Personal Loan: 6 key documents required if you want to apply for loan online | Mint

Raising a personal loan is quite simple and convenient. There are a number of options which include banks, non-banking financial corporations (NBFC) and digital fintech platforms, among others.

Although most banks still provide the option of raising a loan offline, the most feasible and sought-after option is to raise the loan online.

The process of applying for a loan online is quite simple. You have to fill a form, enter your personal details, following which you will be sent an OTP on your phone that you need to enter for the purpose of authentication. Once all these details are submitted, you will be asked to submit other essential documents.

These documents include salary slips for the past three months, PAN, Aadhaar, employment proof, guarantor’s contact number and other details.

It is vital to note that the process typically goes through only after you complete the Aadhaar-based authentication which is done through an OTP sent on your mobile number.

For this, the applicant must have completed his Aadhaar eKYC and linked a mobile number through Aadhaar.

Key documents required for a personal loan:

1. Salary slips: The bank or other lender would ask you to submit the salary slips of the past three months to gauge your ability to repay the loan. The lender would typically assess your liquidity based on your cash in hand.

Since there is a significant difference between the gross salary and the cash one gets in hand – the salary slip indicates the money one gets in hand.

2. PAN: One must submit Permanent Account Number (PAN) which is a key document for every income tax-related transaction.

3. Aadhaar: This 12-digit twelve-digit unique identity number works as an address and identity proof document.

4. Employment proof: The applicant must also submit proof of employment such as ID card and appointment letter.

5. Latest Appraisal letter: When the latest salary is higher than what is shown in the appointment letter, the lender may even ask for the latest appraisal letter so that the salary reflected in the appointment letter can be reconciled with that on the salary slips.

6. Guarantor: Although personal loan is an unsecured loan that does not require any collateral or guarantee, the lender may still ask for a guarantor’s name and contact details who may be contacted in case the loan applicant turns incommunicado.

Sometimes, the lender may even ask to show past six months’ salary slips. Besides, there could be other documents which the lender could ask for which could vary from case to case.