Taking out a personal loan is quite simple and convenient. There are a number of options including banks, non-banking financial companies (NBFC) and digital fintech platforms, among others.
Although most banks still offer the option to take out a loan offline, the most feasible and desirable option is to take out the loan online.
Applying for a loan online is quite simple. You fill out a form, enter your personal details, after which you receive an OTP on your phone that you need to enter for the purpose of authentication. Once all these details have been submitted, you will be asked to submit other essential documents.
These documents include salary slips for the last three months, PAN, Aadhaar, employment proof, guarantor contact number and other details.
It is vital to note that the process is usually completed only after you complete the Aadhaar-based authentication, which is done through an OTP sent to your mobile number.
For this, the applicant must have completed his Aadhaar eKYC and linked a mobile number through Aadhaar.
Important documents required for a personal loan:
1. Payslips: The bank or other lender will ask you to submit pay slips for the past three months so that you can assess your ability to repay the loan. The lender typically assesses your liquidity based on your cash on hand.
Because there is a significant difference between the gross salary and the money that is made available to you, the salary slip indicates how much money is made available to you.
2. PAN: You will be required to submit a Permanent Account Number (PAN), a key document for any income tax related transaction.
3. Aadhaar: This 12-digit, twelve-digit unique identity number works as an address and proof of identity.
4. Proof of employment: The applicant must also provide proof of employment, such as an identity card and an appointment letter.
5. Final review letter: If the latest salary is higher than what is stated in the appointment letter, the lender can even ask for the most recent appraisal letter so that the salary stated in the appointment letter can be compared with that on the pay slips.
6. Deposit: Although a personal loan is an unsecured loan that does not require any collateral or guarantee, the lender may still ask for the name and contact details of a guarantor, who can be contacted if the loan applicant becomes incommunicado.
Sometimes the lender may even ask to show salary slips for the past six months. In addition, there may be other documents that the lender may request, which may vary from case to case.
