What are the documents needed to apply for a Personal Loan?

You might be in an excellent financial situation, but there could be times when you need monetary help. It could be for a medical emergency or to meet your daily expenses. Personal loans are helpful in such times as you can use them for anything. With minimal procedures and no collateral, your needs could be met quickly by availing a personal loan. Here is the list of documents you need to get a personal loan.

PAN card: PAN card is a necessary document for applying for a loan or a credit card. Lenders may also use your PAN card information to access your credit score. It can give insight into your credit health and repayment history. A good credit score is necessary to secure personal loans at reasonable interest rates.

Proof of identity: You must submit identity proof with your photo and name. It can be your Aadhaar card, driving license, passport, voters ID etc.

Proof of address : You will also have to show proof of your current address. Documents with your current address, including your Aadhaar card, driving license, passport, voters ID etc., can be used. If your identity proof carries your current address, you might not need to submit two separate proofs.

Salary slips: A salary slip is proof of your income. Your salary slip can validate your employer, your monthly income, etc. Lenders will consider your income and see if it is enough for you to repay your loan comfortably before approving your loan request.

Bank statements: Bank statements are also used to validate your income. Both self-employed and salaried individuals must provide bank statements to avail personal loans.

IT statements: Lenders may also ask for your income tax statements while assessing your application. It is also used to check your income and see if you will be able to repay the loan with your income.

How to calculate your EMI amount?

Lenders analyse your income to gauge whether you can repay your loan amount. But doing this yourself can help ensure your eligibility. You can use an online personal loan calculator. You can calculate your monthly EMIs by entering the total loan amount and the lender’s interest rate using this.

How to apply for a personal loan?

Lenders have made the application process for personal loans straightforward. You can submit your personal loan application from the comfort of your home. All you need to do is provide your information and prepare your documents. Once your application is processed, the personal loan amount will be credited to your account within hours.

There are plenty of options to choose from when you are in the market for a personal loan. It is wise to compare your options and choose something that will work for you.