Documents to Apply for a Personal Loan
Identity proof (Passport, PAN card, driving license, voter ID) Signature Proof (Passport, PAN card, etc.) Address proof (Passport, utility bill – gas or electricity bill, voter ID, driving license, ration card, rental agreement, bank statement) 6 months bank statements.
Just so, are personal loan agreements legal?
An agreement to advance money as a loan is a contract between the lender and the borrower. A contract made orally is just as binding as a contract in writing. … A written agreement signed by the parties will assist the Court in deciding that the money was a loan.
Also, can I give loan to anyone?
Gifts from family members are not taxable, neither are the loans. But any gift above Rs 50,000 from a friend (non-relative or anyone who falls outside the definition of ‘family’ under the Income Tax Act) during a financial year is taxable. However, if it’s a loan (with or without interest), it becomes tax-free.
How do I write a loan application?
Points to Note When Writing a Loan Application
- Address to the right authority.
- Reason for the Loan i.e. how the money will be spent.
- Be Specific about the amount.
- Present positive attributes about yourself to ensure you are trustworthy.
- Mention how you intend the loan to be repaid.
To draft a Loan Agreement, you should include the following:
- The addresses and contact information of all parties involved.
- The conditions of use of the loan (what the money can be used for)
- Any repayment options.
- The payment schedule.
- The interest rates.
- The length of the term.
- Any collateral.
- The cancellation policy.
You’ll need to show us your two most recent payslips, or if you’re self-employed, we’ll need your personal tax return or notice of assessment (less than 18 months old).
No, blank cheque duly signed by you not to be given. You can give mandate to the bank to debit your account for EMI . In normal course bank never insist for blank cheque duly signed for loan repayment.
ITR – When you apply for personal loan as a self-employed, it is mandatory to have filed ITR in previous years. Banks and NBFCs will give you a loan if you have filed ITR of minimum 2 years.
Documents Required for Personal Loans
- 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).
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.