Whenever, there is a shortage of cash for any personal use, personal loans are the saviours. But, to be safe themselves, the lenders require a few set of documents from each applicant. The lenders have their own specific requirements, criteria and set of documents.
Below is the list of lenders document requirements and other details mentioned.
To apply for a personal loan an applicant needs to provide the following documents, atleast one document in each category.
Here is the list of common documents that should be submitted irrespective of which bank you are applying and where you are located.
a. Salaried Individuals: Latest 3 month's Salary Slips and Form 16, Bank Statements of 6 months.
b. Self Employed Individuals: Latest 1 year bank statement for both savings and current account.
Any individual who is employed by an institution and receives compensation in monthly salaries is an employee.
Lenders require the following set of documents from salaried individuals for a personal loan.
Self-employed professional and non-professional applicants need to provide the following documents for a personal loan.
One of the option to get money from reputed banks for all needs is through personal loan. And, to apply successfully for a personal loan an applicant needs to provide certain set of documents.
These documents helps lender (be it a Bank or a NBFC) to know and understand the financial stability of the borrower and analyse the credit risk. Apart from that it helps a lender know and verify all the details about the applicant such as age, income, address, employer and employment. It is on the basis of this a lender decides whether to lend or not to the applicant.
As personal loans are unsecured loans, the lender does not takes anything as collateral for the lending amount, hence there is always a potential risk of borrower defaulting or absconding on the loan. Hence to be double triple sure a lender asks for a certain set of documents so that it can learn and analyse the applicant and then decide.
The documents required for personal loan help a lender to understand the following about the applicant:
Once a lender has these details, they can know and understand the applicant better. And, using the information provided, they can come up with the best loan offer for the applicant.
As such, providing the required documents while applying for a personal loan, helps the applicant to get the best offer.
Above is the checklist for all the required documents for a personal loan.
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