Personal loans have emerged as one of the most popular choices among individuals that help to meet their financial needs like medical expenses, vacation, wedding expenses, housing renovation, educational expenses or debt consolidation. However, being an unsecured form of loan as it usually doesn’t require collateral, lenders often put up strict eligibility criteria for borrowers, based on their financial conditions. While financial institutions usually give out a list of required documents, it varies between different categories of applicants such as salaried people, self-employed individuals, NRIs, and even pensioners.
A loan application is considered complete only when the applicant has submitted all the requisite documents and it is all verified. While the type of documents required during loan application depend on the type of loan, in the case of personal loans, a person’s income statement and salary slips are considered the most important ones.
Scroll down to check the list of some generic important documents that borrowers need to submit along with their loan application. Providing all the proper documentation will facilitate the loan approval process more smoothly.
Documents required for personal loans
KYC documents: Applicant need to submit his photo identity proof such as Aadhaar card, passport, voter ID card, driving license, for the know your customer (KYC) verification.
PAN card: While applying for a loan, applicants mandatorily need to submit their PAN card details to the lender.
Salary slips: Considering the unsecured nature of personal loans, lenders will be seeking the salary slips of the applicant from the last three months to assure about his/her income source.
Bank statement: Applicants also need to submit their bank account statement from the last three months to inform lenders about their financial transactions and income proof.
Employee ID card: An employee ID card or the current employment letter is important while applying for a personal loan to provide assurance about the applicant’s job status.
Notably, after scrutinising all the submitted documents, lenders determine the eligibility of the loan applicant and further process the loan approval.