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Debt, when used wisely, can be a valuable tool to achieve many things in life. As a long list of responsibilities accompanies everyone as we step into adulthood, it becomes imperative to borrow from banks to fulfill some of the big responsibilities. Loans are available in many forms such as personal loans, home loans, education loans, and car loans, etc. Knowing the loan application process, documents checklist and other pre-requisites help you avail of loans quickly. 

Prerequisites of a loan vary depending on the type of loan you avail of. Though the checklist of documents may slightly vary among the lenders, let’s take a look at the general documents checklist for availing various loans.

Loan Documentation Checklist and Pre-requisites for Loans

Personal Loan

Eligibility criteria to avail of a personal loan are dependent on your disposable income. Eligibility criteria, age limit, and credit score may slightly vary from lender to lender. To get the best deal on personal loans with respect to interest rates, ensure you meet the basic eligibility criteria along with a good credit score of 750+. The following are the documents required for a personal loan in India.

  • Duly signed and filled loan application
  • PAN card copy
  • Proof of identity – Copy of Voter ID card/ PAN card/ Aadhaar card/ Driving license/Passport, etc
  • Proof of address- Copy of Aadhaar card/ Driving license/ Voter ID card/ Passport, etc.
  • Income proof – Latest salary slip/ Last three months bank statement/Updated passbook/ salary certificate
  • Passport size photographs

Education Loan

Most of the Indian banks offer education loans at an attractive rate to deserving students on flexible terms. Let’s take a look at the prerequisites for availing education loans. 

Parameters Eligibility
Nationality Indian
Academic Record Good
Age Limit 18 years to 35 years
Source of income Parents or Guardians with stable income
University applied for Any recognized Universities in India or Abroad
Admission status Confirmed with an admission letter from the Institute
Security Loan guarantor or collateral depending on the income source and the amount of loan required.

Documents required for education loans in India:

  • Duly signed and filled loan application
  • Academic document – Admission letter from the Institute with fee break-up and mark sheets of SSLC, HSC and Graduation and scholarship documents, if any
  • Declaration or affidavit confirming that no loan is availed from another financial institute
  • Age proof – SSLC mark sheet/Birth certificate
  • Signature proof – Passport/ PAN card/Bank passbook having signature and photograph attested by concerned bank official/Post office ID card, etc.
  • Identity proof – PAN card/Voters ID card/Passport/Driving license/Aadhaar card, etc
  • Address proof – Passport/Ration card/Driving license/Bank passbook/ Aadhaar card/ Voter’s ID card, etc.
  • Travel papers along with visa approval
  • Passport size photographs
  • Copy of foreign exchange permit in case of a loan to study abroad
  • In case of a loan with collaterals, furnish every detail of security

Documents Of Co-Applicant

  • Identity proof
  • Address proof
  • Last 3 months salary slip/salary certificate/ Last 2 years of ITR

Documents required for subsequent disbursement

  • Disbursement request form signed by loan applicant and co-applicants
  • A demand letter from the university
  • Receipts of margin money paid to the university along with the bank statement reflecting the transaction
  • Form A2 signed by both applicant and co-applicant in case of loan for study abroad

Home Loan

Home loan eligibility depends on income, repayment capacity, and various other factors. Requirements may vary from lender to lender. Let’s take a look at the common prerequisites for availing home loan.  

Parameters Eligibility
Age limit 21 years to 65 years, may vary from lender to lender depending on whether you are salaried, self-employed and businessmen.
Monthly income Should not be less than INR 25,000
Employment history 3 years of job continuity
CIBIL Score 650+
Loan to value ratio Banks can fund 75-95% of property value. Know LTV to understand the maximum loan you can avail
Property type Approved by banks

Home loan documents required would also differ depending on the purpose of the loan, loan scheme, and the credit profile of the borrower, etc. The following are the common documents required for home loans in India along with the duly signed and filled loan application.

  • PAN card copy
  • Passport size photographs
  • Proof of identity – Copy of Voter ID card/ PAN card/ Aadhaar card/Passport/Driving license, etc
  • Proof of address- Copy of Aadhaar card/ Driving license/ Voter ID card/ Passport/latest utility bills, etc.
  • Proof of age – Copy of Aadhaar card/ Driving license/ Voter ID card/ Passport/Birth certificate/ SSLC marksheet
  • Proof of income – Latest salary slip/ Last three months bank statement/Form 16/ Updated passbook/ salary certificate/ ITR for last three years, etc.
  • Income proof for self-employed – ITR for 3 years/ Balance sheet/ Profit and Loss statement attested by C.A./ License of professional practice/ Business license details and business address/ Registration Certificate of Establishment.

Property Documents

  • Detailed estimates of the cost of construction of the house
  • Registered sale deed (original document)
  • Property tax receipts
  • Allotment letter from private builder/society
  • An approved copy of the building plan and floor plans for flat purchase
  • Occupancy certificate for the purchase of ready-to-move-in properties
  • Electricity bills and maintenance bills
  • Advance payment receipt (original) 
  • A bank account statement showing the payments made to the builder

Vehicle Loan

Vehicle loan eligibility requirements may vary from lender to lender. Know the basic eligibility requirements such as age limit, income limit, and vehicle model, etc. The following are the documents required for applying for vehicle loans in India along with the duly signed and filled loan application.

  • Proof of identity – PAN card/Passport/Permanent driving license/Voter ID card/ Job card issued by NREGA/Aadhaar card, etc.
  • Proof of Residence – Permanent driving license/Passport/Voters ID card/Aadhaar card/ Letter issued by National Population Register containing the name and address details, etc.
  • Last 6 months Bank statement
  • Latest salary slip/Form 16/ latest ITR 
  • Passport size photographs

Knowing the prerequisites to apply for loans and keeping the relevant documents ready helps in getting the loan processed smoothly and quickly. The important thing to avoid while applying for loans is making any mistake in the application form and submitting all the documents right on the first go. Keep the documents ready before you apply for a loan for a smooth process.

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