Personal Loan Documents Required for Salaried and Self-Employed

Acquiring a loan is a process of borrowing money from a financial institution at a certain rate of interest levied on that amount, which is repayable over a stipulated time period. Personal loans are unsecured loans, that are made available to fulfil a variety of personal needs that an individual may face. Since personal loans do not require any collaterals and provide the perfect fix for financial requirements, they have become quite popular over the last few years.

With every financial institution offering personal loans, and with modern technology used to reduce the stress involved in this process, it has become easier than ever to apply for personal loan today. Be it a salaried employee of a company, or someone who is their own boss, the attraction of a personal loan is hard to resist. However, while the benefits of a personal loan remain largely the same for different income groups, their eligibility may differ to quite an extent.

After ascertaining your credit score, knowing your eligibility for a personal loan, and eventually choosing the institution and plan that suit you, you must organize your paperwork in accordance with the requirements of that institution.

A personal loan application requires you to establish your credibility, and assure the institution of the availability of resources at your disposal to repay the loan amount. While most of the documents that are required remain the same, some requirements may vary according to the nature of a person’s profession/occupation.

The basic documents to be provided by an individual include:

  • Identity Proof (passport, driving license, Aadhar card {UID}, voter ID)

  • Address Proof – While any form of ID proof would suffice, some financial institutions only consider permanent address, which is at least a year old. They may also insist on electricity, water, or telephone bills

  • Date of Birth Proof

Other than these documents, you are required to submit paperwork based on whether you are a salaried employee or a self-employed individual.

A salaried employee must provide the following documents:

  • Proof of Education

  • Bank Statements (as per the specifications of the concerned financial institution)

  • Form no. 16 (computed income)

  • Salary Slips (from the last 3 months)

  • Passport Sized Photographs

A self-employed person, on the other hand, must provide the following:

  • Office Address Proof

  • Proof of Business Ownership

  • Proof of Business Continuity

  • Bank Statements (from the previous 6 months)

  • Audited Financials (from the last two years, as proof of income)

It must be kept in mind that the information provided to the financial institution may be verified at any point of time before the loan is sanctioned. So, it is imperative that you provide the information about which you are sure.

 

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