Banking and finance companies are required to follow extremely strict rules before approving loans. This involves collecting all the information necessary since an incomplete loan application is very unlikely to be approved.

Applying for a loan is a simple process if you have everything you need. However, this can become complicated because the documents required to make a successful application can change depending on which bank or finance company you go to.

It is advisable to carry the following documents when you are trying to apply for a loan, some of the documents are situational and need to be carried only if you are trying to apply for a specific type of loan.

Basic documents

At the most basic level, you will need to provide a proof of identity, age and residence in order to apply for a loan. You are required to carry at least two proofs for the above. The most commonly used documents for this are Aadhar card, driver’s license, voter ID, ration card, Passport and PAN card.

It is advisable to carry at least 2 of these when you are about to apply for your loan. In addition to these, you can also carry a utility bill (water, electricity, property tax etc.) as a proof of residence.

Financial documents

Most banks and financial institutions will require a proof of income before they accept a loan application. You may also be required to provide bank statements for up to 2 years. It is a good idea to get a bank passbook with photo ID and address proof and keep it regularly updated even if you view all your statements online.

If you are a salaried individual, you will be required to provide salary slips for up to 6 months along with copies of form-16 for the same duration. It will also help to carry any income tax returns you have filed in the last two years.

If you are self-employed, then you will have to provide income tax returns for upto 2 years along with the computation. You may also be required to provide proof of your office address and ownership as applicable.

Property Documents

If you are taking a loan with a property as security, you will need to provide proof of ownership and supporting property documents as prescribed by the bank of financial institution. Depending on the nature and size of the loan, you may require to provide additional documents as required by the bank or financial service that you are using.

Learn more about your Personal Loan Eligibility here.


The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

Trending Articles

Article Links

Financial Advisor

Recurring Deposit vs Fixed Deposit

What is Fixed Deposit

What is a Credit Score

What is a Savings Account

Latest Articles


Income Tax Benefits on Costs of Education under Section 80E

Read More
Posted on 18 February 2020

Is Transport Allowance Paid to Employees Fully Taxable?

Read More
Posted on 18 February 2020

What should you know about switching careers at age 40?

Read More
Posted on 11 February 2020