Savings do not always help to meet urgent financial requirements. In such instances, it is best to opt for Personal Loans. They are the most sought-after credit option that lets you borrow money without collateral submission. If you meet the bank’s requirements, the loan is disbursed instantly. The application process is simple and easily manageable through Online Banking.
The key to a smooth sailing application is being prepared. Hence, check the Personal Loan documents before applying. You need to follow it up by arranging the required documents. Once you have the paperwork handy, the application procedure becomes easy. Consider the following checklist:
ID proofs
Completing the KYC formalities is essential. Every bank needs to do this regardless of the service provided. The same applies to Personal Loans. Here, you submit your PAN Card, Aadhaar, driving license, voter's ID, or passport. If you have a co-applicant, you need to furnish their identity proof as well.
Address proofs
You can submit any government-approved ID card that includes your address. It will be accepted as address proof. If not, you need to attach utility bills or ration cards along with the Loan application. If you are applying for a Loan for the self-employed, you also need business or office address proof. This includes maintenance bills, electricity bills, property documents, etc.
Employment proofs
Your employment stability is equally considered as revenue. Hence, Loan providers need you to stay employed for at least two years. If you are self-employed, your business must be operational for at least three years. Some banks also extend this limit for up to five years. Ensure to check the same before applying. Tax returns and income statements are the best to prove this.
As a salaried individual, prove your job continuity through an employment certificate, experience letter, or appointment letter.
Income proofs
This is the primary paperwork that differs from Instant Personal Loan for the salaried and the self-employed. Check which applies to your employment status before applying. The standard income proofs banks consider are:
- Salaried: Salary slips for the last three months, bank statements for the last six months, employment certificate, form 16, etc.
- Self-employed: ITR for the previous two years, audit report, balance sheet, profit and loss statements, six-month bank statement, etc.
Additional paperwork
If you have investments in Stocks, Assets, Fixed Deposits, etc., you can add them as your income source. As a business owner, you need to prove the existence of your business by submitting property details, a company registration license, proof of shop establishment, etc.
You also get access to eligibility and EMI calculators to understand the Loan amount and EMIs payable in a better way.
