Documents Needed for Personal Loan Application

As you apply for a personal loan, it is important to ensure that you meet all the necessary eligibility requirements in order to avoid any rejections later. One of the major requirements for a personal loan application is the borrower’s income and his/her employment status. This means that whether a borrower is self-employed or salaried plays an important role in deciding whether he/she would get approved for the personal loan or not.

To confirm your eligibility, you can check out the personal loan eligibility calculator. Once you have completed that step, you must keep a check on whether or not all your required documents are in place. To help you do that, we have curated a list of all the documents needed for a personal loan, for both salaried and self-employed borrowers.

It is important to note that since employment status and borrower’s income play such a vital role in the process of personal loan approval, the documents required also vary for salaried, self-employed, and NRI borrowers or Pensioners.

Personal Loan- Documents Required for Salaried Employees

Salaried employees have a fixed monthly income, owing to which, it becomes easier to get approved for a personal loan. Here are some of the documents required for salaried employees while applying for a personal loan

  • Photo Identity Proof (any one of the following)
    • Passport
    • PAN Card
    • Voter’s ID Card
    • Aadhaar Card
    • Driver’s License
  • Residential Proof (any one of the following)
    • Passport
    • Utility bill (less than 2 months old)
    • Aadhaar Card
    • Driver’s License
    • Ration Card
  • Income Proof
    • Salary slips (last 3 months)
    • Bank statements, as a proof of salary credit (last 3 months)
  • Tax deduction
    • IT returns ( 2 years)
    • Form 16
  • Proof of Ownership of the Residence
    • Property documents
    • Maintenance bill
    • Electricity bill
  • Proof of Job continuity
    • Current employment certificate
    • Current appointment letter (if your work experience in the same organisation is more than 2 years)
    • Experience letter/Relieving letter (from the previous employer)
  • Investment proof (if any)
  • Existing loans (if any)
  • Passport size photograph (colored)
Read More: Types of Personal Loans - Avail of them for a multitude of uses

Personal Loan- Documents Required for Self-employed Individuals

If you are a self-employed individual applying for a personal loan, then you must have a fixed monthly income of more than INR 25000 and/or annual income of INR 5 lakh. After ensuring that you meet this and all the other eligibility conditions, you are required to present the following documents-

  • Photo Identity Proof (any one of the following)
    • Passport
    • PAN Card
    • Voter’s ID Card
    • Aadhaar Card
    • Driver’s License
  • Residential Proof (any one of the following)
    • Passport
    • Utility bill (less than 2 months old)
    • Aadhaar Card
    • Driver’s License
    • Ration Card
  • Proof of Ownership of the Residence
    • Property documents
    • Maintenance bill
    • Electricity bill
  • Proof of Ownership of the Office
    • Property documents
    • Maintenance bill
    • Electricity bill
  • Proof of the existence of Business
    • Copy of GST registration
    • Property documents
    • Electricity bill
  • Income Proof
    • Income Tax Returns, along with computation of the income attested by a Chartered Accountant (last 2 years)
    • Audited Balance Sheets and Profit & Loss Accounts, along with tax audit reports
  • Bank Statement
    • Bank account statement/Passbook (last 1 year)
  • Investment Proof (if any)
  • Existing Loans (if any)
  • Professional Degree Certificate (if applicable)
  • Passport size photograph (colored)

Personal Loan- Documents Required for NRIs

If you are a Non-Residential Indian (NRI) applying for a personal loan from India, then you must furnish the following documents-

  • Identity Proof
    • Copy of the Passport
    • Copy of the Visa
  • Employment Proof
    • Appointment Letter
    • Job Contract
    • Labour/Identity Card (if applicable)
    • Official email id
  • Income Proof
    • Bank statements (last 6 months)
    • Salary slips (last 6 months)
  • Passport size photograph (colored)

Personal Loan- Documents Required for Pensioners

Individuals above the age of 68 years are not eligible for a personal loan. However, if you are retired and are eligible for a personal loan, then you would be asked to present the following documents in the process of personal loan application-

  • Identity Proof
    • Ration Card
    • PAN Card
    • Aadhaar Card
    • Voter’s ID Card
    • Passport
    • Birth certificate
    • Driver’s License
    • School Leaving Certificate
  • Residential Proof
    • Passport
    • Utility bill (less than 2 months old)
    • Aadhaar Card
    • Driver’s License
    • Ration Card
  • Income Proof
    • Salary slips (last 6 months)
    • Bank’s Passbook
    • Form 16
    • Pension Payment Order (copy)
    • Income Tax Returns
  • Passport size photograph (colored)

It is important to note that while the above-mentioned list of documents is complete, the lenders may or may not ask for any of these documents. Each lender/financial institution has its own terms and conditions for lending the money, which might also vary from borrower to borrower.

FAQs
Is it important to submit all the documents required while applying for a personal loan?
Yes, it is important to submit all the documents while applying for a personal loan. However, if you can’t present any specific document, then you may contact your lender and ask for an alternative for the same.
What are the key personal loan documents required?
The key personal loan documents required include an identity proof, income proof, address proof, and a proof of your employment.
What are the documents required for personal loan for self employed?
Following are the documents required for personal loan for self employed-
  • hoto Identity Proof (any one of Passport, PAN Card, Voter’s ID Card, Aadhaar Card, Driver’s License)
  • Residential Proof (any one of Passport, Utility bill, Aadhaar Card, Driver’s License, Ration Card)
  • Proof of Ownership of the Residence (Property documents, Maintenance bill, Electricity bill)
  • Proof of Ownership of the Office (Property documents, Maintenance bill, Electricity bill)
  • Proof of the existence of Business (Copy of GST registration, Property documents, Electricity bill)
  • Income Proof (Income Tax Returns, along with computation of the income attested by a Chartered Accountant (last 2 years), Audited Balance Sheets and Profit & Loss Accounts, along with tax audit reports)
  • Bank account statement/Passbook (last 1 year)
  • Investment Proof (if any)
  • Existing Loans (if any)
  • Professional Degree Certificate (if applicable)
  • Passport size photograph (colored)
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