Personal loan acts as a safety shield during emergency. Whether you want funds for some of your work or need money during an emergency, a personal loan can be very useful on such an occasion. In today’s time, it has become very easy to apply for personal loans with the help of digital lending platform. For this, you just need a good credit score, address proof, identity proof and income related documents.
Why only personal loan?
Personal loans can be used for any work, such as from home renovation to medical expansion, even for the needs related to small business, you can take personal loans. Personal loans are unsecured, which means that you do not need to pledge anything to take a loan. A little documentation works here.
You can apply for a personal loan of up to ₹ 50 lakh with 100% digital process through online lending apps like Moneycontrol. Moneycontrol app and website, together with its lending partner, offers multiple loans to you. You can apply for personal loans by following only three easy steps – enter the details, complete KYC and set the EMI repayment.
Essential documents
Documents required for personal lone include identity proof, address proof, income statement and employment history. These documents play an important role in verifying your personal information, checking financial stability and loan repayment. By providing proof of your income and employment, you help reduce the risk of lenders, which increases the chances of applying your application.
1) Basic KYC Document
- Photo identity proof: As a photo identity proof, you can use your PAN card, Aadhaar card, passport or driving license. These documents are used to verify your identity for loan application.
- Address proof: For this, you can give a copy of your passport, voter ID, Aadhaar card, ration card or recent utility bills.
- Passport Size Photo: Many lenders can also ask for your recent photos in the document sought for personal loans.
2) Bank statement
Bank statements are necessary to check your financial condition and ability to repay the loan. Most of the lenders demand a statement of the last three to six months.
3) Income document
Banks usually ask for a salary slip of the last three months to verify your monthly income. The stability loan of income increases the possibility of approval, because banks are confident that you will be able to repay the loan taken. Apart from this, banks can also ask you for your employee certificate.
4) Document for Self-Emploid people
Self-Emploid people do not have regular salary slip, so their income and verification of employments is slightly different. These people may need a document given below to get a personal loan:
- Income proof: Documents such as the latest income tax return, current account statement, profit and loss account and audited balance sheet help to guess the financial condition of the landers applying.
- Business proof: Documents showing business registration, such as GST registration or company encoding certificate, are used as proofs of self-employment.
- Office ownership and address proof: For this, documents like utility bill (eg electricity bill, water bill) or property ownership paper will be required. These documents are used to validate your business prelims.
How to get approved early
- Check your credit score: A good credit score loan increases the chances of sanctioning the loan to a great extent.
- Keep in mind that your documentation is not incomplete: For approval, it is necessary to have complete and acurate documentation. With this, with the less time in processing, you can get a loan of low interest rates and more amounts, that too with better loan conditions. On the other hand, due to wrong documentation, it may be too late to get a loan, or your application can also be rejected directly.
- Eligibility Criteria: Some lenders can also ask for some more information based on the type of employment or loan amount. So before applying, check the eligibility criteria from landers.
- Select the option of online personal loan: If you apply online loan through a trusted digital lending app, then the entire process is usually 100% digital and you have to submit very little documents.
conclusion
Overall, keep all the necessary documents ready before applying a personal loan. With this, you will not be stressed while applying for the loan nor will you have to run around for these documents. Providing all the necessary documents increases the chances of early loan approval, while it can also help in achieving loans on better conditions.
Moneycontrol, along with its partner lenders, helps in getting an instant loan of up to Rs 50 lakh. Interest rates here start at 10.5% annually.
With 100% digital application process of Moneycontrol, getting a loan has now become much faster and easier than ever. The platform provides features such as minimum documents, no hidden charge, quick dishabsal and flexible repayment.
Summary
Need a fund immediately? At such a time, personal loans can provide a quick and stress free solution with minimum documents. Here the list of all those documents has been given which you have to keep ready for loan approval.
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Disclaimer
This fraction/article is written by an external partner and does not reflect the work of the editorial team of Moneycontrol. This may include references to products and services offered by Moneycontrol.