A Comprehensive List Of All The Documents You Need To Apply For A Personal Loan In India
A personal or a private loan is generally an unsecured loan with which you can fulfil personal needs such as medical costs, consumer debt, home improvements, and so on. When trying to apply for an instant money loan, all applicants are required to submit certain key documents, which vary depending on the lender.
Furthermore, the required documents for an instant money loan vary depending on whether the claimant is employed full time, self-employed, or a senior citizen. Before giving you any type of loan, all banking institutions will verify to see if you have the ability to pay back or not.
So, how do they make this decision? They take into account many criteria, but perhaps the most crucial is a CIBIL score that allows them to make basic calculations to ascertain if you have the financial capacity to pay back the loan. You can also confirm your private loan eligibility by using one of the many free online loan eligibility calculators.
Documents Required For an Instant Money Loan
It is time-consuming to gather a slew of documents required for loan approval. Conversely, take the easy route and apply for an instant money loan online. You can register yourself on the lender’s app/website, fill in the application form for the loan, submit soft copies of documents with KYC information, and wait for the verification in real-time.
When the creditworthiness of the prospect checks out, the lender credits the money to the borrower’s account upon approval. Income verification is required to corroborate the credit score, which indicates an individual’s ability to pay back the loan in EMIs on a regular basis. When compiling these documents, make sure that your age is between 21 to 58 years, irrespective of if you are a salaried or self-employed individual, along with a monthly salary of at least Rs. 15,000.
Before you submit soft copies digitally, verify the legitimacy of your documents before doing so. If the documents are discovered to be fraudulent, you may lose the opportunity for an instant money loan approval, which will also have an impact on your credit score.
List of Documents Required for Salaried and Self-Employed Applicants
If you are a salaried individual, then you will have to ensure that you meet the eligibility criteria for a personal loan before you can apply for it. The factors that ascertain this eligibility are:
- Profession: Salaried individuals employed in private, government, self-employed professionals like chartered accountants, doctors, architects, etc.; public sector employees from public sector undertakings, and local and central bodies.
- Eligible age: 18–60 years
- Minimum income for loan eligibility: ₹ 12,000 per month
- Minimum credit score required: >=690
Once you know that you fulfil the required criteria, the documents that you have to procure to this end are:
- A duly filled application form.
- KYC documents for proof of address, such as Aadhar card, voter ID, and driving license.
- Identity proof documents such as permanent account number (PAN) card, Indian passport, electoral photo identity card, ration card, or birth certificate.
- Salary slips of the last three months.
- Bank account statements of the last six months of your salary account.
After you have submitted these documents, the loan amount will be disbursed to your salary account via bank transfer in 3–15 working days. The loan amount is to be repaid in the form of a fixed EMI whose terms are decided prior to the sanctioning of the loan. You might have to pay an additional processing fee which is usually 2% of the loan amount.