What Documents are Needed to Apply for an Instant Loan?

What Documents are Needed to Apply for an Instant Loan?

Instant or quick loans are a good source of arranging funds for medical emergencies, urgent purchases, sudden travel expenses, or any other unplanned expenditure. These loans can be applied online or offline and do not involve massive paperwork. All that the applicant needs to do is fill up the form and submit certain essential documents as proof of personal details and income. Here is a list of documents required to apply for an Instant Loan. Let us look at the different documents that need to be submitted along with the instant loan application.

KYC Documents

An essential part of the process of applying for an instant loan is to complete the KYC or Know Your Customer formalities.  The loan-providing bank requires you to submit documents proving that you are eligible to apply for the instant loan. This includes documents showing your date of birth or age and that you are a resident of India. The documents that need to be submitted are:

  • Proof of Identity– The documents that can be submitted to prove your identity include your passport, driving license, voters ID card, PAN Car and Aadhar Card. You can also submit the job card issued by NREGA duly signed by an officer of the State Govt.
  • Proof of Residence– This includes your Lease Agreement or Passport or a recent utility bill for your address. Other documents that can be submitted include the latest pass book of a scheduled commercial bank, property or municipal tax receipt or the letter, or allotment of accommodation by the employer.

Proof of Income documents

A major requirement for instant loans is that the applicant should have a stable source of income and be in a position to repay the borrowed time. The lending agencies sanction instant or quick loans only to those individuals who have a regular salary income or our self-employed after checking their previous income statements or financial position.

This is possible when the applicants submit their salary slips for the three months before applying for a loan or income statements (in the case of self-employed people). Some lenders may also require you to submit copies of your bank statements.

Passport Size Photographs

You will also be required to upload your passport size photograph for record purposes.

In addition to these documents you also need to ensure that you have a good credit score of above 700. This is important because instant loan providers or banks will lend only if they are assured of your credit worthiness. While your income proof assures them of your stable income, they want to be sure of your willingness and track record of repaying your loans or making your EMI Payments on time. This is done by checking your credit score.

You can have a good credit score by paying all your bills including utility and credit card bills on time. The timely repayment of all your other loans including a vehicle loan or home loan, or personal loans will also boost your credit score. A good credit score not only raises the chances of your instant loan getting approved quickly but also ensures that the personal loan interest rate is low. However, if you have a low credit score, the lender may sanction the loan but charge a higher interest rate.

Categories: Business

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