Which documents are required for a personal loan?


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Personal loans are always helpful to tide over from various financial emergencies and crises for individuals. Since it has no end-specific usage criteria, individuals can use a personal loan for anything personal or related to business. It is used for all kinds of small and big-ticket expenses by self-employed and salaried individuals. However, since it is an unsecured form of instant personal loan online, the eligibility criteria are very important for personal loans apply. It is important to complete the documentation process of a personal loan. Documentation is an important part of the eligibility criteria. Without documentation, the personal loan application will not be submitted and processed further. With the help of relevant important documents, the background verification of individuals is done to make sure that the background is checked before the lending process. The documentation processes for salaried, self-employed NRI, and pensioners are different. Let us check out all the lists of documents required:

 

Why is documentation important?

 

Documentation is very important for getting a personal loan in Pune, Bangalore, or anywhere else because it is unsecured and there is no collateral or security involved in it. Through documentation, it is easy to manage the background verification of individuals by the loan providers. Without checking employment, personal identification, financial health, and other related information, the lending process is not conducted. You must provide all the relevant copies of documents as required by the financial institutions.

 

List of documents required for salaried employees

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Proof of Identity

  • Passport
  • Voter’s ID
  • PAN Card
  • Driving License
  • Aadhaar Card

 

Proof of Residence

  • Passport
  • Aadhaar Card
  • Utility Bill
  • Ration Card
  • Driving License

 

Proof of Ownership of Residence

  • Property documents
  • Electricity bill
  • Maintenance bill

Proof of Income

  • Salary slips for the last three months along with Form 16
  • Bank statement for the previous six months where the salary has been credited
  • Proof of job continuity
  • Employment certificate from the current employer
  • Certificate of experience
  • Appointment letter from the current employer

 

Proof of Investment

  • Fixed assets
  • Shares
  • Fixed deposit
  • Bonds
  • Fixed deposit

 

Documents for self-employed individuals

 

Proof of Identity

  • Passport
  • Voter’s ID
  • PAN Card
  • Driving License

 

Proof of Residence

  • Passport
  • Aadhaar Card
  • Utility Bill
  • Ration Card

 

Proof of Residence Ownership

  • Property documents
  • Electricity bill
  • Maintenance bill

 

Proof of Office Address

  • Maintenance bill
  • Property documents
  • Utility bill

 

Proof of Office Ownership

  • Maintenance bill
  • Property documents
  • Electricity bill

Proof of Business Existence

  • Tax registration copy
  • Company registration license
  • Shop establishment proof

 

Proof of Income

  • Income tax return
  • Cash flow statement
  • Balance sheet
  • Audit report
  • Profit and loss statement
  • Bank statement
  • Savings and current bank statement for the past year

 

Proof of Investment

  • fixed assets
  • fixed deposits
  • shares

 

Documents for NRI applicants

 

Proof of Identity

  • Copy of your passport
  • Copy of your visa

 

Proof of Employment

  • Appointment letter
  • Job contract
  • Identity/Labour card
  • Official email ID

 

Proof of Income

  • Bank statements of the last 6 months
  • Salary slips or salary certificate
  • Recent passport-size photographs
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Documents for pensioners

 

Proof of Identity/Age

  • Ration card
  • PAN card
  • Voter ID card
  • Passport
  • Driving license
  • School leaving certificate
  • Birth certificate

 

Proof of Address

  • Aadhaar card
  • Passport
  • Ration card
  • Utility bills
  • Driving license

 

Proof of Income

  • Bank passbook
  • Bank statements of the last 6 months
  • Form 16
  • Income tax returns
  • Copy of pension payment order
  • Recent passport-size photographs

 

 Other eligibility criteria

 

  • Have a good credit score if you want smooth approval on your personal loan application. A credit score above 750 makes it easy for individuals to get personal loan approval. A good credit score individual signifies creditworthiness and no risk in borrowing. When you have an impressive credit score, you not only get approval easily but also an affordable loan. Make sure you can meet the eligibility criteria with the help of a personal loan easily.

 

  • Increase your source of income whether you are salaried or self-employed individuals. Income plays a vital role in understanding the credit eligibility of individuals. Individuals with a handsome salary always find it very easy to repay the personal loan within the loan tenure. On the other hand, individuals without sufficient income always default or miss making the payments. You must increase your source of income by generating extra revenue from freelancing or taking outsourcing projects.

 

  • Maintain your debt to income ratio below 30%. If you want to increase the chances of approval, you need to close all your existing loans. With existing loans, it will be difficult for you to get a personal loan approval since the risk is high for multiple EMI every month.
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Wrapping up

Get a smooth and quick personal loan apply, process for an instant personal loan online with Clix Capital. You need to have all the necessary documents to get a personal loan in Pune.

Read Full: What is considered a personal loan?


Ajay Singh

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