Personal loans are unsecured loans provided by financial institutions and NBFCs under various conditions like income level, repayment capacity, profession, and credit history. However, you must keep several personal loan documents close at hand before applying for this loan.
Following are the documents that you will need when applying for a personal loan:
Documents Required to Get Personal Loan
Documents required for a personal loan by salaried or self-employed individuals are:
For salaried individuals
- Identity proof (includes PAN card, Aadhar card, passport, voter ID card, or driving license)
- Address proof (includes Aadhaar card, driving license, or ration card)
- Proof of residence ownership (includes electricity bill, property papers)
- Income proof (includes Form 16 and salary slips for last 3 months, bank statements for last 6 months)
- Job continuity proof (includes appointment letter, certificate of experience, and employment certificate)
- Proof of investment (includes fixed deposits, shares, and fixed assets)
For self-employed individuals
- Identity proof (includes PAN card, Aadhar card, passport, voter ID card, or driving license)
- Address proof (includes Aadhaar card, driving license, or ration card)
- Proof of ownership on residence (includes property documents, maintenance bill, electricity bill)
- Office address proof (includes property documents, electricity bill, etc.)
- Proof of office ownership (includes property papers)
- Business existence proof (includes registration licence, commencement certificate, and more)
- Income proof (includes Income Tax returns, audit report, balance sheet, and more)
- Bank statement (includes savings and recent bank statement)
- Proof of investment (includes fixed deposits, shares, and more)
Advantages of Personal Loan
After knowing the personal loan documents needed to get this credit, Let us know some of the benefits of getting a personal loan. Some of its best advantages are as follows:
- Fast approval
You can easily opt for a personal loan due to its fast application and approval process. Being unsecured, a personal loan does not require collateral from the applicant. To apply for this loan, you must visit the lender’s website, read the guidelines, upload the necessary documents, and wait until its approval. Usually, your loan will be approved within a day or two.
- Easy documentation
One of the most beneficial things about a personal loan is the simple and minimal documentation requirement. You only have to visit the lender’s website, check the required documents, and upload them accordingly. Usually, personal loan documents required are fewer than secured loans, but those documents must be genuine and flawless. Not just this, but the process of applying for this loan is also quite hassle-free and convenient.
- Quick transaction
Like fast approval, this loan gets disbursed into the applicant’s account quickly. After you apply for the loan, verify your documents, and get the final approval from the lender, you will receive the credit amount in your account within 24 to 48 hours.
- Meeting emergency needs
There is no telling when you will face an emergency requiring a large sum of money. It can be for medical purposes, due to any accident, or any other reason. To tackle such a situation, personal loan is a quick and secure option, especially if there is insufficient saving for emergency.
- No end-use restrictions
The most vital advantage of a personal loan is that it has no end-use restrictions. This means you can apply for a personal loan to fulfil all of your needs and wants. These can be a meeting a financial crisis, medical emergency, repayment of money, buying a car, wedding, funding higher education, etc.
Eligibility Criteria for a Personal Loan
Following are the eligibility criteria you must meet to get a personal loan:
- The applicant must be an Indian citizen
- Must be salaried or self-employed
- Must be associated to an MNC, private or public sector organisation
- The age range must be between 22 years and 67 years
- The salary must be between Rs. 22,000 per month
- Should retain a CIBIL score of 750 or above
How to Apply for a Personal Loan Online
Following are the steps to apply for a personal loan online:
Step 1: Check the terms and conditions
Step 2: Verify interest rates and other charges
Step 3: Compute the EMI
Step 4: Fill out the application form
Step 5: Upload the necessary documents
Step 6: Wait for approval
You must know the personal loan documents necessary and keep them close at hand before applying for this loan. Also, if necessary, you can visit multiple lenders’ websites and compare their loan offers and documents required to get the best deals.