Documents You Need to Apply for a Personal Loan

Applying for a personal loan can be somewhat nerve-wracking. Taking some steps to prepare to apply and learning more about the application process can take the stress out of the process. When you know what to expect and you work with a reputable lender, you can feel confident about a favorable outcome. Take a minute to familiarize yourself with some of the most frequently requested information that lenders ask applicants to provide to have everything you need to complete a personal loan application. 
 

Personal Identification 

Virtually every lender is going to ask you to provide some form of government-issued photo ID such as a driver's license or passport, and it must be active. Some lenders may request two forms of ID, but the second ID that you provide may not necessarily have to be a photo ID and could be a birth certificate. 
 

Income Verification 

When you apply for a personal loan, you'll probably be required to show proof of your income. Lenders need to verify your income because the amount of money you earn weighs heavily on a lender's assessment of your ability to pay back a loan. 
 

There are several different ways that you can prove your income. You may be able to show a lender your tax documents reflecting your income. Alternatively, a lender may ask you to provide a certain number of pay stubs from your employer. The number of pay stubs required will vary among lenders, but you should expect that providing one paystub won't be sufficient. A lender may ask that you have your employer complete an employment verification form. This type of document must be completed by your supervisor or a representative from your employer's human resources department. It must include your pay rate, and it may ask your employer to indicate how long you've been working for the company. The person completing the form will have to include his or her name, job title, and contact information. 
 

Proof of Address 

A lender will want to see evidence that you live at the address that you’ve listed on your application. Here are some examples of documentation to prove your address. 

•         Deed to your home 

•         Lease agreement for your apartment 

•         Insurance policy for your home or apartment 

•         Utility bills such as an electric or water bill sent to your home   address 
   

When you apply for a personal loan and need to provide supporting documentation, you should get the information together as quickly as possible to avoid any unnecessary delays in processing your application. Try to have everything that you know you’ll probably need at the ready and return any forms that a lender may request as soon as you can.