Before applying for a short-term personal loan or a business loan, you should know the key documents needed for the application procedure in India. Every lender has their own set of eligibility criteria and the documents list to be collected from the borrower. To avoid confusion in making an informed decision for getting a genuine and affordable loan, you should have the perfect plan and the documents ready for getting quick approval from the bank or financial institution’s side. Understanding these things will help you become an informed and aware consumer/borrower and in this way, you can easily get away from several types of financial stress.
The prerequisites for loan application are based on the type and kind of the loan. The list of needed documents varies from one lender or financial institution to the other.
Here, in this blog, you will know the key documents needed for the application process and for smooth approval.
Documents Required in Several Loan Types
Personal Loan
- In a personal loan, you will be required to submit these documents:
- Address proof like Aadhaar card, PAN Card, Ration Card, Passport
- Copy of PAN card
- Proof of Income: Recent Salary Slip, Bank Statement, Passbook record, Certificate of Salary
- Two passport size Photographs
Education Loan
A student loan is one of the most popular loan types offered to candidates who want to fulfil their educational needs and are admitted to a college or school.
In an education loan, a borrower needs to submit these necessary documents:
- Duly filled out a loan application form.
- A current academic record like an admission letter, or the letter of joining a college or university
- An affidavit or declaration certificate regarding no loan is availed in any form from any financial institution.
- Proof of age: matriculation mark sheet
- Proof of signature: passport, PAN, or Bank Passbook
- Proof of address: Adhaar card, Driving License, Bank passbook, Voter ID card
- Two passport-photograph
- In case of abroad study, a copy of foreign exchange is required
- If the student takes a big amount as collateral, he has to submit a security deposit in the form of an asset or money.
- Student loans can be only availed with some other documents of co-applicant like:
- Proof of address
- Identity proof
- Last 3 months’ salary slip or bank statement
Eligibility for Education Loan
- Students should be of Indian origin.
- Having a good academic record.
- The age should be between 18 to 35 years.
- His/her parent or guardian should have stable income sources
- The student should enroll in a recognized board or institution in the country.
- An admission letter is needed for the confirmation of the loan application
- A collateral or loan guarantor is necessary for the witness of income sources and the loan amount.
Home Loan
For availing a home loan, a borrower should need to submit these documents:
- PAN card
- Address proof: Adhaar card, Government ID card, Voter ID card
- Proof of identity like PAN, Voter ID etc
- Two passport-sized photographs
- Age proof: Adhaar card, matriculation marksheet, or DOB certificate.
- Income source proof: Salary slip or bank statement (recent), updated passbook record, salary certificate
- Self-employed income record
- Collateral or property-related documents like sale deeds, ownership papers etc.
Eligibility Criteria
Basic eligibility criteria for taking a home loan include these pointers:
- A borrower must have attained at least 21 years of age and should not exceed 65 years.
- Your monthly income should not be below rupees 25K.
- Your job should have 3 years of stability.
- CIBIL score should be at least 700+.
- The Home loan borrower should submit the collateral or security asset so that the lender can cover their losses in case of a default loan.
Vehicle Loan
These documents are necessary for getting a Vehicle loan with ease:
- Identity Proof: PAN card, Driving Licence, Voter Card, Adhaar Card.
- Address proof: permanent address record like utility bill, ration card, Passport, Voter ID card etc.
- Six-month bank statement
- Salary slip of not earlier than 3 months
- Passport size photograph
- Collateral or security deposit
Eligibility Criteria
A Vehicle loan borrower should follow these guidelines in order to avail its benefits:
- Must be a citizen of India.
- The person should be between 19 to 60 years of age.
- Good budget in the account.
- An affidavit should be submitted regarding the security of the loan to your lender.
Summary
Every loan borrower should have to submit a set of documents whether it is a short-term personal loan or a secured one. Every lender in India has a prescribed set of documents that are needed to apply for the loan amount. To know more you have to contact your lender or bank in person or online.
