With the festive season in full swing, we can often find ourselves short on liquidity to meet the seasonal expenses. Some of us might have weddings to plan for or some trips to budget for along with the shopping that this season brings. While we can always try to plan and budget our finances in advance, there is another option for those of us who are not so good at financial planning.
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A personal loan is a great way to get help in meeting individual financial needs such as weddings, travel, medical expenses, higher education, home renovation, and many other things. Nowadays, credit is much more easily accessible for people and all one needs is to apply. Now to keep this process simple, let’s take a look at what kind of documents are required for a personal loan.
Identity Proof
One of the primary requirements for a personal loan is identity proof. This is required by the lender to verify the details provided in your application. Some of the ID-proof documents are a PAN card, aadhaar card, driver’s license, voter identity card, and passport.
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Residence Proof
A key detail, this is needed by the lender to verify the address mentioned on your loan application. If you are residing at a different address than your ID cards, you can always provide electricity bills or maintenance bills to prove your residence to the lender.
Income Proof
Whether you are a salaried employee or a self-employed individual, this document is required by the lender to assess the credibility of your application and also determine the amount of loan you can be provided. For income proof, individuals are needed to provide bank statements for the last six months (for the bank account where salary was credited) in addition to Form 16. Self-employed individuals can provide their bank statements along with their income tax returns furnishing details of their income, profit, assets, losses, and other details to the lender.
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Employment Proof
If you are employed with a company, the lender would want to see an employee ID card in addition to proof of continuity of employment. This can be shown via an employment certificate from the employer or an appointment letter. Self-employed individuals can provide proof of the continuity of their business by providing a copy of their GST registration and their company’s registration license.
Photographs
Like every other formal document, a personal loan application also requires you to furnish passport-size photos.
