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In today’s run-of-the-mill life, sometimes the crisis of money pushes us towards taking a loan. Whether it is medical emergency, marriage expenses, or any other need, personal loan has become a quick and popular solution. But the biggest obstacle in the process of taking loan is necessary documents. If you do not have the correct papers ready, then the loan acceptance may face a delay or rejection. In this article, we will tell you which documents are needed to get a personal loan and how you can make this process easier.

Why is a personal loan special?

The biggest feature of personal loan is that you do not need to mortgage any guarantee or property to take it. It is an unsafe loan, which banks or financial institutions approve of your income, credit score, and documents. But this process can be complicated without the right papers. Therefore, if you are thinking of taking a loan in the future, then it is prudent to keep your documents ready in advance.

Documents required for personal loan

Personal loans require some basic documents that verify your identity, address, and income. First of all, you will need identity cards such as Aadhaar card, PAN card, or passport. In addition, proof of address such as electricity bill, rental agreement, or voter ID is also mandatory. To give proof of your income, documents like salary slip, bank statement, or income tax return are required. If you are self-employed, then you may also have to give business papers such as GST registration or profit-loss statement.

Documents preparation tips

Always keep your documents updated to speed up the loan process. For example, if your Aadhaar card is old or the address is wrong, get it fixed. Keep a record of the last 3-6 months for the bank statement. In addition, keep an eye on your credit score as well, as this loan plays an important role in acceptance. Keep both soft copy and hard copy prepared of all documents, so that they can be deposited immediately when needed.

Avoid mistakes

Many times people submit wrong or incomplete documents in a hurry, which stops the loan process. For example, if your PAN card and Aadhaar card have different names, the bank will not accept it. Similarly, the application of the loan without proof of income is considered incomplete. Therefore, check all the papers carefully and make sure they are according to the bank’s norms.