Hela August 30, 2019

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Banks and non-banking financial institutions offering personal loan basically require three proofs. One is for proof of income, the other is proof of identity and the third is a proof of the borrower’s address. Lenders also need you to submit bank account statements for the past three months. You also need to fill up the application form from the bank.

For salaried, self-employed and pensioners, these four documents are important. For NRIs, the documents required are different. Apart from income proof, NRI applicants have to submit a copy of their passport, visa and Non-Resident Ordinary (NRO) and/ or Non-Resident Rupee Account (NRE). The NRI must be present in India while applying and must have a close relative in the country.

List of Documents for Salaried Individuals

For salaried individuals, the documents that are required are income proof, address proof and identity proof. This is apart from the application process which has to be duly filled and signed. Following is a list of documents that need to be attached with the application form:

Identity proof: This can be in the form of Aadhaar Card, a valid Passport, a valid Voter ID, a PAN card or a valid Driving License.

Address proof: Apart from Aadhaar, voter ID and driving licence, you can also submit a copy of your ration card, passport, rent agreement or any utility bill such as telephone or electricity bill.

Income proof: As proof of income, you have to submit a copy of your latest salary slip or a salary certificate. You will also have to submit a copy of your latest Form 16. Apart from this you have to submit your bank account statement for past three months.

List of Documents for Self Employed Individuals

For self-employed individuals, too, the basic requirement is income proof, identity proof and address proof. Additionally self-employed individuals needs to submit proprietorship declaration or partnership declaration.

Identity proof: As mentioned above, you submit a copy of your passport/ Aadhaar Card, valid Voter’s ID, driving license and Pan Card. The submission of Pan card is compulsory for any self-employed individual, company or firm applying for a personal loan.

Address proof: You can submit a copy of your Aadhaar Card, Passport, driving license, voter’s ID or go for a copy of your utility bill, rental agreement.

Income proof: Since self-employed individuals do not have salary slips, they need to submit a copy of their latest IT return. Apart from that they need to submit a computation of income, recent balance sheets along with profit and loss statement for the past two years which are certified and audited by a chartered accountant. They also need to submit a proof of continuation.

A copy of Sole Proprietorship Declaration or Certified Copy of Partnership Deed, Certified original copy of Memorandum and Articles of Association (certified by Director) and Board resolution (Original) are also compulsory.

List of Documents Required for Pensioners

If you are a pensioner applying for a personal loan, following are the documents that you must submit:

Identity proof: This can be in the form of Voter ID, Aadhaar Card, PAN Card, Passport, Driving License or a ration card that has a photo

Address proof: As discussed above, you can submit a copy of your ration card, Passport, any utility bill, voter ID, driving licence or rent agreement.

Age proof: If you have submitted the above documents, you may not have to submit an age proof separately. However, if required you can submit a copy of your birth certificate, Pan card or a school leaving certificate.

Income proof: This means a copy of details of the organisation you were employed with and the latest pension slip. You also need to submit bank account statements for the past three months.

List of Documents Required for NRI Applicants

As an NRI you, too, can apply for a personal loan. While not all banks offer personal loans to NRIs, some do. The applicant has to be an Indian resident and the co-applicant is the NRI. The two have to be close relatives and the NRI has to be in India while applying for the loan.

Following are the documents that an NRI applicant must submit:

Proof of nationality: A copy of your passport has to be submitted as a proof of your nationality.

Proof of country of residence: You need to submit a copy of your visa to prove that you are currently residing in the foreign country.

Income proof: A copy of your salary slip or salary certificate has to be submitted with the application form. Apart from that you need to share your official email ID or the email ID of your HR team.

Lastly, you need to submit your bank account statements. You must have an NRE or NRO account. Statements for the past six months have to be submitted.

I have a start-up. Can I avail a personal loan?

Yes, you can. A personal loan can be availed to fund a start-up or firm. These loans are, however, different from business loans which are custom-made for funding businesses. Based on the advantages of the two, you can choose a loan that works best for you.

As an NRI can I apply for a personal loan?

Yes you can. However, you need to find out which banks offer personal loans to NRIs because not all banks in India do. In cases where the bank offers such a loan, you can only be a co-applicant of the loan. The main applicant has to be an Indian resident who is a close relative to you. Moreover, you need to be in India while applying for the loan and you must have an NRE or NRO account.

I am a senior citizen. Can I apply for a personal loan?

Senior citizens, who are earning pension, can apply for personal loans. Not all banks offer this loan facility to pensioners. So check with your bank if they have such an offer. The banks that do offer personal loans to pensioners have age limits which you must not exceed at the time of repayment period. Banks offer personal loans which are usually 10-15 times the monthly pension amount.

Does Form 16 count as income proof?

For self-employed individuals seeking personal loans, IT returns are considered as income proof by banks and lenders. Self-employed individuals also need to submit a computation of their income and a profit and loss statement for the past two years. These documents have to be certified and audited by a chartered accountant. They also need to submit a copy of Sole Proprietorship Declaration or Certified Copy of Partnership Deed.

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