The importance of personal loans is often overlooked because they don’t require much paperwork. However, it’s essential to consider how a personal loan works and what you can do to make sure it goes smoothly for both you and your lender.
Personal loans are available from banks, Non banking financial corporations, credit unions, and other financial institutions. They are designed to help borrowers get out of the financial difficulty by enabling them to borrow money on short notice. The requirements for getting a personal loan include having a job and being able to pay back the borrowed amount with interest over time.
There are no formal requirements for getting a personal loan. You only need valid personal loan documents that prove your identity and your credibility as a borrower. For example, if you’re applying online, your bank statement or pay stubs might suffice as proof of income.
Required personal loan documents for salaried individuals
At Hero FinCorp’s personal loan facility, both salaried and self-employed persons require different documents to apply for the loan. Here are all the documents that a salaried individual needs to present.
Essential documents
Salaried employees need to first duly fill out the loan application form. This can be done by attending an official bank branch and providing details about their employment status and salary, i.e., monthly salary, gross annual income, etc. Once they have done this, they should attach their (borrower) passport-size photo.
Identity proof documents (anyone)
Salaried employees should be aware that they will need to submit any one of the following documents to verify their identity and apply for a personal loan.
- -Driver’s license
- -Aadhar card or PAN card
- -Passport
Residence proof (anyone)
Salaried employees need to submit the following documents in order to show the loan officers that they live in a house or apartment. This will make the lender agency find the borrower if he defaults on his loan.
There are three essential documents that salaried employees should submit:
- Passport
- Aadhaar Card
- Water Bill
Residence ownership proof (anyone)
Salaried employees need to submit the following documents in order to show the loan officers that they have a house or apartment in their name. This will make the lender agency take over the house if the borrower defaults on his loan.
There are three essential documents that salaried employees should submit:
- Electricity Bills
- Maintenance Bills
- Property Documents
Salary proof
Salaried employees need to submit the following personal loan documents in order to show the loan officers that they have a stable source of income that backs up their loan proposal. This will make the lender agency consider the maximum amount of loan sanctionable for such a person.
There are three essential documents that salaried employees should submit:
- Last six months’ salary slips
- Last six months’ bank account statement (salary account)
- Filled up form 16.
Job proof
Salaried employees need to submit the following documents in order to show the loan officers that they are continuing their job and have not quit or got fired. This will make the lender agency verify and draw up a small conclusion about the person’s future financial power.
There are two essential documents that salaried employees should submit:
- Appointment letter from the current employer
- Experience certificate from the previous employer
Required personal loan documents for self-employed individuals
Just like salaried individuals, self-employed persons can also have ups and downs in their business market, right? That’s why hero fin corp provides personal loans to them and requires a few different documents. Let’s take a look at all the documents required for self-employed persons to apply for a personal loan.
Essential documents
Self-employed individuals need to first duly fill out the loan application form. This can be done by attending an official bank branch and providing details about their employment status and salary, i.e., monthly salary, gross annual income, etc. Once they have done this, they should attach their (borrower) passport-size photo.
Identity proof documents (anyone)
Self-employed individuals should be aware that they will need to submit the following personal loan documents in order to verify their identity and apply for a personal loan.
- -Driver’s license
- -Aadhar card or PAN card
- -Passport
Residence proof (anyone)
Self-employed individuals need to submit the following documents in order to show the loan officers that they live in a house or apartment. This will make the lender agency find the borrower if he defaults on his loan.
There are three essential documents that salaried employees should submit:
- Passport
- Aadhaar Card
- Water Bill
Proof of office address (anyone)
Self-employed individuals need to submit the following documents in order to assure the loan officers of their office address. This will make the lender agency find the borrower if he defaults on his loan and is not found at his home address.
There are four essential documents that salaried employees should submit:
- Maintenance Bill
- Utility Bill
- Property Documents
- Rent Agreement
Business proof (anyone)
Self-employed individuals need to submit the following documents in order to show the loan officers that they actually conduct business. This will make the lender agency find out more about his business trends and financial position which will help them decide if he’s a high-risk or low-risk borrower.
There are three essential documents that salaried employees should submit:
- Copy of Tax Registration
- Shop Establishment Proof
- Company’s Registration Certificate
Income proof
Self-employed individuals need to submit the following documents in order to show the loan officers that they can pay back the loan with their future income. This will make the lender agency find out more about his business trends and financial position which will help them decide if he’s a high-risk or low-risk borrower.
There are two essential documents that salaried employees should submit:
- Last six months’ bank statement
- ITR for the last two consecutive years
Conclusion
Personal loan documents are important for the loan agency. In most cases, these documents are used to determine whether an applicant is eligible for a loan, and they also contain information about the applicant’s credit history and financial situation. These documents will be reviewed by the loan officer to make sure that the applicant meets their requirements for approval.
