If you’re considering taking out a personal loan, you may be wondering what sorts of documents you’ll need to provide in order to apply. The good news is that the process is relatively simple and straightforward, and in most cases, you won’t need to provide more than a few key items. Firstly, most lenders will require that you provide proof of income in the form of tax returns, pay stubs, or bank statements. This is to ensure that you’ll be able to comfortably make the monthly payments on your loan.
Also, you’ll need to fill out a loan application, which will provide the lender with basic information about yourself and your financial situation. By following these steps, you can be sure that you have all the documents required for a personal loan. Sometimes, documentation may vary from lenders to lenders, and before applying you need to check with the respective lender to get a quick approval. Read on to know more about the documents required for personal loan!
What do you mean by a personal loan?
A personal loan is a lump sum borrowed from authorized financial lenders like NBFCs (nonbanking financial companies) on the verge of paying back in monthly installments as part of EMIs ( Equated monthly installments).
A personal loan is mostly the foremost choice to consolidate debts, to use it as an emergency fund immediately at times of unexpected expenses, or to recover savings.
Important documents required for a personal loan are:-
- The most important document required for a personal loan is a PAN card ( Permanent account number).
- Proof of identity – Aadhaar card, Passport, driving license, utility bill like gas or electricity bill, ration card, Voter ID ( identity), rental agreement, etc.
- Proof of signature – PAN card (Permanent account number), Passport.
- Proof of address – Voter ID( Identity), utility bill like electric or gas, rent agreement, ration card, passport copy, driving license, aadhar card.
- Previous consecutive six months bank statements are provided.
Additional documents required for personal loans by salaried individuals are:-
- Salary slips for the last three months are to be provided.
- Provide Form 16 or ITR (Income tax return).
Additional documents are required for personal loans by self-employed individuals as applicable for self or business entities.
- Income computation for previous two years, profit and loss account balance sheet.
- ITR (income tax return) for the previous two years.
- Proof of business – registration certificate, GST (Goods and services tax) number, and registration certificate.
- Clearance certificate or IT Assessment.
- TDS (Tax deducted at source) certificate (Form 16A) or Form 26 AS for income declaration in ITR( income tax return) or income tax challans.
The bottom line
Coming to an end, Now we know how crucial it is to have the right documents to avail personal loan and get easy access to the loan. One of the most recommended websites is the Buddy Loan website; it’s got an easy, accurate, and structural process system. You can also check Buddy Score for the best score display.