In the past, applying for a Personal Loan may have been considered a tedious process, primarily due to the long, and seemingly unending documentation process. However, technological advancements coupled with online tools have enabled lending institutions to revamp their conventional documentation processes, and pave the path for instant, paperless documentation. Today, you can apply for all kinds of loans, including Personal Loans, without ever stepping foot in the bank.
Read on to understand how to ease the process of documentation for Personal Loans, the required documents, and some helpful documentation-specific tips.
Documentation For Personal Loans
Personal Loans are collateral-free, unsecured loans, which lenders approve with minimal, often paperless documentation. Lenders typically evaluate your credit score and monthly income before approving the loan. They can request credit information companies for access to your credit report. Additionally, you can provide your monthly income proof documents in the form of salary slips and bank statements. Also, you are not required to produce documents for any collateral.
List of documents needed for a Personal Loan application
To prepare for documentation for Personal Loans, you must scan copies of the following documents on your computer to attach them with your online loan application.
Photo Identity Proof Documents
You can provide any of the following Government-issued documents as your photo identity proof.
- Permanent Account Number (PAN)
- Aadhaar
- Passport
- Driving License
- Voters’ ID
Address Proof Documents
You can provide any of the following as your address proof documents.
- Aadhaar Card
- Passport
- Driving License
- Voter ID
- Latest Utility Bills (Electricity/Telephone/Water/Gas)
Income Proof Documents
The income proof documents you provide depends on whether you are a salaried or self-employed applicant.
For salaried individuals
- Salary slips for the last two months
- Salary certificate with the latest Form 16
If your monthly gross salary does not meet the minimum criteria, the lender may request other monthly income sources like variable pay, annual bonus, income from investments, etc.
For self-employed individuals
- Bank statements
- Income Tax Return for the last two years
- Lease agreement for your business
Personal Loan Documentation Tips to Keep in Mind
Today, most lenders provide an entirely online Personal Loan application process. So, here are some things you could do before submitting your Personal Loan application.
Ensure your name is the same on all documents
If you have been putting off any name-changing tasks, make sure you complete those before sending your loan application. Spelling errors in your name must be rectified at the earliest.
Link your mobile number to your Aadhaar
Since Personal Loan applications are processed online, you must ensure that your mobile number is linked to your Aadhaar Card. If not, you can complete the linking process at your nearest Aadhaar Enrolment Centre.
Link your Aadhaar to your PAN
Section 139AA of the Income Tax Act, 1961 states that individuals must link their PAN and Aadhaar. Doing so allows the Income Tax department to track all financial data and eliminate PAN duplication. Also, the IT department levies a hefty fine if you fail to link your Aadhaar to your PAN. Your PAN may become inoperable, and you would have to apply for a new one.
Make electronic copies of your documents
The loan application portal will ask you to submit your documents online. Hence, all the required documents must be in electronic format. You can download your Aadhaar and PAN from the official websites or scan your hard copies before beginning the loan application process.
Get Hassle-Free Personal Loans with HDFC Bank
HDFC Bank offers online Personal Loans with paperless documentation. You simply need to attach scanned copies of the required list of documents as part of your application process. With HDFC Bank Personal Loans, you can enjoy benefits like speedy disbursal, flexible repayment tenures, affordable EMIs starting from ₹2,149/lakh and many more. Some pre-approved Personal Loan applicants can receive instant disbursals within 10 seconds without any documentation as well.
If you are ready to get your Personal Loan, click here to get started!
Did you know that your Personal Loan application can be rejected for not meeting documentation criteria? Click here to read more about this!
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Personal Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.