When it comes to applying for a Personal Loan, one of the key factors that lenders consider is the documentation. Whether you are a salaried employee or a self-employed professional, submitting the right documents ensures a faster and smoother loan approval process. While the basic KYC (Know Your Customer) documents remain the same, the financial documents required may differ based on your employment type.

With digital-first financial partners like L&T Finance, the process has become quick, simple and mostly paperless. You can also use tools like a Personal Loan calculator to estimate your EMI in advance and plan your repayment smartly.

Why Documents Matter in Personal Loan Applications

Lenders use documents to verify your identity, assess your financial health, and determine your loan eligibility. Submitting the correct document for a Personal Loan reduces the risk of delays or rejections. Whether you are salaried or self-employed, having a clear checklist helps ensure you are fully prepared when applying.

KYC Documents: Common for All Applicants

These are the basic documents that are mandatory for both salaried and self-employed applicants:

KYC documents must be valid at the time of submission. For example, the Driving Licence and Passport should not be expired.

Financial Documents for Salaried Applicants

Here’s what a salaried borrower needs to submit:

1. Salary Slips
    
   • Last 1 to 3 months’ salary slips
      
   • Helps the lender assess your income and EMI affordability
2. Bank Statement
   • Bank account statement of the last 3 to 6 months
      
   • Lenders analyse your spending behaviour, savings and existing EMIs
3. Form 16 or Income Tax Return (if requested)
   • Some lenders may ask for Form 16 or ITR to verify your total income
      
4. Proof of Employment
    
   • Appointment letter or work experience proof (if required)

Note: These documents are generic. You must always visit the lender’s website to know the exact list of documents required for salaried employees before you apply for Personal Loan.

Financial Documents for Self-Employed Applicants

If you are a business owner, freelancer or professional, you will need to share documents that reflect your income consistency and business stability.

1. Income Tax Returns (ITRs)
    
   • ITR of the last 2 to 3 years
      
   • Shows the trend and consistency of income
      
2. Bank Statements
    
   • Last 6 to 12 months of the main business account
      
   • Helps calculate average monthly income
      
3.  Business Documents
    
   • GST registration
      
   • Business registration certificate
      
   • Profit and loss account, balance sheet (audited if applicable)
      
   • Proof of business continuity or office ownership

Note: These documents are generic. You must always visit the lender’s website to know the exact list of documents required for salaried employees before you apply for a Personal Loan.

Use a Personal Loan Calculator for Better Planning

A Personal Loan EMI calculator is a free tool that lets you estimate your monthly EMI. You can input the desired loan amount, interest rate, and tenure to understand how much you will repay each month. It helps to compare different tenure options or assess affordability before applying.

L&T Finance offers a Personal Loan calculator on their website that’s easy to use, helping you make informed decisions.

Conclusion

Whether you are salaried or self-employed, having the right documents for Personal Loan ready can significantly speed up your application process. Lenders like L&T Finance simplify this process further by enabling digital uploads and minimal paperwork.

Before applying, use a Personal Loan calculator to estimate your EMIs and choose a repayment plan that fits your budget. Always check the official website of your lender for the exact list of required documents and eligibility criteria.

Disclaimer: The above blog has been written by Viaan Khurana. TheUnitedIndian holds no liability for the information shared in this blog post. Readers should use this information at their own discretion.