What are the Key Documents that you require for a Personal Loan
5 min read | 2 months ago
Are you thinking about applying for a personal loan? If so, are you wondering just what documents you need to bring in order to ensure a smooth loan application process? Don't worry - we've got you covered.
In this blog post, we'll walk you through all the key documents that you need to have ready if you're looking to apply for personal loans. By the end of this post, you'll be able to approach your lender confidently with all the necessary paperwork.
Before we dive into the details, let's briefly discuss what a personal loan is. A personal loan is an unsecured form of loan that can be taken for a number of different uses, such as paying off debt, funding a wedding, or renovating your home. Plus, you don't need to put down collateral like house or car loans require.
What Documents Will You Require to Apply for a Personal Loan?
Now, let's get to the heart of the matter - what documents do you need to get a personal loan instant approval? Here's a list of the key documents that you should prepare:
Proof of identity - - You'll need to provide a government-issued ID, such as a passport or driver's license, to verify your identity.
Proof of income - Lenders want to know that you have the ability to repay the loan, so you'll need to provide proof of income, such as recent pay slips or tax returns.
Employment verification - You may also need to provide proof of employment, such as a letter from your employer or recent bank statements.
Credit history - Lenders will check your credit history to assess your creditworthiness, so it's a good idea to obtain a copy of your credit report before applying for a loan.
Bank statements - You may need to provide recent bank statements to demonstrate your financial stability and ability to manage your finances. Banks like Unity Small Finance Bank require 6 months' bank statements for applying.
Other loan information - If you have other loans or debts, you may need to provide information about those as well.
Purpose of the loan - Finally, you'll need to provide information about the purpose of the loan, such as the amount you need to borrow and what you plan to use the funds for.
Conclusion
In conclusion, applying for a personal loan can be a great way to achieve your financial goals, whether you're looking to consolidate debt, pay for a big expense, or make a major purchase. To ensure a smooth loan application process, make sure you have all the necessary documents on hand, including proof of identity, proof of income, employment verification, credit history, bank statements, other loan information, and information about the purpose of the loan.
We hope that this blog has been helpful in guiding you through the personal loan application process. Remember, if you have any questions or concerns, don't hesitate to reach out to your lender for assistance.
FAQs
1. What kind of identification documents are required for a personal loan application?
You will need to provide a copy of your government-issued identity proof, such as a passport, driver's license or voter ID card.
2. What financial documents do I need to submit while applying for a personal loan?
You will need to provide your salary slips for the last few months, bank statements, income tax returns, and other documents related to your income.
3. Do I need to provide any collateral to get a personal loan?
No, personal loans are unsecured loans and, hence, do not require any collateral or security. However, lenders may ask for a guarantor in some cases.
4. How long does it take to process the personal loan application after submitting all the required documents?
The processing time varies with different lenders and can take anywhere between 24 hours and a few days, subject to the verification of all the submitted documents.
About Unity Small Finance Bank
Unity Small Finance Bank is committed to making banking simpler and more accessible for everyone. Our services include Savings Account, NRI account, Current Account, Fixed Deposits, and Personal Loans offering flexible tenures and attractive interest rates. We also offer financing options like MSME Loans and Microfinance to support businesses and underserved communities. Learn more about Unity Small Finance Bank here.
