If you are looking for funds that can cater to multiple purposes, then a personal loan is the right option for you. Being unsecured in nature, a loan can easily be applied for without needing to provide any of your assets as collateral. Even the documents required for a personal loan involve less paperwork.
If you are opting for it, knowing what the documents required for a loan are can give you an idea regarding your eligibility for the loan as well.
Documents Required For Personal Loan From A Salaried Individual
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- Your employment proof.
- Your salary slip or income proof for the last 3 months.
- Bank statement for the last 3 months. Keep in mind that this statement should show your salary credited to your account.
- Form 16 of the current year. This form is a certificate which your employer provides you with after he deducts tax from your salary.
- Documents pertaining to income proof, address proof and identity proof. This includes both the PAN card and Aadhar Card.
- Your passport size photograph
Documents Required For Personal Loan From A Self-Employed Individual
- Bank statement for the last 6 months showing your income.
- Income tax returns for the past 2 years.
- The address proof of your office along with registration documents/ MSME/incorporation documents/GST registration.
- Documents such as PAN card/Aadhar Card/ Driving License/ Voter Card etc for your address and identity proof.
- Passport size photograph.
Thus, for both salaried and self-employed individuals, documents required for a personal loan are quite minimal. Based on these documents, the lender can ascertain your creditworthiness. If your documents are up to the mark according to the lender’s requirement, you will become eligible for the best offers and interest rates for the loan.
However, if your credit score is as low as 650 and you wish to get a personal loan without income proof then that can also be managed. Click here to know more about it.
Steps Required To Apply For Personal Loan
Of late, getting a personal loan has become quite easy and simple. Many lenders even provide the online application facility along with a software app that can easily be downloaded on your mobile phone.
- Download the lender’s official app for a loan.
- Enter details pertaining to your identity and address proof.
- Enter your average monthly income.
- Put details regarding the payment structure which will include the tenure and EMI.
- Upload the necessary documents.
- Once the verification process is completed, your loan amount will be approved immediately and the amount will be transferred to your bank account.
Benefits Of Personal Loan
Getting a personal loan comes with numerous advantages. Apart from the hefty loan amount which it provides there are plenty of other benefits which make the overall process of getting a loan more accessible.
Quick Disbursal
One of the advantages of getting a personal loan is that you can get the loan amount quickly. With the online facility which many lenders provide, you do not even have to leave your home to apply for the loan and the amount too will be directly transferred to your bank account.
No Collateral
Many loan options require some kind of security in the form of mortgage or collateral. If you are not able to pay the loan on time the lender has the right to sell off your asset to recover the amount.
In the case of a personal loan, however, no such thing is required. You can easily get the loan amount without needing to put any of your assets at risk. Even if you fail to make the payment on time you can rest assured that your assets will remain safe.
Minimal Documentation
Documents required for a personal loan are quite minimal. With the paperwork involving nothing more than providing basic information, you can save yourself from numerous hassles. Since the documentation is minimal, the time required to process the loan also becomes fast.
Competitive Interest Rates
Besides the minimal documents required for a personal loan, it also offers some of the best interest rates in the market. They can be easily used to settle debts you have accrued from other types of loans such as credit card dues. This is because credit cards charge a higher rate of interest than loans. So, by taking a personal loan you can not only get a loan at better interest rates but can also use it to pay the credit card dues and other such debts.
As credit card dues can easily destabilize your monthly budget, you can easily pay off the dues with a loan.
With a personal loan, you can easily cover your various expenses requiring a heavy budget such as medical emergencies, educational costs, or house renovation. A loan will ensure that you never compromise on anything just because you are running short of funds at present.
