Versatile and restriction-free, a Personal Loan is a saviour when you need cash urgently. Many lenders today provide paperless documentation facilities which means that you only have to provide scanned copies of your documents. As the applicant, you should never provide incomplete or fake documents as it is a justified cause for lenders to reject your loan application. Here are some documentation-specific things you must avoid to ensure lenders pass your Personal Loan application without any hiccups.
Documentation-Specific Reasons for Personal Loan Rejection
Lenders typically reject Personal Loan applications due to reasons like low credit scores, employment instability, and low income. Document-related issues are also among the top reasons for Personal Loan rejection. Here’s why lenders may deny your loan request:
- You did not provide all the required documents
The loan application form clearly states that borrowers must provide proof of all the documents requested. If, as the borrower, you fail to provide even one of the required documents, lenders may state incomplete documents as the reason for rejecting your loan. Thus, you must ensure you check the detailed list of documents requested by the lenders. - You did not fill the loan application form correctly
Lenders may deny you the Personal Loan if they believe you have withheld information in the loan application form. Remember that lenders verify your loan application, and they usually have access to your credit repayment behaviour. Thus, there is no point in falsifying or withholding information as this can be grounds for loan rejection. - You did not provide original documents
Providing fake documents is not only a just cause for lenders to reject your Personal Loan application; it can also be the reason lenders may blacklist you. It is better to provide original instead of fake documents, especially those pertaining to your income, employment, credit scores, income tax returns, etc. If the lender finds that you have falsified documents, it can have long-term repercussions on your credit acquiring abilities. - Documents Required
Lenders typically ask for scanned copies of the following documents with your Personal Loan application. - Duly-filled loan application form
- A copy of your PAN Card
- A copy of your ID proof document from a detailed list of government-approved and accepted documents. Commonly accepted documents include Aadhaar card, passport, driver’s license, voter ID card, or employment ID card.
- A copy of your address proof document from a detailed list of government-approved and accepted documents. Commonly accepted documents include Aadhaar card, passport, driver’s license, voter ID card, rental agreement, or latest utility bills such as electricity, telephone, gas, water, etc.
- Income proof documents such as bank statements and salary slip documents of the last 3-6 months, as necessary.
- Filed income tax returns for the last 2-3 years (on a case-to-case basis)
How to ensure your documentation is accurate
If you do not want your loan to be rejected due to incomplete documents or any other reason, here are some things you should do:
- Speak to your lender for assistance with filling out the loan application form if you have any doubts.
- Do not leave any field incomplete in the loan application form.
- Provide your PAN and Aadhaar card documents. Read more about PAN card and KYC documents for Personal Loan application here.
- Provide proper details of your income and employment status without fudging the details.
- Do not provide fake documents under any circumstances.
Personal Loan Application with HDFC Bank
HDFC Bank understands that you may need a Personal Loan for various reasons. This is why we do not place any end-use restrictions on the loan funds. You can avail of loans of up to ₹40 lakh with paperless documentation, and repay EMIs in pocket-friendly instalments over tenures lasting up to five years. Just ensure that you do not provide incomplete documents, and your loan application process should be smooth.
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*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Personal Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.