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Need a Loan? Here's all You Will Require for a Quick and Easy Loan Application Process

Introduction

Loans are available for various reasons, but effectively, all those reasons mean growth in your life and lifestyle choices. Loans are readily available these days from multiple trustworthy firms, banks, and companies. But the processing of any loan will be incomplete without the submission of proper documentation.

Loan Application Checklist

Different documents are required to avail various kinds of loans such as home loans, education loans, car loans, personal loans, etc. The loan amount that you apply for can be as low or as high as you desire. But the strength of your documentation will play a pivotal role in assessing how much loan banks and other loan advancing companies can extend to you. That is because each of the required documents holds significance as they help evaluate you financially and serve the essential purpose of identifying you and your place of residence.

Here is a category-wise snapshot that lists the documents that you may require for the most commonly applied loans,

Particulars/ Loan Category

Home Loan

Education Loan

Vehicle Loan

Personal Loan

Filled Loan Application along with necessary signatures

Yes

PAN

Yes

-

-

Yes

Identity Proof

Aadhaar card, PAN card, Voter ID card, Driving licence, Passport, etc.

Address Proof

Aadhaar card, PAN card, Voter ID card, Driving License, Passport, Ration Card, Latest Utility Bills, etc.

Income Proof

  • Last salary slip, Last three months bank statements, Form 16, Updated passbook, Salary certificate, Last 3 years of ITR, etc.

  • For a self-employed individual – Last 3 years of ITR, Chartered Accountant Attested Balance sheet or Profit and Loss statement, Registration Certificate of Establishment, etc.

Last 3 months salary slip, salary certificate, Last 2 years of ITR

Last six months Bank statements,

Previous salary slip, Form 16, Latest ITR

Last salary slip, Last 3 months bank statements, Updated passbook, Salary certificate

Passport size photographs

Yes

Age Proof

Secondary School Leaving Certificate, Birth certificate, Aadhar Card, Driving License, etc.

 

Secondary School Leaving Certificate or Birth certificate

 

-

-

Category Specific documents

  • Construction cost estimates of the house

  • Sale deed

  • Receipts of Property tax

  • Allotment letter issued by Builder or Society

  • Approved building plan along with floor plans in case of a flat purchase

  • Occupancy Certificate(OC) in case of ready-to-move-in properties

  • Utility bills such as Electricity and Maintenance bills.

  • Advance Deposit payment receipt

  • Bank statements reflecting the payment transactions done to the builder

  • An admission confirmation letter with a fee structure from the applied University

  • Mark sheets of Secondary, Higher Secondary, and Graduation School.

  • Scholarship documents, if any

  • A declaration to confirm that you have not availed loan from any other financial institute

  • Documents to prove your travel such as visa approval letter, foreign exchange permit, etc

  • Duly signed Form A2

  • Receipts reflecting the margin money given to the University

 

 

Eligibility Criteria for Loans

Home Loan

The eligibility criteria for securing a home loan largely depend on your sources of income and capacity to repay the loan. Here are the general prerequisites to qualify you for a home loan,

  • You should be 21-65 years old if you are salaried or self-employed. This criterion may vary for a business person.

  • Your monthly income should be over Rs 25000, and there should be at least 3 years of employment continuity.

  • Your property should be approved by the bank with a CIBIL score of at least 650.

Additional Read: How to file ITR for Home Loan

Education Loan

Procuring an Education loan is easy for deserving students. Banks and loan advancing institutes have chalked out general prerequisites to qualify you for a loan,

  • You should be an Indian national.

  • You should be 18-35 years old and have a good academic record.

  • As a student, your main source of income is your parents or guardians. They should be financially sound.

  • The University you have applied for should be well recognized in Indian and abroad.

  • Your admission status from the concerned University should be confirmed

  • You may need a loan guarantor or any collateral against the loan amount that you require

Personal and Vehicle Loan

The eligibility criteria for these two loan categories vary depending on who the loan-advancing institute is. The amount of loan required, age, the reason for personal loan, vehicle model, income and repayment capacity, etc are some common grounds to decide if you will be eligible for the loan.

Additional Read: What Are The Tax Benefits On Personal Loans?

Conclusion

Debt has become a part of our lifestyle in the current times. Increasing demand for better lifestyle choices and easy availability of low-cost loans from trusted vendors are the key reasons for this. The process of applying and processing any loan becomes relatively quick and easy if you meet the eligibility criteria for the loan and have the necessary documentation in place.

Additional Read: What are the Documents Needed for Filing Income Tax Returns in India?

Disclaimer:

ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.  Please note, loans related services are not Exchange traded products and I-Sec is acting as a distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing.

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