What financial documents should I prepare before applying?

Before applying for a personal loan in India, it is essential to organise all necessary financial documents. Lenders typically require a standard set of documents, although the specifics may vary a little depending on your employment status—whether you are salaried, self-employed, or a pensioner.

Here is a comprehensive checklist of financial documents you should prepare:

1. Proof of Identity (any one):
   • PAN card
   • Aadhaar card
   • Passport
   • Voter ID card
   • Driving licence
2. Proof of Address (any one):
   • Aadhaar card
   • Passport
   • Voter ID card
   • Driving licence
   • Utility bill (electricity, water, gas—usually not older than three months)
   • Rent agreement
   • Ration card
3. Proof of Income:
   • For salaried individuals: Latest salary slips (typically last three months), Form 16, and bank statements showing salary credits for the past three to six months
   • For self-employed: Income Tax Returns (last two or three years), audited financial statements (profit & loss account, balance sheet), and bank statements (last six to twelve months)
4. Employment or Business Proof:
   • For salaried: Appointment letter, employee ID card, or employment certificate from the current employer
   • For self-employed: Business registration certificate, GST filings, partnership deed or proof of office address
5. Recent Passport-Size Photograph:
   • Typically one or two colour photographs
6. Loan Application Form:
   • Duly filled and signed as per the lender’s requirements
7. Additional Tips:
   • Keep both originals and photocopies (or scanned copies for online applications) ready.
   • Lenders may request further documents such as proof of investments, property documents, or details of existing loans if needed.
   • Ensure all documents are current as well as legible to avoid delays.

Having this documentation organised in advance will help you complete your application efficiently and improve your chances of faster approval and disbursal of your personal loan.