Processing personal loan applications will take minutes, but preparation needs more time. If you are looking forward to applying for a personal loan, there are a wide range of documents you need to prepare and show up to the lender to get final approval. The documents’ submission will help you get smooth approval of the loan.
Whether you apply for online or offline, every lending institution has a set pattern of verification. For example, if you apply for Bajaj Finserv personal loan, after the submission of documents, an executive from the institution will visit your home to verify all the details. Let’s check out the documents you need to keep handy before applying for a personal loan.
Proof of Identity
This is the most important and first document that you need to show to the lending institution. It could be a passport, driving license, birth certificate, voter identity card, PAN card or, now, it can be an Aadhaar card also. You need to present any of these documents to the organization.
Proof of Address
Bank, fintech companies or NBFCs all need proof of address for your residence. They consider your location as a further point of communication regarding the loan application. In order to furnish proof of address, you can use a passport, property papers, bank account statement or passbook, water bills, electricity bills or an Aadhaar card.
Employment certificate Mentioning Duration
The applicant’s job stability is important in getting quick approval for the loan amount. This is why you need to show an employment certificate or employment documents. The lending institution never asks for any form of security against the personal loan, but they just want to ensure you can repay it. This is why they ask fr employment details. It can be anything like your appointment letter, employee identity card, visiting card, etc.
This is again; you need to show this to show that you have been a steady employee. The work experience certificate shows how long you have been associated with a company without skipping jobs or remaining jobless for a long period. Here you need to provide all the joining and appointment letters from all previous employees.
Credit history shows that you don’t have any existing loans or have skipped paying the outstanding for any previous loan. The lending institution cross-checks your credit history with the banks you are associated with. In some cases, lenders ask to present Form 16 or ITR for the last two years.
After you submit all these documents and verify them by the agency, the lending institution will process your loan application. Only after completion of all the formalities the loan amount will be credited to the bank account of the borrower.
As a borrower, it is important to repay the loan timely and, if possible, try to pay a large chunk of the amount at regular intervals of time. This strengthens the profile, and you will be eligible for higher loan amounts. Please feel free to share your thoughts or queries regarding the discussion below in the comment section.