A personal loan is a financial product that a borrower can request from a lender to satisfy immediate or emergency cash needs. A personal loan comes along with an interest rate that a borrower requires to repay through EMIs on monthly basis within a fixed tenure period. However, to obtain a personal loan for whatever reason it is, there are some mandatory personal loan documents required to submit along with the application form.
Gone are those days when an applicant was required to visit an offline branch to apply for a loan. And kit was a time-consuming process as well. Now that all the products are available online, you can appeal as well as avail of the loans online just with a single click. Moreover, personal loan application online involves paperless documents with an instant response on various websites.
However, assembling a bunch of necessary documents to apply for the loan is somehow tedious. But, applying for a loan online is the easiest process that feeds your instant loan requirement as well. Besides, there are some customary KYC Documents requires for real-time verification, be it online or offline.
Personal Loan Interest Rates – Explanation:
Before we explain the required documents for personal loans, let us capture what a personal loan interest rate is. Interest rates on personal loans definitely vary from loan product to product. The highest to lowest interest rates for a personal loan should correspond online on credit websites before applying for the personal loan. However, a minimal rate value of processing fee is associated with the loan procedures besides the interest rates. Besides, to obtain an affordable interest rate, your credit history will also be valuable. You can eventually improve your credit score over a time of time with well-organized management and planning of credit accounts.
What about the eligibility criteria regarding personal loans?
Before you submit the personal loan documents required for the loan, you have to understand the eligibility criteria for the loan. It acts a notable part in the processing of the credit swiftly. If the personal loan eligibility does not match the eligibility standards or the lender observes any inadequacy of any required documents, your personal loan application may face rejection or delay. In India, banks and financial institutions make the eligibility criteria for personal loans mandatory for some simple reasons.
A number of lenders are ready to provide the personal loan value of the requested amount against gold jewellery. In case a housewife is unable to get a guarantor or co-applicant, she can always go for a gold loan option.
Documents required for personal loans:
Papers for a candidate may vary depending on different personal loan varieties. For instance, the loan for medical emergencies or educational purposes may require a number of additional documents, a medical certificate, bills, or a university admission letter.
- KYC Documents – Voter card/ Pan card/ Aadhar card/ Passport, etc.
- Residential proof – Utility bills/ Electricity bill, etc.
- Bank account statements.
- Current employment proof, Salary pay slips, offer letter, etc., for salaried person
- Photograph 1-copy.
- For self-employed people, business details like company ITR, work experience, and job stability.
When you submit these documents, make sure you match the age eligibility that is between 21-58 years for both self employed and salaried individuals. Besides, the applicants must earn a mini wage of Rs.15,000. Once the lender approves the documents submitted by you, they will certainly disburse the loan instantly to your bank account.
Must Read: Consequences on Defaulting a Home Loan
To obtain the said loan value, one must secure some assets as collateral to assure loan repayment. Anything like gold jewellery, house, property, vehicle, agreements can count as collateral to easily avail of the personal loan to commence the business. Besides, it’s imperative to check eligibility criteria before applying for a unsecured personal loans.
To obtain the personal loan, submitting the income proof is mandatory as. This will help the lender verify your capability to repay the loan. It will also give you an idea about your monthly EMIs.
Ending words:
The traditional process of presenting the personal loan documents required with the application form needs a considerable measure of patience. Time and effort to assemble the original and xerox copies of confidential papers. Besides, the security of personal documents stays at a stake as there can be a chance of losing original files in transit. Therefore, submitting these documents online is an ideal and safe option and help the lender verify them evenly.
