Personal Loan Documentation and Application Explained

A personal loan is an unsecured loan primarily provided to salaried individuals and in some instances to professionals such as government employees, doctors, Chartered Accountants etc. The loan amount varies between Rs. 1 lakh and Rs. 20 lakhs. Usually the tenure is up to 5 years. The bank and NBFC you are applying with may attach processing fees, documentation charges, prepayment penalty, late payment penalty and other charges, thus you must check all the loan details before finalizing the offer.

This loan can be taken to pay for any needs. You can fund any financial requirement with a personal loan in India. Mostly, people utilize the funds for travel, medical emergency, wedding, big-ticket purchases, small expenses, home repair, buying of gadgets etc. Basically, there are no restrictions as to how to put the funds to use. Now that you are aware about the essentials of a personal loan, let us review its application process.

Details about Personal Loan Application

Below provided are the details of how to apply for a personal loan.

  1. Personal Loan Apply Offline: You can either apply for the personal loan online or offline. The offline process is tedious, as you have to go from one financial institution to other and check the offers, and then finalize a particular lender. After which, you have to manually fill the loan application form and submit it to the bank executive. You will also have to carry hard copy of the documents along and submit it with the duly signed form. Your application would be reviewed and you will be informed later if the loan is approved or not. If approved, you will receive the funds in your bank account.
  1. Personal Loan Apply Online: The online personal loan process is the quickest and easiest. At one platform, you can compare multiple banks and NBFCs offers and decide the best scheme for yourself, and apply with a particular institution. Since all the details such as tenure, loan amount, interest rate, other charges etc are listed out; it becomes simple to review the choices. You can even drop an application and an expert from the site you have applied on will get back to you with the best offer, according to your requirement and matching of your profile with the eligibility criteria of the financial institutions.


You get the facility of uploading all the documents online itself. No branch visits are required. You can complete personal loan application within minutes from anywhere. You will be able to track the application status on the site. If you want any clarification or queries answered, the customer care team can be contacted for help. Once the loan is approved, you will receive due notification. The funds would be transferred to your bank account.

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

The NBFCs and banks can ask for few essential documents to understand your personal loan eligibility. Below we have listed out the crucial documents required to attain personal loans in India.

  • Income tax returns and computation of income of last three years.
  • Age proof (any of the following):  Birth Certificate, Secondary school certificate (Class 10),Aadhar Card, PAN Card, Passport, Voter ID, Life Insurance Premium Receipt, Ration Card, etc.
  • Signed application form with latest 2 passport sized photographs
  • Identity Proof (any of the following): Voter ID Card, Employer issued ID Card, PAN Card,  Electricity Bill, Ration Card, Aadhar Card, Passport , utility bill, Mobile bill, Driver’s License, Title deed, Telephone Bill, municipal tax receipt, Life Insurance Premium Receipt, etc.
  • Form 16 or proof of Income Tax Returns
  • Residence proof:  Government-issued Employee Residence Proof, Telephone Bills, Electricity Bill, Ration Card, Ownership and Title Deeds of Property, etc.
  • Salary slips of last three months
  • Audited balance sheet and profit and loss account of the last three years, which is certified by a Chartered Accountant
  • Bank statement of last six months

FAQs about Personal Loan Documents

Below given are some of the important questions asked about personal loan documentation.

  1. What if I cannot produce all the documents needed?

Most often, the loan application will be rejected if you cannot submit all the documents needed. In some cases, the bank may be flexible about this requirement, but it is subjective. Credit score, income tax returns, ID proof, residence proof, income proof are the most important.

  1. What if I do not have sufficient credit score?

If you do not have sufficient credit score, then do not worry. You may still be eligible for the personal loan, but at a higher rate of interest. Your credit report will be still reviewed.

  1. Which photographs do I have to provide?

You must submit recent passport size pictures of yourself. Make sure no one else in this photograph with you. The image should be clear and clean, devoid any smudges or blurs.

  1. Can I submit a fake document?

In case you submit a fake document and the financial institution detects the fraud, then legal action can be taken against you and you could be prosecuted. The penalty can be a jail term and a hefty fine.

  1. What if I do not have salary slip?

If you do not get salary slip, you should immediately request the employer to provide you with the last 6 months salary slips. If that is not possible, a written confirmation from the employer about your employment and income may suffice, but not all the banks shall accept this document, and mostly will still demand a salary slip.

  1. Which bank account’s statement do I have to submit?

You have to submit the bank account statement of your salary account. It is in this account that your salary will be deposited, thus an essential proof of your income.

Given above are all the details about personal loan documents and application process. Consider this information when you apply for this unsecured loan.

Post Author: Kacy Tami