehicle purchase, wedding expenses, loan repayment, vacations to even medical procedures. However, lenders will need to determine your financial stability and analyze the credit risk before approving and disbursing a personal loan. This is done through the pertinent documents submitted by you. A personal loan requires the least number of documents compared to the other loan types and these documents are required to verify details like income, age, employer and address. As personal loans are unsecured in nature, implying that the lender doesn’t take anything as a collateral, the lender will still need to be double sure about the facts stated by you.

Please note, the documentation requirements for personal loans in India may vary from lender to lender. However, there are some standard set of documents that are requested by all lending establishments. Let’s go through them below:

Filled-up personal loan application form:

Please make sure that you fill up the form exactly as required by the bank or NBFC. This form should also have your passport size photograph affixed.

Photo ID proof:

You’re free to use any of the following as your photo identity proof: passport, driving license, voter ID card, aadhaar card or PAN Card. Please make sure that your photograph on the proof is clearly visible and can be easily identified with you. If any of these photo identity proofs has your latest address on it, you could use it as your residence address proof as well.

Proof of residence:

You can use either of the following documents as your valid residence address proof: registered rent agreement, passport, utility bill, driving license, aadhaar card or voter ID card. Any of these documents can also double-up as a photo ID proof if it has your clearly visible and identifiable photograph on it. Please note, if you’re using utility bill copy as your residence proof it should be of up to last 3 months. And registered rent agreement is not the same as a notarized rent agreement.

Bank statement:

The lender would also require you to submit your last 6 months or 1 year’s bank statement showing salary paid by the employer as well as EMIs paid towards outstanding debt (if any). This is to confirm that you’re being regularly paid a salary by your employer and have a stable income to pay your personal loan EMIs on time.

Cancelled cheque:

The lender might also ask you to furnish a cancelled cheque for bank account validation.

Investment proof/s:

As evident, these are proofs of any investments you might have made, such as mutual funds, LIC, equity shares, property etc. These investments can be used as collaterals, giving the lender something to fall back on (in case of default) and to sweeten-up the personal loan deal.

Job continuity proof :

A copy of the appointment letter and a validation letter from your present company’s HR department. You’d also need to furnish your experience certificates from the past organizations you’ve worked with, as well as the appointment and relieving letters from those organizations. In case you’ve been employed with the current organization for less than 1 year and weren’t employed anywhere before it, the lender would require only your appointment letter issued by the present company’s HR department.

Income proof:

Your last 3 months’ salary slips, last 6 months’ bank statement and last 2 years’ Form 16 will be used as your valid income proofs.

Filled-up personal loan application form:

Please ensure that you fill up the form exactly as required by the bank or NBFC. This form should also have your passport size photograph affixed.

Photo ID proof:

You’re free to use any of the following as your photo identity proof: passport, driving license, voter ID card, aadhaar card or PAN Card. Please ensure that your photograph on the proof is clearly visible and can be easily identified with you. If any of these photo identity proofs has your latest address on it, you could use it as your residence address proof too.

Proof of residence:

You can use either of the following documents as your valid residence address proof: registered rent agreement, passport, utility bill, driving license, aadhaar card or voter ID card. Any of these documents can also double-up as a photo ID proof if it has your clearly visible and identifiable photograph on it. Please note, if you’re using the utility bill copy as your residence proof it should be of up to last 3 months. And registered rent agreement is not the same as notarized rent agreement.

Cancelled cheque:

The lender might also ask you to furnish a cancelled cheque for bank account validation.

Investment proof/s:

As evident, these are proofs of any investments you might have made, such as mutual funds, LIC, equity shares, property etc. These can be used as collaterals, giving the lender something to fall back on (in case of default) and to sweeten-up the personal loan deal.

Office address / ownership proof:

Some of the documents that can be submitted in this regard include utility bills, maintenance bills and/or property documents of the office.

Business existence proof:

The business existence proof involves documents like SARAL copy for the last 3 years, company registration document or document of registration under the Shop Establishment Act.

Income proof:

When it comes to self-employed professionals, banks and NBFCs usually ask for last 3 years’ IT returns including all accounts-related documents like P&L statement, balance sheet etc. as income proof. They expect all accounts and income related documents to be duly attested by a Chartered Accountant.

Bank statement:

You’d be required to submit last 1 year’s bank statement, both of your personal as well as business account, clearly reflecting the transactions as recorded in your business accounts. These statement/s must also show any EMIs that you’ve been paying towards any outstanding debt.

Filled-up personal loan application form:

Please ensure that you fill up the form exactly as required by the bank or NBFC. This form should also have your passport size photograph affixed.

Photo ID proof:

You’re free to use any of the following as your photo identity proof: passport, driving license, voter ID card, aadhaar card or PAN Card. Please ensure that your photograph on the proof is clearly visible and can be easily identified with you. If any of these photo identity proofs has your latest address on it, you could use it as your residence address proof too.

Proof of residence:

You can use either of the following documents as your valid residence address proof: registered rent agreement, passport, utility bill, driving license, aadhaar card or voter ID card. Any of these documents can also double-up as a photo ID proof if it has your clearly visible and identifiable photograph on it. Please note, if you’re using utility bill copy as your residence proof it should be of up to last 3 months. And registered rent agreement is not the same as notarized rent agreement.

Bank statement / Income Proof:

The lender would also require you to submit your last 6 months or 1 year’s bank statement showing regular inflow of income from some source (including pension), as well as EMIs paid towards outstanding debt (if any). This is to ensure that you’re regularly earning something each month and have a stable income to pay your personal loan EMIs on time.

Cancelled cheque:

The lender might also ask you to furnish a cancelled cheque for bank account validation.

Investment proof/s:

As evident, these are proofs of any investments you might have made, such as mutual funds, LIC, equity shares, property etc. These investments can be used as collaterals, giving the lender something to fall back on (in case of default) and to sweeten-up the personal loan deal.

Proof of age:

Your photo ID proof or your residence proof like passport, PAN card, aadhaar card, driving license or voter ID card can double up as your age proof too.