As we enter adulthood with a long list of responsibilities, it becomes necessary to borrow from banks to fulfil some major responsibilities. Loans come in a variety of forms, including personal loans, home loans, education loans, and car loans, among others. 

Understanding the loan application process, checklist documents required for a personal loan, and other prerequisites allow you to obtain loans quickly. The requirements for a loan vary depending on the type of loan you seek. Though the document checklist varies slightly between lenders, here is a general document checklist for obtaining various loans.

Personal Loan

Personal loans are unsecured loans used to meet personal financial needs such as medical expenses, vacations, higher education, wedding, home renovation, debt consolidation, and so on. The documents required by lenders for personal loans vary depending on whether applicants are salaried, self-employed professionals, NRIs (Non-Resident Indians), or pensioners.

Your income determines your eligibility for a personal loan. Eligibility criteria, age limit, and credit score may differ slightly from lender to lender. To get the best interest rate on personal loans, ensure you meet the basic eligibility criteria and have a credit score of 750 or higher. The following are the documents required for a personal loan in India.

A list of common documents required by various categories of applicants when applying for a personal loan is provided below:

Documents Required for Salaried Candidates

Salaried people must submit the following documents, along with a completed personal loan application form:

Photo Identification (Any)

  • PAN Card 
  • Passport
  • Aadhar Card 
  • Voter ID and 
  • Driving License

Proof of Address (Anyone):

  • Utility Bill for Passport (telephone, electricity, water, gas) - less than 2 months old
  • Aadhaar Card
  • Driver's License and 
  • Ration Card

Proof of Income:

  • Salary statements (Last 3 months)
  • Bank statements from the previous three to six months (showing salary credit)

Tax Paid (Any)

  • IT returns for 2 years
  • Form 16

Proof of Residence Ownership (Any):

  • Property documentation
  • Electricity bill Maintenance bill

Job Continuity Proof (Anyone):

  • Certificate of current employment
  • Letter of current job appointment (if more than 2 years have been spent in the same organization)
  • Experience certificate (a letter of resignation or appointment from a previous employer, as well as a job certificate)
  • Investment Proof (if any) - Fixed assets, such as fixed deposits and stocks.
  • Existing Debt (if any) - Payment Track Record & Photograph of Sanction Letter - Coloured passport-size photographs

Documentation Required for Self-employed Applicants

Self employed personal loan applicants must typically submit the following documents, in addition to a fully completed loan application form and passport-sized photographs:

Photo Identification Proof (Anyone)

  • PAN Card 
  • Passport
  • Aadhaar Card
  •  Voter ID 
  • Driving License

Address Verification (Anyone)

  • Aadhaar Card Passport
  • Utility Bill (telephone, water, electricity, and gas) - less than 2 months old
  • The Ration Card

Evidence of Residence Ownership (Anyone)

  • Property documentation
  • Electricity bill
  •  Maintenance bill

Proof of Office Location and Ownership (Anyone)

  • Property documents 
  • Maintenance bill
  • The electric bill

Evidence of Business Existence (Anyone)

  • Company registration license 
  • Shop establishment proof 
  • Copy of GST registration

Income Documentation

Last two years Income tax returns of the applicant, including income computation, duly attested by a Chartered Accountant Audited balance sheet and profit and loss accounts, including the tax audit report, if applicable Savings/current account bank statement/bank passbook for the previous one year

Documents Required for Non-Resident Indian Applicants

When applying for a personal loan, NRIs are typically required to submit the following documents:

  • Identity Verification
  • A passport photocopy
  • A visa photocopy
  • Appointment Proof Letter of Employment
  • Labour contract/Identity card (if applicable)
  • Official email address or HR email address

Income Documentation

  • Bank statements for the previous six months
  • Salary slips from the previous six months or a salary certificate

Documentation Required for Pensioners

When applying for a personal loan, a pensioner must typically submit the following documents:

Proof of Identity/Age (Anyone)

  • Ration book
  • PAN card for passport
  • The Aadhar card
  • Voter identification card
  • Driver's license
  • Certificate of Birth
  • A high school diploma

Address Verification (Anyone)

  • Aadhaar card and passport
  • Ration card Utility bills
  • Driver's license

Income Documentation (Anyone)

  • Bank statements/salary slips from the previous six months
  • Form 16 of the bank passbook Copy of the pension payment order Income tax returns

Conclusion

The documents required may differ slightly between lenders, but the majority are the same. Applicants may be asked to submit additional documents as needed depending on the lender's requirements and loan type. However, keep the original documents on hand in case the lender needs to cross-check the copies with the originals when applying.