Whenever a financial institution provides some loan to a person, team or association, it ensures that all the details about the customers are got well in advance.  Well, this process is compulsory as per law.  We try to make customer’s burden little bit less by reducing the unnecessary formalities. Whatever is required as per Law has to be followed by the customer who cannot be avoided.

Data collection for loan approval

Well, a collection of personal details of the customers before issuing loan is a practice which is followed by the time this sort of business has started.Business is an activity done to earn some profit and is expected to be done within the limits of the law. Business may be any manufacturing or trading and can be done on small scale, medium scale or large scale.  Lending of financial assistance to businessmen was done by some money lenders in previous days.  But now at the time, more and more people are doing business, lending loan amounts to businessman has it become a business.

The amount invested in the business depends on what type of business it is. In case of small or medium scale, the formalities required for sanctioning of loans is comparatively less than in case of large scale.  Both, the amount as well as the formalities and regulations are more. Customers can always expect to get speedy services along with proper coordination.

Are you confused about the documents required to get a loan amount sanctioned?

Well each and every financial institution has its own working style and documentation requirements.  There are many types of loans given by a financial institution such as home loans, student loans, auto loans, personal loans, mortgages, business loans, debt consolidation loans, home equity loans etc.  One has to decide what sort of loan he/she requires.  Each and every type of loan has some separate formalities. But as per LAW, the following are common documents which each and every financial institution has to maintain in relation to their customers:

  • Photograph of the customer: Recent photograph of the customer is a must. 1 or 2 photos have to be given to the financial institution for their records purpose.
  • Residence Address Proof: The proof should be any of the following: Driving License, Passport, Registered Rent Agreement or Electricity Bill (up to 3 months old).  The address proof given should be the present place where the customer is staying.
  • Identity Proof: Driving License or Passport. These should show the identity of the customer.
  • Age Proof: This is a must in case the customer applying for a loan is a senior citizen or a minor.
  • Documents showing personal financial status: Latest salary slips (at least six months), Bank statements (at least six months), two years Form 16 (related to Income tax) filed. These are required to ensure that the customers are paying the taxes regularly and fairly to the Government.

Hopefully, you can now get a clear idea about the documents that one needs to get a loan amount. No matter whatever the loan amount is, the document requirements will always be the same.