Why Finnable requests certain documentation & information for Personal Loan?
Personal loans are unsecured loans in nature. It means that you, as a borrower, are not required to pledge any asset against the loan. So how do NBFCs like Finnable disburse loans without collateral? They request you to provide certain documents that are essential during the loan process.
These documents are known as personal loan documents. Every lender has a personal loan document list that needs to be provided at the time of applying for the loan.
Finnable will ask you to provide these personal loan documents to corroborate your identity as well as verify your financial status. They need to know if you are who you say you are and that you have the means to repay the loan that you have taken.
What are Personal Loan documents?
Applying for a loan is no longer a tedious task. Gone are the days when you needed to submit a loan application, then wait to hear from the lender and finally start preparing the loan documentation.
You can now apply for quick and easy loans through personal loan app. All you need is a set of documents that need to be uploaded to the app itself. These are your personal loan documents.
These documents will verify your identity, your proof of residence as well as your employment status and income proof.
Documents required for Personal Loan?
Before applying for a loan, you need to check your personal loan eligibility. Each lender will have its specific criteria. You can check Finnable’s personal loan eligibility on the website or personal loan app.
Once you meet all the criteria set, the following documents will be required for the loan:
Sr No | Document Required | Reason for the document |
1 | PAN Card | Your PAN card is used as proof of identity. It provides the lender with evidence that proves you are who you claim to be. |
2 | Aadhar Card | As your proof of nationality and residence, your Aadhar card is an important document. Since Finnable disburses loans only to Indian nationals, you need to submit your Aadhar card. |
3 | Salary Slip | As proof of income, you need your 1 month’s salary slip. This document is proof that you hold a valid job in a private or government company. |
4 | Bank Statement | Bank statements for 3 months need to be provided. This document shows that you have received income for 3 months from the organization where you have been employed. |
Why are these documents required for a Personal Loan?
Unlike secured loans, unsecured loans tend to have a high-risk factor for the lender. The reason for this is that there is no collateral to be provided against the loan and the lender disburses the loans based only on the documentation.
This is why personal loan documents are important. It lets the lender know that you are a trustworthy borrower and have the means to repay the instant loan in full during the course of the loan tenure.
It also helps the lender verify your identity, your income, and your employment status in order to gauge that you are not a risky borrower and that the chances of you defaulting on the loan are negligible.
Conclusion
Once you meet the eligibility and collect the required documents, all you need is the personal loan app, which is available on Play Store or App Store. You can apply for the loan in 3 simple steps.
What you need to remember is that you do not need any additional papers to avail different loans. Be it an education loan or medical loan, all you need to do is provide your KYC and income proof.
You can take a loan of up to Rs. 10 lakh and have a loan tenure of upto 5 years at affordable interest rates that start at 16%.
However, while filling out the online form, ensure that you add all the details and upload all the required documents. These papers will be verified by Finnable and the funds will only be disbursed post the verification process.
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