When you’re ready to get a personal loan, it’s essential to gather all the documents your lender will need. Not only does this ensure that you make it through the application process without any problems, but it also gives you peace of mind in knowing everything is handled properly.
Proof of residence
Proof of residence. Be it a copy of your lease or a rental agreement, or perhaps one of the documents required when applying for a home mortgage loan. If you’ve bought a house, submit proof that you own it and have taken out a mortgage, or at least have all the proper paperwork in order to get one.
Two forms of identification
You’ll need two forms of identification to apply for a personal loan. These should include your driver’s license or passport and a federal or state identification card. If you’re active military, a military ID is also acceptable. Finally, if you have one, bring in your birth certificate as well. It’s not required but will help speed up the application process.
Financial advisors like SoFi provide same-day funding, “No matter what you need a personal loan for—like paying down high-interest debt or making a major purchase—you’ll get what you need fast.”
Proof of income
Proof of income is one of the most important documents you must submit when applying for a personal loan. However, the lender needs to be convinced that you can pay off the amount borrowed on time, so it’s necessary to show them some proof that will make them feel confident about giving you credit.
The best way to submit proof of income is through tax returns or pay stubs. If you are self-employed or unemployed and do not have any source of regular income, then it would be better if you could provide your business plan as proof instead (if applicable). Students can also provide their enrollment letters as additional evidence that they have the means to support themselves while paying off their debts.
Letter of employment
Letter of employment. If you are employed, your employer should provide a letter stating your salary and benefits. The letter must be on the company’s letterhead, dated within the past 3 months, and signed by an officer or manager of the company.
Landlord references can be obtained from your existing bank or a credible source, such as your employer. Your landlord should be able to confirm how long you’ve lived at your address and whether you have any arrears on your rent payment history.
Your employment contract should also include details of the salary paid to you by the company, along with confirmation of how long you have been employed there and details of any bonuses or benefits included in your package.
Pay stub history
A pay stub is a document that shows how much you have earned in a specific time period. It might be for one week or for up to 12 months and is usually provided by your employer. The information on the pay stub will show what you earned in gross wages, taxes deducted from your paycheck, any contributions to a retirement plan (if available), and other deductions from your paycheck.
The above are the documents you need to apply for a personal loan. To get started, find out if your bank offers these loans and whether or not you qualify by filling out an online application.