Your Ultimate Guide to Personal Loan Documents

Are you someone living in metro cities like Mumbai, looking for a Personal Loan? In case of urgency, a Personal Loan is like a financial lifeline. These unsecured loans can help you handle any financial emergency. Whether paying for a medical emergency, your child’s higher education or an urgent home repair in Mumbai, a Personal Loan can help you manage everything without end-use restrictions. The best part is you can apply online and get the necessary funds instantly. 

But before jumping in to apply, it’s essential to check the lender’s requirements and arrange all the necessary documents for a Personal Loan application.

In this blog, we’ll give you an overview of the essential documents required to get approval for a loan. In Mumbai, several financial institutions and NBFCs provide Personal Loans, but all mandate similar documents. 

What are Personal Loans?

Personal Loans are unsecured credit options where borrowers can avail a specific sum of money to meet their financial goals, lifestyle requirements, or emergencies. These Personal Loans are usually available with a tenure of up to 60 months and a competitive interest rate lower than credit cards.

Now, let’s understand the essential documents you must check off your list to get your loan application approved in Mumbai.

Checklist for Personal Loan Documents

1. Identity Proof 

A self-attested copy of your identity proof is essential while applying for a Personal Loan in Mumbai. You can provide any of the below-mentioned identity proofs:

– Passport

– PAN Card

– Voter’s ID

– Aadhaar Card

– Driving License

Ensure that your identity proofs are valid, readable, and match the details per KYC norms.

2. Address Proof

Proof of residence is also an essential document for Personal Loan. You can submit any one of the below-mentioned Address Proofs:

– Passport

– Voter’s ID

– Ration Card

– Driving Licence

– Electricity/Telephone/Water Bills

– Property Tax Documents

Ensure the address proof is valid and readable, not over three months.

3. Proof of Income

The Personal Loan approval process considers the borrower’s income an essential factor. Income proof clarifies if an individual has enough earnings to pay the interest and the principal loan amount. You can submit any one of the below-mentioned proof of income:

– Last six months’ salary slips or bank statements (for salaried individuals)

– Last two years ITR (for freelancers or self-employed individuals)

– Profit/Loss statements or CA audited reports (for self-employed individuals)

Ensure these income-proof documents reflect stable income or salary, which can convince the lender that you can service the loan.

4. Proof of Employment

If you are salaried, you must submit valid proof of employment for approval for a Personal Loan in Mumbai. Proofs of employment that can be submitted are:

– Employee ID Card

– Joining Letter

– Relieving Letter from the previous employer (if you changed jobs recently)

Ensure your employment proof document states your current employment details, like the employer’s name, address, and phone number, and has a recent date.

5. Other Important Documents

Additional documents required for processing your loan in Mumbai are:

– Recent Passport Size Photograph

– Application form for a Personal Loan 

Conclusion

A Personal Loan is a convenient way to finance your immediate financial needs. But, before availing of these loans, you must prepare all the necessary documents to avoid rejection. Remember, every lender has specific requirements, and it is essential to have all valid, readable documents and to verify the correct type of documents from the lender beforehand.