Checklist for Your First Personal Loan

At a time when you are supposed to meet one or more financial obligations but don’t have the means to do so, the best way out is to opt for a Personal Loan. Right from getting the much-coveted gift for your special someone, to taking your family on a well-deserved vacation, a Personal Loan can help you meet all your goals and more. This type of loan is highly sought after because it is unsecured, implying that you can apply for it without offering any asset as collateral. Moreover, it gives you the freedom of using the disbursed loan amount as per your wish, unlike the case with car loans or Home Loans.

Most banks and lenders offer Personal Loans to salaried individuals, business owners, self-employed professionals as well as non-professionals, who fulfil the following eligibility criteria:

  • Age – 21 years – 65 years
  • Employment Status – Minimum 2 years of consistent employment, with at least one year with the current employer or business.
  • Income – A minimum salary or income of Rs. 25,000 per month

In case you meet the above requirements, more often than not you will be eligible for a credit of up to Rs. 50 Lakhs. However, given that a Personal Loan is unsecured, you will be required to furnish some documents to your lender to prove your ability to repay the loan amount, complete with the interest at regular intervals in the form of equated monthly instalments (EMIs).

If this is the first time you are Applying for Personal Loan, it will be best for you to be prepared with the following documents:

  1. Proof of Identity

You will be required to furnish at least one of the following government-issued photo identity proofs:

  • Passport
  • PAN Card
  • Voters ID Card
  • Driving License
  1. Proof of Residence

You must provide any one of the below-mentioned documents, as a proof of your residential address:

  • Passport
  • Ration Card
  • Utility Bill
  1. Proof of Ownership of Residence

To prove that you are the owner/part-owner of the house you stay in; you should enclose one of the following documents with your application:

  • Property Documents
  • Maintenance Bill
  • Electricity Bill

Personal-Loans

  1. Proof of Office Address

If you are a self-employed professional or a business owner, you must provide any one of the below-mentioned documents, as a proof of your office address:

  • Property Documents (if any)
  • Maintenance Bill (if any)
  • Utility Bill
  1. Proof of Business Existence

As a way to prove the continued existence of your business, or practice, you must provide one of the following documents:

  • Copies of Saral Form for the past 3 years
  • Copy of the Shop Establishment Certificate
  • Any Tax Registration Copy
  • Company Registration License
  1. Proof of Income

If you are a salaried individual, as a proof of your income you must provide:

  • Your recent salary slip or current salary certificate
  • Banks statement for the last 3 months
  • The latest copy of Form 16

If you are a self-employed professional or a business owner as a proof of your continued income, you will be required to furnish:

  • Income Tax Returns Statement for the last 2 years, complete with Computation of Income, Profit and Loss Account, Balance Sheet and Audit Report
  • Bank Statement for both current as well as savings account for the last 1 year
  1. Other Documents

In addition, you will be required to furnish the following documents:

  • 1 passport size coloured photograph
  • In case you have any existing loans, kindly provide the sanction letter along with the payment track record with your application.
  • If you are a self-employed professional, you will be required to submit your professional degree certificate.

Now that you are aware of the documents required for your first Personal Loan Application, make sure you find a lender who readily offers you the loan at attractive interest rates and flexible repayment options. This simple exercise will help you enjoy enhanced financial freedom while helping you meet your goals efficiently.

  1. Also Read: 10 Tips for a Successful Personal Loan Application

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 70+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.

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