Common Requirements to Prepare for Your Personal Loan Application

When you apply for a personal loan, it is best to have all the application requirements on hand. Lacking a thing or two from the required documents may cause a delay in your application or may even hinder you from applying for the loan, to begin with. Listed below are the most common requirements that your lender may ask from you. Take a look!

Before that, see for more!

Valid Proof of Identification

For your lender to verify your identity, you will need to provide them with legitimate documents or IDs. Lenders usually require at least two IDs from you. Your proof of identification is required for them to avoid identity theft or fraud. The following documents are some valid documents for proof of identification:

  • Birth Certificate
  • Passport
  • State-Issued Driver’s License/ ID cards
  • Social Security Card
  • Other government-issued IDs

Proof of Residence

Your proof of residence will help your lender verify your lifestyle. It will also give them confidence when they know the whereabouts of their clients. You may provide the following documents to your lender as your proof of residence:

  • Lease or Rental Settlement
  • Utility bill(s)
  • Copy of Insurance policy for your house or car
  • Other government-issued documents citing your residential address

Proof of Income or Employment

Lenders are taking risks every time they lend money to a client. They need to be well-aware of your financial capacity. Giving them documents to prove that you are financially stable and capable of paying out the debt that you’re about to take on is a must.

If you are self-employed then you can provide them with the following documents:

  • Income Tax Return
  • Bank Statement(s)
  • IRS Form 1099-S
  • Business Records

If you are employed, then you can provide them with the following documents:

  • Paystubs
  • Income Tax Return
  • Bank Statement(s)
  • IRS Form 1099-S and W-2s
  • Employer’s Contact Details

Application Form

Each lender has an application form customized for their company. If you are applying with an online lender, you will fill up the application form electronically. For physical lenders, you may search online to check if your lender provides electronic application forms. If not, you may go to them personally to initiate your loan application process by filling up the application form. It would be best to have all the other requirements with you at this point. Having the requirements stated above on hand may make your application process quick and convenient.

Each lender may have a different set of requirements, so do inquire with your lender just in case they have a requirement that is not specified in this article. It is best to have these documents prepared before you proceed with the application process to avoid delays or any type of issue.

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