Getting the Documents Right for Applying Loan

Getting the documents in place is one of the primary requirements of any loan application, be it personal or home. Here is a primer on how to get it right.

Getting the Documents Right for Applying Loan

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Loan processing depends heavily on applicant’s own readiness, as much as it hinges on the processes and technologies deployed at the lender’s end. It is an integral part both from the point of view of credibility check as well as compliance needs.

Before applying for any Loan, one should get all the paperwork ready at one’s level so that s/he does not face any delay in the process from at least one’s own side. The check-boxes that need to be ticked off are:-

  • Identification Documents:- The latest ID which is valid can be the Aadhaar Card as it serves all the requisite information like name, address, photo and birth date etc. If one does not have the Aadhaar Card, other ID proofs like Driving licence, Voter card, PAN card etc. should be kept handy.

  • Income Proof:- In this category, a latest salary slip or Certificate of current salary, latest form 16 can be given if the applicant is from the Salaried Class. If s/he is a self employed individual or a working professional, then PAN Card, latest ITR may be required.

  • Bank Statement:- A bank Pass-book of 6 months or Bank-statement should also be kept ready so that the current financial position of the applicant can be ascertained easily.

  • Other Documents:- Some more documents which are necessary depending on lending organization, protocol and loan type can be Sole Proprietorship Declaration, Original copy of Memorandum and Articles of Association which should be certified and Original Board Resolution can be given in case of a Self-employed person.

These were some indicative-basic documents which are often needed to apply for a Loan. What is important to remember is to take adequate information about the necessary documents and formalities that could be crucial for a loan process. Having the papers in proper shape and time can cut short the processing time to a large degree. It can also influence the credit assessment, loan-window and interest-discussion to your advantage.

More importantly, documents are reflective of your credibility, transparency and identity so make sure that you have them ready and rigorous to accelerate and smoothen that application process.

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