It’s really impossible to predict all the events that will unfold during one’s life and to be prepared for all of them in advance. There are times when we all run into some kind of financial emergency (a wedding or a medical complication) even though we did keep an emergency cash reserve aside. That’s the time when a Personal Loan could come in handy.
What’s a Personal Loan?
A Personal Loan is an unsecured loan that a bank gives an individual depending on his capability of repayment. The amount of loan can vary depending on the individual’s earnings and repayment capability. Generally, it doesn’t take too long to process a Personal Loan and the application process is also pretty simple if you have all the required documents handy.
Most banking institutions require a similar set of documents while applying a Personal Loan. Here’s the list of essential documents which you need to keep handy before approaching a bank for a Personal Loan.
Identity Proof
Anybody applying for a Personal Loan has to submit any of the following documents as identity proof:
- Voter’s ID Card
- Passport
- Ration Card
- Driver’s license
- Electricity bill
- Telephone/mobile bill
- PAN Card
- Life Insurance premium receipt
- Title deed/utility bill/municipal tax receipt
- Employer issued ID card
Proof of Age
The commonly accepted documents for proof of age while applying for a Personal Loan are:
- Voter ID card
- Passport
- PAN card
- Birth Certificate
- Secondary school certificate (Class 10)
- Ration card
- LIC Policy or premium receipt
Address proof
You will have to submit address proof confirming your present residential address at the time of applying for a Personal Loan. The commonly accepted documents include:
- Ration card
- Electricity bill
- Government-issued employee residence proof
- Telephone bills
- Ownership and title deeds of property
Income Proof
Submitting your income proof document is essential for anyone applying for a Personal Loan. Depending on whether you are a salaried or self-employed individual, you will have to submit the following proof of income documents:
If you are salaried:
- As a salaried individual, you will need to furnish a copy of your latest salary slips (3-6 months depending upon the bank) or salary certificate
- Form 16 and a copy of ITR for the last two years
- In case you got a job recently, then you will need a copy of the appointment letter or an employment certificate to show your job continuity
- You will also need to submit the last 3 months’ statements of your salary account
If you are self-employed:
As a self-employed individual, you will need to submit the following documents:
- Proof of employment certificate
- Last two years ITR, all certified by a chartered accountant
- Detailed financial audit of the enterprise that you run
- You also have to submit the last 6 months’ statements of all your bank accounts
Now that’s a complete list of documents which you need to keep handy when you plan to apply for a Personal Loan. Check if you are eligible for a Personal Loan right away!