Friday, December 17, 2021

Which documents are required for a personal loan?


 The first requirement to start a personal loan apply process is the documents. Documentation is important to complete the personal loan application process. Whether you apply for a personal loan from a bank or a non-banking financial institution, documentation is essential and compulsory. If you are applying for a personal loan, it is important to arrange all the original copies as required by the loan provider. Starting from age proof to income and address proof, documentation is compulsory. Here’s a complete list of all the documents that you need to submit to your respective loan provider for getting an instant personal loan online.

Documentation for personal loans

The list of documents for banks and non-banking financial institutions may vary. Due to digital borrowing facilities, non-banking financial institutions may offer you a loan with just a PAN card or an Aadhar card. However, if you borrow from a bank, they are very particular about the lengthy documentation process. Below are some of the essential lists of documents that are common for both banks and non-banking financial institutions.

Age proof

        PAN Card

        Aadhaar Card

        Ration Card

        Voter identification card

        Passport

Address proof

        Voter identification card

        Electricity bill

        Utility bills

        Aadhaar card

        Ration Card

        Passport

Income proof

        Form 16

        Income tax return proof

        Salary slips

        Bank statement

        Formal documents from employer

Salaried Employee

        Form 16

        Employment proof

        Income tax return proof

        Salary slips

Self-employed individuals

        Business ownership papers

        Property ownership

        Tax proofs

        Cash flow statement

        Cash Reserve Statement

        Balance sheet

        Profit and loss statement

Why is documentation important?

Documentation is an important and compulsory process that a salaried or self-employed individual needs to go through. In order to have a smooth borrowing experience, it is essential that you arrange all the documents that would validate all the information and details about an individual. Documentation is done to run a background check on the borrower. A loan provider cannot offer a loan unless a proper background check regarding financial and personal verification is completed. The three most important aspects are address proof, age proof, and income proof. They are important for individuals to access personal loans. The personal loan application submission is successful only when all the required documents are submitted along with the application form. Therefore, it is important that you speak to your loan provider if you are not able to produce any documents. The required documents will be different for a salaried employee and a self-employed individual based on their type and source of income proof.

Read More: What is the easiest way to get your loan approved?

Wrapping up

Do you need a personal loan in Pune? If so, visit Clix Capital for a smooth personal loan apply process. From application to disbursement of an instant personal loan online, it takes around a few hours for the loan disbursement.

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