For meeting any of your financial needs, banks and non-banking financial companies offer one of the best and flexible loans in the market, Personal Loans. There are many reasons why this loan enjoys such popularity among people.  It is an unsecured loan, which lenders require no security. These loans are unconditional, i.e., you can use the funds for any purpose that includes wedding expenses, medical treatment, travel, or any purchases.

Personal loans can also be used to pay off existing equated monthly instalments and other debts with higher interest rates. However, specific negative uses of funds like illegal or criminal activities are prohibited across the board by all the lenders. The major reason why the loan is popular is owing to its simple documentation process. Simple Know Your Customer (KYC) Personal Loan documents and income proofs are enough for the lender.

You can apply both online and offline. Once the lender processes the loan application, the funds get disbursed into your Bank Account.

Documentation:

Some of the standard documents required for Personal Loan for a salaried employee are:

  • Duly filled application form
  • Passport size photographs
  • ID proofs like Passport, Voter ID, Aadhaar Card, PAN Card, Driving License, passbook attested by the bank manager, ID card issued by your organization, ID card from your university
  • Resident proofs such as Passport, Ration Card, Aadhaar Card, utility bills, property tax receipt, Home Loan agreement, rental agreement
  • Signature proof includes Passport, PAN Card, cancelled cheque, bank verification letter
  • Age proofs consist of Passport, Voter ID, school leaving certificate or any other documentation
  • Salary slips of the last three or six months
  • Form 16 for the previous three years
  • ITR for the last three years
  • Bank statement for the previous six months
  • Copy of ID card provided by both Central and State Government, Defence etc.

Some of the standard Personal Loan documents concerning independent professionals are:

  • Duly filled application form
  • Passport size photographs
  • ID proofs like Passport, Voter ID, Aadhaar Card, PAN Card, Driving License, business ID
  • Resident address proofs such as Passport, Ration Card, Aadhaar Card, utility bills, property tax receipt, Business Loan agreement, rental agreement
  • Signature proofs include Passport, PAN Card, signed cancelled cheque verified by the bank
  • Age proofs consist of Passport, Voter ID, school leaving certificate or any other documentation
  • Balance Sheet and Profit and Loss statement for the past two or three years
  • Audited financial statements if required as the case may be
  • Proof of business continuity
  • Office address proofs include rent agreement or purchase documents
  • Bank statement for the past six months
  • Income Tax Returns of last three years

These, along with Personal Loan eligibility, are important for the loan to get approved instantly.