Personal loans have surfaced as the easy way out in today’s fast-paced world to deal with emergencies or meet one’s dreams. Whether it is about marriage, house renovation, or a medical bill, instant liquidity is available through a personal loan. A person needs to know what documents are required for a personal loan before applying, and that way, no hitch occurs while the process goes on. It ensures smooth approval and avoids any undue delay.
If you propose to apply through a personal loan app in India, here is a list with a detailed check of what it takes to be submitted at the time of the proposal:
1. ID Proof
The lenders look for government-issued identification documents when verifying your identity. Mostly accepted ID proofs are listed below:
- Aadhaar Card
- PAN Card
- Passport
- Voter ID
- Driving Licence
2. Address Proof
To prove your domicile, you need to have proof of address. Most proofs accepted are:
- Utility Bills (electricity, water, or gas)
- Rent Agreement
- Aadhaar Card
- Passport
- Your bank statements with your address,
3. Income Proof
Lenders would like to ensure you have a steady income for loan repayment. The nature of proof of income varies between salaried and self-employed applicants.
For Salaried Applicants:
- Salary slips of the last 3–6 months
- Bank account statements showing your salary deposits
- Form 16 or Income Tax Returns (ITRs)
For Self-Employed Applicants:
- ITRs for the last 2–3 years
- Audited financial statements
- Business registration proof
- Bank account statements for your business
4. Bank Statements
Lenders usually request the last 3–6 months of bank statements. They use them to assess your spending habits, income consistency, and overall financial health.
5. Proof of Employment or Business
Employment certificates or appointment letters are sometimes required for salaried people. Business registration certificates or GST filings for self-employed applicants are required.
6. Pictures
All lenders require passport-sized photographs as part of their documentation.
7. Loan-Specific Documents
Depending on the type of personal loan you are applying for, specific lenders may require extra documents. For example, supporting bills or invoices will be requested if your loan is for educational or medical purposes.
Why Preparation of Your Documents Matters
All the documents required for personal loan ensure hassle-free processing. Incomplete or missing documentation may result in rejection or a delay in processing. Additionally, every other lender might have some additional criteria; hence, one should check that out from them beforehand.
Application via Personal Loan App
Using a personal loan app in India makes the process much simpler. Most apps give detailed guidelines on the required documents, allow you to upload them digitally, and offer instant approval. Therefore, you do not need to visit the bank several times, and disbursal is faster.
Final Words
A personal loan is a good financial tool if used appropriately. Preparing the necessary documents increases your chances of approval and helps establish trust with the lender. Using digital platforms, such as a personal loan app in India, can make this process hassle-free and quick.
With the checklist in mind, be sure your documents are updated and available before applying. A prepared applicant is one step closer to achieving his financial goals.
