What are the documents required for a loan approval?

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List of Documents

  • Proof of Identity:- Passport / Driving License / Voters ID / PAN Card (any one)
  • Proof of Residence:- Leave and License Agreement / Utility Bill (not more than 3 months old) / Passport (any one).
  • Latest 3 months Bank Statement (where salary/income is credited).
  • Salary slips for last 3 months.

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Consequently, how do you get approved for a loan?

Having a good credit score plays an important role in the approval of your loan application. Credit scores are calculated by taking into consideration your debt to credit ratio and your repayment history. The more punctual you have been in repaying previous loans, the greater the chance of your loan being approved.

Also question is, how do you write a loan document? To draft a Loan Agreement, you should include the following:

  1. The addresses and contact information of all parties involved.
  2. The conditions of use of the loan (what the money can be used for)
  3. Any repayment options.
  4. The payment schedule.
  5. The interest rates.
  6. The length of the term.
  7. Any collateral.
  8. The cancellation policy.

Additionally, what are the basic loan documents?

Every lender has unique eligibility and application requirements, but lenders often look for the same basic documentation such as personal and business credit reports, bank statements, financial statements and your business plan.

What are the requirements to get a loan?

Here are five common requirements that financial institutions look at when evaluating loan applications.

  • Credit Score and History. An applicant’s credit score is one of the most important factors a lender considers when evaluating a loan application. …
  • Income. …
  • Debt-to-income Ratio. …
  • Collateral. …
  • Origination Fee.

2 Related Question Answers Found

What is a loan documentation?

Loan documents are documents provided and requested by lenders for the purpose of providing a loan. They are typically statements of personal and financial information of the borrower to approve a loan. … Some documents that may be required are tax returns, bank statements, pay stubs, W2, and a proof of income.

What is loan documentation process?

This webinar will expose participants to five steps in the loan documentation process, which includes: Identifying the Borrower. Identifying and Documenting the Collateral. … Attaching the Collateral. Perfecting the Security Interest.

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