What is the Documentation and Application Process of a Personal Loan?

One of the major advantages of personal loans is accessibility during financial requirements. The online instant personal loan application process is hassle-free with minimal document requirements and no collateral needs. You can avail of competitive interest rates based on your creditworthiness. Together with flexible loan tenure and the option to pay part payments up to 40%, repayments can become easier without causing financial strain.

Before choosing a personal loan scheme, be sure to compare interest rates among different lenders. You can limit your total interest outgo by choosing a bank that offers reducing interest rates. While different institutions might have a specific application process, here we will look into the general guidelines.

Documents Required for Online Personal Loans

You need to submit the following documents when you apply for online personal loans. In case your lender supports the digital KYC process, you don’t even have to submit physical documents.

For KYC Needs:

  • Copy of PAN Card
  • Form 60

For ID and Address Proof: Any one of the following documents needs to be submitted with self-attestation.

  • Aadhar Card
  • Valid Passport (Page showing the photo, expiry date, and signature)
  • Voter ID issued by Election Commission of India
  • Driving license issued by regional transport authority
  • Job card issued by NREGA, duly signed by a state govt. officer
  • National Population Register (NPR) showing your name and address

Other Options for Address Proof: You can submit one of these documents within 3 months of getting the loan amount if you don’t have the abovementioned documents for proof of address:

  • Utility Bills
  • Income Proof
  • Pension or Family Pension Payment Orders (PPOs)
  • Receipt of property or municipal tax

Income Proof:

  • For salaried individuals – Last 3 months’ bank statement which shows 3 salary credits
  • For self-employed individuals – Current account statement of the main transaction bank account. The statement needs to show a minimum average daily balance of ₹5000, and at least 3 transactions monthly.

How to Make an Instant Online Personal Loan Application?

To apply for an online personal loan, simply click on the application link provided by the bank. Fill in the details like:

  • PAN number
  • Personal details including address proof
  • Loan amount
  • Other loan details

In a digital KYC process, you can simply upload all necessary documents like a PAN copy, Aadhaar card, Voter ID, and Driving license online. This ensures quick and fast loan processing. In case you would like to visit the branch and apply for a loan, you can submit all documents along with the application form for an instant personal loan physically.

The lender will check your eligibility and approve the loan if you meet all criteria. There is no need for a co-signer or guarantor too. The amount will be credited to your account soon after that, using eSign/eStamp process.

To get the best interest rates in personal loans, improve your credit score. Before applying for a loan, be sure to consider all fees as well. Use a personal loan EMI calculator to check the monthly EMI payments. Choose a loan structure that doesn’t lead to a financial burden.