Is Personal Loan Document Free Possible?

Last Updated : June 27, 2020, 2:49 p.m.

Have you ever thought of getting a personal loan document free? Yes, getting a personal loan without documentation is possible. In simple terms, document free loan means that the borrower can get a personal loan without documents or documentation charges and is available for both salaried as well as self-employed individuals. However, there are some financial institutions that offer personal loan without any documentation process but this benefit is majorly for the existing customers. The reason behind this is that the customer has been associated with the bank and the documentation or CIBIL score record is already present, it is easier for the bank to give document free personal loans to these customers. Also, getting a personal loan without documents is more applicable to pre-approved loans where you are an existing loan borrower and your documents are already with the bank. So, in this case, you do not have to go through the same process again and enjoy the instant loan approval very easily.

Getting a Loan Document Free

Personal loans as you know are generally unsecured where there are no restrictions on the usage of money from the banks or NBFCs. This loan is available for both salaried as well as self-employed individuals depending on their overall profile. As you know you have to have the list of documents listed by the financial institution and the documentation required by the bank or NBFC is subject to change from one applicant to another. Let us know in detail the documents and other related information when it comes to a personal loan.

Documents Required for Personal Loans

The general documentation for the salaried as well as the self-employed individual are as follows:

For Salaried Individuals

• Loan Application Form
• 2 Passport size photos
• Salary Slips for last 3 months
• Identity Proof – PAN Card or Driving License or Voter ID Card or Aadhaar Card, etc.
• Residence Proof – Driving License/Voter ID Card/Aadhaar card, etc.
• Last 3 months Bank Statements
• Employment Proof
• Signature Proof

For Self-employed Individuals

• Loan Application Form
• 2 Passport size photos
• Identity Proof – PAN Card or Driving License or Voter ID Card or Aadhaar Card, etc.
• Office Residence Proof
• Income Proof – Audited financials for the last 2 years
• Last 6 months Bank Statements
• Employment Proof
• Signature Proof

In addition to this, there is a personal loan eligibility criteria on the basis of which this loan is offered and this criterion is also subject to change from one lender to another and from one applicant to another. Another important thing to note is that there are certain factors that affect the loan eligibility and these factors are subject to change from loan to loan.

Factors affecting Personal Loan Eligibility

Banks and NBFCs accept personal loan applications only when the applicant meets certain the following factors:

Monthly income – When it comes to loans, the income of the applicant is given the highest priority. Banks find it easier to trust the applicants who have a good source of income as the repayment is smoother in this case.

Age – Generally, the age required by the banks or NBFCs is between 21-58 years. Since young applicants are usually free from major financial responsibilities, it is taken as an important factor in the applicant’s profile.

Monthly expenses – After meeting all the financial responsibilities, the remaining income is considered by the bank as your monthly saving and generally you must have the saving of more than 50% of your monthly income.

Any other loan – Applicants who have no running loan are free from any other loan are able to do easy repayment so lenders take it as an add-on point.

Credit history – Lenders keep a close check on the credit history of the applicant and expect a good credit or cibil score that is more than 750.

Job stability – When it comes to a personal loan, the stability in the profession is also taken into account. Since there are special offers on interest rates for listed companies, banks need to trust that the borrower is stable in the profession and must have the experience of at least 2 years in the profession.

Category of the employer – There are some special offers on personal loan interest rates for some of the reputed firms or MNCs. So, if you are working in an MNC, you will get a lower rate of interest as compared to others.

Thus it is quite clear that if you are eligible to get a personal loan, there is a possibility that you can get document free loan as well. So, check out the banks who are offering personal loan document free and apply for it now!