The easy accessibility to personal loans has made financing convenient and appealing. With simple eligibility requirements and quick loan processing, a personal loan stands as one of the best financial instruments that can help fulfil your urgent needs. Since personal loans are unsecured loans, you only need a few key documents to get your loan processed and if you choose to apply through an online loan app, then you just have to furnish a digital copy of these documents. The fintech companies rely on advanced AI and machine learning to scan your documents and verify them within seconds. This not only makes your loan process quick but also saves you from the hassles of submitting piles of paper.
Since, a financial crunch can hit you from the blue and you may need to avail a personal loan anytime, it is always wise to know the key documents needed to get an instant loan and keep these documents handy by saving them on the cloud. Missing any of these documents can result in your loan rejection.
List of Key Documents to Submit for Quick Personal Loan Approval
Loan application form
The first and foremost document that you must present to the lender is a personal loan application form duly filled with all the necessary details. You must fill in the form accurately and true to your knowledge, providing all the personal, occupational, and financial details correctly. It is crucial that you re-check the filled-up form for accuracy of information before submitting it as any inadequate, incorrect, or missed information can mean delay or a complete denial of your loan.
Proof of identity
As a part of KYC or Know Your Customer process, you need to provide a handful of documents to establish your identity with the lending institutions. Several documents are eligible for consideration as proof of identity when submitting your personal loan application. Below given are some of them.
– PAN card
– Voter ID card
– Aadhaar card
– Passport
– Driving license
– Birth certificate issued by the authority
Once you have submitted one or more of these documents as your proof of identity, the KYC process also needs you to provide a suitable proof of address.
– Proof of address
Similar to the proofs of identity, you need to provide a proof of your present and permanent residential address as well to your lender for KYC completion. The eligible documents for the purpose include the following.
– Aadhaar card
– Voter ID card
– Driving license
– Passport
– Photo passbook
– Ration card
You can also check for other officially valid documents eligible as proof of your address for KYC completion. In case you are applying for personal loan with a lender you already have transactional relations with, you may not need to complete a separate KYC process although you may need to provide a photocopy of your applicable documents.
Occupational proof
You also need to provide eligible documents as a proof of your occupation. Depending on whether you are a salaried or a self-employed individual, the document requirements can vary. They can include the following.
– For salaried individuals, proof of employment includes employment ID card, appointment letter, and salary slip.
– In the case of self-employed individuals, the documents proving occupational existence include the likes of registration certificate for the company, partnership agreement, memorandum of association, etc.
Along with these, you also need to establish your financial stability with the lender for verification of your repayment capacity and subsequent loan approval as per it.
Proof of financial stability
Every individual needs to hold a minimum monthly income for the purpose of availing a personal loan. The requirement varies from one lender to another, and with the likes of online loan apps it can be as low as Rs.15,000 per month for the applying individual. You need to provide necessary documents to prove that you fulfil this minimum monthly income requirement with stability. For salaried individuals, it can be the salary slip while self-employed individuals need to provide the financial statement of their company. Both applicants can provide their bank account statements for the last six months to establish their financial stability.
– Proof of work experience
You also need to prove to the lender that you have been employed or working for at least a set period, the minimal being last 6 months. You need to provide the necessary documents associated with your occupation for the purpose.
Conclusion
Once you have arranged all the necessary documents, you can proceed to apply for your personal loan with your selected lending institution. When applying through platforms like online loan apps, documentation is further simplified through paperless document submission online, which also hastens the entire loan processing.