Documents Required for Personal Loan: Salaried & Self-Employed

Are you looking for funds for incurring your children's education expenses, home renovation, wedding, medical, travel expenses, and debt consolidation? Personal loans are unsecured loans that can be applied easily to manage the money requirement.

Also, personal loan documents vary from bank to bank. In this article, I will discuss the documents needed by different individuals like NRIs, self-employed, salaried, and pensioners to apply for a personal loan.

Importance of Personal Loan Documents List

It is necessary to provide documents to the bank to get the loan instantly. The financial institutions review the documents and approve the loan accordingly. However, you must prepare all the documents for a personal loan, and the bank may require fewer documents. The incorrect document record may lead to the rejection of the loan. Personal loan documents for salaried employees are essential for a hassle-free and instant personal loan.

Personal Loan Documents List

The documents required for a personal loan comes majorly in four categories:

  • Identity Proof- The documents must verify the applicant's identity to check the authenticity and decrease default risk.
  • Age Proof- The loan duration depends on the applicant's age. Hence, the financial institution asks for age proof to validate your age.
  • Address Proof- The lending financial institution asks you for the residential address during applying for the loan. You can submit it as one of the personal loan documents.
  • Income Proof- The amount of the loan depends on your income. It is a binding document to get approval on the personal loan. The bank needs different documents as per their requirement and the nature of the applicant, such as self-employed, salaried, and pensioners.

List of Documents Required for Salaried Employees

The documents for a personal loan for salaried professionals are mentioned below:

  • Photo Identity Proof- You can submit any proof of identity like a PAN card, passport, voter ID, driving license, and Aadhaar card.
  • Income Proof- You are required to deposit documents for income, like bank statements for the last six to 3 months and salary slips for the previous three months.
  • Address Proof - You must also submit address proof for applying for personal loans for salaried employees, like telephone bills, water, gas bill, passport, ration card, driving licenses, and Aadhaar cards.
  • Residence Ownership Proof - Your bank will ask to deposit any one of the following documents electricity bill, maintenance bill, and property documents
  • Tax Paid - You can deposit either form 16 or the IT return of the last two years. These documents are required to check the creditworthiness of the applicant.
  • Proof of Continuity of Job - You can deposit an appointment letter, employment certificate, and experience certificate.
  • Other Documents - The financial institution may also ask you to submit a passport sized colored photograph, sanction letter, or payment track record and proof of investments like fixed deposit, fixed assets, and shares.

List of Documents Required for Self-Employed Applicants

The personal loan documents required must be submitted as per the need of your bank. These documents are mentioned below:

  • Photo Identity Proof- The financial institution can ask you to submit any of the papers: PAN card, passport, driving license, Aadhaar card, and Voter ID
  • Proof of Ownership of Residence - The documents like electricity or water bill and property documents.
  • Photo Identity Proof- The personal loan documents for identity proof can be a PAN card, driving license, passport, Aadhaar card, and Voter ID.
  • Address Proof - The address proof can be submitted, such as a ration card, utility bills such as water, telephone, or gas bills, passport, Aadhaar card, and driving license.
  • Office Address & Ownership Proof - You can deposit documents like electricity, maintenance, and property bills.
  • Income Proof - The income tax return attested by CA or current/saving account bank statement or passbook for the past year. The Profit & Loss statement, audited balance sheet, and tax audit report.
  • Business Existence Proof - You can submit a company registration license, GST registration copy, and shop establishment proof
  • Other Documents- The bank can also ask you to submit a colored passport-size photograph, investment proof (fixed asset, fixed deposit, shares), degree certificate, and existing loan documents.

List of Documents Required for NRI Applicants

The documents can be uploaded online for instant approval and disbursal in your account. The personal loan document list for NRI applicants is discussed below:

The documents can be uploaded online for instant approval and disbursal in your account.

  • Employment Proof - You can submit personal loan documents for employment proof from any of these documents: appointment letter, identity card, job contract, and official email ID.

  • Identity Proof - The visa or passport copy can be submitted with the loan application.

  • Income Proof - The financial institutions ask for the last six months' salary slips or bank statements.

So, you can submit the documents mentioned above required for a personal loan. However, the records required vary from bank to bank, and you must contact the bank for more information. Also, all these documents are a must to verify the personal and financial details of the applicant. Once you get the approval on loan, the amount comes within 24 hours.

List of Documents Required for Pensioners

Contact your bank if you are a pensioner looking for a low-interest-rate personal loan. The bank requires the following personal loan details:

  • Age or Identity Proof - You can submit the documents like a passport, ration card, school leaving certificate, PAN card, birth certificate, Aadhaar card, driving license, and voter ID
  • Tax Paid Proof - The bank can ask you to submit the documents like form 16, income tax return, bank passbook, last six-month salary slip or bank statement, and pension payment order copy.
  • Income Proof- If you are applying for personal loans, then submit the income proof with loan application: Form 16, salary slip or bank statement for the past six months, bank passbook record of one year, income tax return, and pension payment order copy.
  • Address Proof - The bank requires address proof of personal loan documents like a driving license, passport, ration card, Aadhaar card, and utility bills.

Conclusion on Documents Required for Personal Loan

You might require funds at any time in your life. The finances are needed for incurring marriage, education, medical or travel expenses. It can also be required for debt consolidation and funds requirement at the time of need. Let me tell you about personal loans. These are unsecured loans that many banks and financial institutions offer.

However, they require documents to verify your credentials and ensure that they will repay the loan amount on time. So, if you are looking for a personal loan, you must contact your bank and check for various documents required for approval. Your loan may be disapproved if the bank doesn't find your documents authentic.

FAQS on Documents Required for Personal Loan

What are the basic requirements for a personal loan?

The critical personal loan requirements are a good CIBIL score above 750, reliable credit history, income, debt-to-income ratio, and processing fees. The lending organization may ask for documents for a personal loan.

What disqualifies you from getting a personal loan?

Various factors can be the reason for personal loan rejection. Income below 25,000 INR monthly, credit score below 750, job instability, false documents, pending loans, and poor credit history can lead to personal loan rejection.

Do you need proof of income for a personal loan?

You can get a quick disbursal of personal loan into your account even if you don't have income proof. The bank may require other documents like CIBIL score, guarantor, good relation with a lender, and income from other sources. Hence, you must know the personal loan documents list to get bank approval.

What is the most accessible loan to get approved for?

Some loans that get quickly approved are car title loans, personal installment loans, payday loans, and pawnshop loans. They all are short-term loans that lousy credit borrowers apply for.

Can I get a personal loan without ITR?

The persons who don't have ITR can contact NBFCs to get personal loans. The rate of interest provided by them is high. You can also get a personal loan against FD, bonds, and property. You must also contact the financial institution about the personal loan documents.

What is the eligibility for a personal loan?

Public sector employees, private companies, and central and local organizations are eligible for it. Also, people between 21 and 60 years with a minimum income of 25,000 can apply for personal loans. Also, the eligibility criteria vary from person to person. Hence, you can contact the bank.

Is a personal loan available for the self-employed?

Yes, the self-employed person can apply for loans. The documents required are photo identity proof, address proof, income proof, residence ownership proof, and tax-paid copies.