Personal Loan

What is Considered as Proof of Income for a Personal Loan in India?


Any time could be a bad time financially. A personal loan can quickly make up for any shortfall in cash. If you are over 18 and have a steady source of income, you can apply for a personal loan in India. All banks and other places that lend money in India offer these loans.

Personal loans are unsecured and don’t require collateral. So the borrower had to meet the criteria the lender set to get one. The relevant documents are used to ensure that the eligibility requirements have been met. Let’s look at the documents you need to get a personal loan.

Documents needed to get a personal loan

There are four main types of paperwork that are needed for a personal loan. A person who wants a personal loan must meet certain documentation requirements for each category.

Income evidence

The amount of the loan depends on how much money the applicant has. So, if you want a personal loan now, you must show proof of your income. The paperwork needed for a personal loan also depends on what the applicant does for a living. So, pensioners, self-employed people, and people working for a company must all send their proof of income.

Age proof

The length of the loan is based on how old the person is. Age proof is the paperwork that says the applicant is the age.


Identification proof is a group of official documents. They provide proof of the applicant’s identity. The loan company checks the person’s identity to lower the chance that they won’t pay back the loan.

Proof of Address

Before giving a loan, the lender needs to know where the applicant lives. As a result, many documents can be used as proof of address. As part of the paperwork for a personal loan, the applicant can show proof of their address.

For salaried employees

Salaried people can apply for personal loans by sending in the following paperwork:

  • A photo and a filled-out application form
  • Documents like an Aadhaar card, PAN card, or voter ID are used to prove identity.
  • A passport and bills for services
  • Phone, power, gas, water, and a driver’s licence are still good.
  • Birth certificates, high school and college diplomas, and voter ID cards can be used to prove someone’s age.
  • For proof of income, you can use ITR forms, Form 16, the last six months of pay stubs, and records from your bank.

For Self-Employed Individuals

Self-employed people can apply for a personal loan by giving the following documents:

  • A photo and a filled-out application form
  • Identification documents like an Aadhaar card, PAN card, voter ID card, or passport, or documents that prove your age, like school or college diplomas, birth certificates, and voter ID cards.
  • Address proof, like a passport or bills for phone, power, gas, water, and utilities, and a valid driver’s licence.
  • Proof of income, like ITR forms, Form 16s, pay stubs every six months, and bank records.
  • As proof that they are a legal business, they have a partnership agreement, a certificate of practise, a registration certificate, and a business enterprise PAN card.

For NRI Applicants

Even Non-Resident Indians (NRIs) can apply for a personal loan in India as long as they have the right paperwork:

  • A photo and a complete application form
  • Documents like a passport, Aadhar card, PAN card, and Voter ID are used to prove identity.
  • Documents that prove your address, such as a passport, phone, electric, gas, and water bills, and a driver’s licence.
  • Proof of age, such as leaving certificates of high school and college
  • Birth certificates, documents, and voter ID cards
  • Proof of income, like ITR forms, Form 16, pay stubs from the last six months, and bank records from the last year for both Indian and foreign bank accounts.
  • Passport and visa copy
  • If the NRI candidate is in the country when they apply for the loan, they must also give the local authorities a power of attorney.
  • You must send in all paperwork related to your salary.

For Pensioners

For a retired person to apply for a personal loan, you must send in the following loan paperwork:

  • A photo and a filled-out application form
  • Documents like a passport, PAN card, voter ID card, or Aadhar card are used to prove who you are.
  • A passport, a recent utility bill (for electricity, gas, water, or phone service), and a recent driver’s licence are all good ways to prove your address.
  • Documents that show someone’s age, like a birth certificate, a high school or college diploma, or a voter ID card.
  • Income proof from the last two years, like ITR forms or Form 16s, the last six months’ worth of pay stubs, and bank statements.

How can a person get a personal loan if they don’t have any paperwork?

If you have a good relationship with the bank, you have a better chance of getting a personal loan without paperwork. When you use the same bank for all your financial needs, it’s easier for the bank to determine your creditworthiness. So it’s best to keep your credit score high.

Good experiences with lenders

If you ever need a no-documentation personal loan, it will help if your bank or lender trusts you. You can get all your money from the same bank since they will know if you are eligible for loans and if you can pay them back. It’s also helpful to have an account with the bank in question.

The amount of debt compared to income

If you want to show that you are financially stable, your debt-to-income ratio should be less than 50%. This gives the lender confidence that you will be able to pay back the loan. This will help you get a loan with no paperwork.

A credit score is important

Since banks usually see a high credit score as a sign that you will pay back the loan on time and in full, you may need one to get a loan without documents. Some of the most important things to do to get a good credit score are to pay your bills, credit cards and EMI bills on time.


Personal loans are unsecured because you don’t need anything to back them up. Most personal loans can be paid back between one and five years. The lenders offer different ways to pay back the loan based on the borrower’s credit history. Each month, loan payments are made with EMIs, postdated checks, or by telling your bank to take out the EMI through an electronic funds transfer (ECS).

Compared to other loans, personal loans demand less paperwork.  You can learn more about personal loans by visiting Piramal Finance in detail.