Personal loans can be one of the best options if you’re in immediate need of some money. They have short approval times, typically do not require collateral, are available as one lump sum, and you can find them at low interest rates depending on your credit score.

Applying for a personal loan is a reasonably straightforward process. However, to make it as smooth as possible, you must have all the necessary documents already prepared before you apply for one. Keep reading this article to learn about the documents you’ll require when applying for a personal loan. 

Proof of Identity

You must present two forms of identification to meet a lender’s eligibility criteria. You can offer various documents as proof of identity. Examples include:

  • State-issued ID card: A valid and unexpired ID card issued by the U.S. Department of State is mandatory to identify yourself and verify your citizenship.
  • Driver’s license: A valid driver’s license issued by a state in the U.S. serves as a widely accepted form of identification within the country. It includes your photograph, signature, date of birth and address.
  • Passport: A valid passport will serve as your identity document if you are a foreign national.
  • Permanent resident card (Green card): This card verifies the legal residency of non-citizens in the United States and serves as a valid proof of identity. It includes your photograph, signature, date of birth, and alien registration number.
  • Birth certificate: A certified birth certificate issued by a state or local government verifies your date and place of birth. It’s not always considered a primary form of ID but can serve as a secondary document for identity proof.
  • Military ID: Active military personnel can use their military ID card as a valid secondary proof of identity. It includes their photograph, rank, branch of service, and other relevant information.
ALSO READ  Learning How To Free Yourself of Debt

Proof of Income and Employment

If you’re applying for an unsecured personal loan, the lender will likely be more reluctant to approve it. Unsecured loans pose a greater risk to the lenders, so you have to present proof of income to convince them that you are trustworthy and capable of paying the money back on time. The documents you’ll require as proof of income:

  • Paystubs: A paystub document with your salary details is the most common proof of income. Individuals typically require their last three months’ pay stubs to verify their income and employment status.
  • Income tax returns (ITRs): The latest ITRs provide insight into your financial stability and tax compliance.
  • W-2 form: This is a document from your employer showing your total earnings and taxes withheld for the year.
  • 1099-MISC form: This is a form that businesses use to report income they have paid to non-employees, such as freelancers and independent contractors. 
  • Bank statements: The last six months’ statements showcasing regular income deposits and financial transactions are crucial.

Other than these documents, you will require your employment letter or contract verifying employment status, designation and salary details, employee I.D. card, and employer’s contact information as proof of employment.

Proof of Residence

Proofs of residence can help lenders determine the stability of your lifestyle. Typical documents you can use include:

  • Utility bills: You can use up to the past three months’ electricity, gas, or water bills. 
  • Rental agreement: You must provide a copy of your registered rental agreement.
  • Mortgage statement: Showing your name and property address
  • Proof of insurance on your home or vehicle: Homeowner’s or renter’s insurance with your name and address
  • Property tax receipt: You’ll need the latest property tax receipt
ALSO READ  Questions To Ask Before Applying For A Loan Amid COVID-19


Personal loans can be one of the most accessible ways to get money in times of emergency. They have short approval times, and you can make the application process even quicker by ensuring you already have all the necessary documents before applying.

You’ll typically require proof of identity, income, employment, and residence. Additional documents can include collateral information when applying for secured personal loans and co-signer information if you are applying with someone else. Preparing the required documents before applying will make the application process smoother and easier and ensure you can acquire the money you need as soon as possible.