A personal loan is lucrative to meet financial needs like debt consolidation, major purchases, or unexpected expenses. A personal loan requires you to submit many financial documents.
So, what paperwork is needed for a personal loan? You need to submit documents like identity proof, address proof, income proof, etc. Also, you might need to submit some other documents, like property paper, stock inventment, etc. Also, what do you need to get a personal loan?
Top US bankers discuss this in detail.
Why Paperwork Is Needed for a Personal Loan Approval
You must submit various personal and financial documents to get personal loan approval. The lenders require these documents to evaluate your eligibility for the loan while getting some identification to take legal action if you fail to repay the loan amount. Plus, how soon can you refinance a personal loan?
Critical Review: What Paperwork Is Needed for a Personal Loan?
The following is the paperwork you need to submit for a personal loan.
Identity Proof
Banks want to ensure you are the exact person who has applied for a loan. So, you have to submit proof of your identity, like a passport, state ID card, or driver’s license, along with your loan application. In some cases, submitting an identity proof can do the work. Can you use a personal loan to buy a house?
Social Security Number
To complete your personal loan application and allow the lender to perform a credit check, you must provide your Social Security number or Tax Identification Number to the lender. It’s important to know that this credit inquiry may temporarily affect your credit score, so be prepared for that possibility.
Address Proof
Billing address is a crucial matter in the case of getting a personal loan. Lenders will ask you to provide evidence of their current address. It is the confirmation that you indeed reside at the address provided during the application process.
To submit address proof, you provide an official document such as a utility bill, lease agreement, bank statement, or similar document. However, the document must display your name and present your residential address in clear letters. Besides, how long does it take to get approved for a personal loan?
Income Proof
You must prove you have sufficient income to qualify for a personal loan. For this, you can submit either the bank statement of your salary account or a letter of employment from the employer.
Additional Document Requirement
Apart from the documents mentioned above, there are some other additional documents you may need to submit. In most cases, these documents are the must-submit if you go for a secured personal loan. Moreover, is Next Day personal loan legit?
Investment-related Documents
If you have any investment in stock, another company, or you are a sleeping partner of a company, you need to submit respective documents. You must ensure that these documents are verifiable by the respective entity, i.e., the bank or financial institution.
Property Documents
If you are taking a secured personal loan, you must submit documents showing you have the required assets. These documents can be your home paper, car paper, land paper, etc.
Income from Side Hustle
You must submit the respective documents if you have earnings from any side hustle, freelancing, etc. This type of document strengthens your personal loan application. Also, if you have any active agricultural land, you add the financial document of this income as well. Furthermore, learn signs your personal loan will be approved.
What to Do if Any Document Is Missing
If you fail to arrange any of the mentioned documents, we suggest you consult with the respective official or financial institution. They will ask for an explanation of why you are unable to submit the document. Upon explaining, they will inform you about some alternative documents. Arrange those alternative documents and complete the application process. Plus, do you need a down payment for a personal loan?