FAQs About Documents Required For Personal Loan In India
Personal loans are a popular financial tool in India, offering individuals the flexibility to meet various financial needs. While applying for a personal loan, understanding the necessary documentation is crucial to ensuring a smooth and successful application process. In this article, we will address some frequently asked questions (FAQs) about the documents required for personal loan in India.
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Q: What are the essential documents needed to apply for a personal loan in India?
A: To apply for a personal loan in India, you will need the following documents.
- Aadhaar Card
- PAN Card
- Address proofs
- Income proofs
- Bank Statements (usually for the last 3-6 months)
Please keep in mind that the lender may request additional documents based on your profile or the lender’s eligibility criteria.
Q: Do I need a co-applicant or guarantor for a personal loan?
A: Most personal loans in India do not require a co-applicant or guarantor. Your eligibility and creditworthiness are primarily assessed based on your documents and credit score.
Q: Is a PAN card mandatory for a personal loan application?
A: Yes, a PAN (Permanent Account Number) card is typically required for KYC purposes and to ensure tax compliance.
Q: What documents serve as income proof for a personal loan application?
A: Income proof documents include salary slips, the Income Tax Return (ITR), Form 16 (for salaried individuals), and for self-employed individuals, profit and loss statements, and the ITR related to the business.
Q: Can I use a rental agreement as an address proof for a personal loan?
A: Yes, a rental agreement is generally accepted as a valid address-proof document.
Q: Should I provide original documents or photocopies when applying for a personal loan?
A: Typically, photocopies of your documents are accepted during the application process. However, lenders may ask for original documents during the verification process.
Q: What role does a credit score play in the personal loan application process?
A: Your credit score is crucial in determining your eligibility for a personal loan. A good credit score (usually 750 or above) can increase your chances of approval and help secure better loan terms.
Q: How long does it take to get approval for a personal loan after submitting the documents required for personal loan in India?
A: Approval times vary, but typically take a few days to a week, depending on the lender and the complexity of your application.
Q: What happens if I provide false documents during the loan application?
A: Providing false documents is illegal and can result in the lender rejecting your loan application and taking legal action, which can harm your credit history.
Q: Is it possible to apply for a personal loan in India online?
A: Yes. Nowofloan provides you with a digital platform where you can easily apply for a personal loan in India.
Q: What does Nowofloan do, and how is it unique?
A: Nowofloan is one of India’s fastest-growing financial consultants, working with a number of NBFCs. The unique feature of Nowofloan is that you can obtain pre-approved personal loan offers from these partnered NBFCs where your profile meets the eligibility criteria without affecting your credit score.
Nowofloan also assigns you a dedicated financial consultant who will assist you with all inquiries and ensure a smooth loan application process.
Q: How do I apply for a loan through Nowofloan?
A: Click here to apply for a personal loan through Nowofloan.
Q: Where can I check the status of my loan after applying with Nowofloan?
A: You will be given a personalized tracking portal where you can check the status of your loan process and view all notifications.
Q: Will applying for a personal loan with Nowofloan affect my CIBIL score?
A: No. As mentioned earlier, your CIBIL score will remain unimpacted.
Navigating the application process becomes more manageable when you have a clear understanding of the documents required for personal loan in India. By ensuring you provide accurate and complete documentation, you can increase your chances of a successful personal loan application and achieve your financial goals.
