Loan Singh vs Banks: Personal Loan Documentation

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Introduction

A lot is being spoken and done about digitalization in India. From net-banking to the BHIM app, every financial product will henceforth be developed and marketed as a tool of Convenience, Time Saving and Hassle-Free. Banks are currently in the process of turning their traditional offline methods into digital, whereas Loan Singh – a Fintech company based in Goa, has already shook India with a robust and fully digital lending platform.

Loan Singh’s online process enables salaried individuals to avail a personal loan, sans the frustrating delay and paperwork. There are many misconceptions that cloud the minds of our borrowers. They ask about Loan Singh’s documentation process and the ease of application submission, compared to that of banks. Through this piece, we shed light on the documentation checklist that banks ask and why is a personal loan from Loan Singh, a better option amongst the two.

 

Personal loan – a quick solution

Personal loans are unsecured loans that are availed to meet financial needs. As it is an unsecured loan, it does not require any collateral. For a secured loan, the credit institution uses the collateral as a way to mitigate risk in case the borrower defaults. For a personal loan, however, the borrower’s credit worthiness determines if he/she can pay the loan EMIs regularly and, that too, without straining his/her daily living. Your credit bureau report acts like a gauge for Loan Singh. It shows how prompt you have been in your previous credit responsibilities and how trustworthy you are.

For salaried individuals, there cannot be a more worrisome scenario than not having funds to pay their bills. The salary comes in each month, but there is barely any left as month-end. The result is constant to-and-fro for borrowing money from family and friends. Going to a bank and embroiling in its tedious and never-ending process will cost you precious time. So, the best and fastest solution that remains is of a personal loan, but only via a digital lending platform such as Loan Singh. A personal loan is the best solution because of

No collateral – Having no collateral gives personal loan an advantage over secured loan. Even if you do not own any fixed assets, you can at least get funds from Loan Singh.

Multiple purposes – A personal loan can be availed for a number of purposes such as purchase of household appliances, electronic gadgets, holiday travel, home improvement, relocation of job, medical expenses, home renovation, marriage, etc.

 

Being Loan Singh eligible

Before you begin the quick and easy application process at Loan Singh, check the following eligibility criteria required for a personal loan.

Salaried

To avail a personal loan from Loan Singh, you need to be a salaried individual with a monthly salary of minimum Rs.15,000.

Credit Score

Loan Singh looks at your credit score, to evaluate your credit worthiness, before approving the loan. A credit worthy borrower is someone who has been prompt in his/her previous loan EMI payments, maintains a good credit utilization ratio, has been paying off his/her credit card bill on time and has never overspent over the credit card limit. If you have never availed of a loan before, you will have no credit history. In that case, you need to be salaried for at least 3 months to be eligible for a loan at Loan Singh. The lower your credit score, the lower your chances of being eligible for a personal loan.

Age

You need to be at least 21 years of age to be considered eligible for availing a personal loan with Loan Singh. As mentioned above, you must be of Indian nationality and salaried, as well.

Financial stability

You need to have a stable income – received each month. A good budget is advised to avoid times when you might find it hard to pay-off the loan EMIs.

 

Exhaustive bank documentation process

It is a lengthy process to apply for a personal loan at banks. Not just time consuming; there is the added baggage of photocopies, attestation and what not. Let’s look at the documents checklist.

Identity Proof

You need to establish your identity by providing any one of the following documents to the bank or financial institution

  • PAN (Permanent Account Number) Card
  • Election Voter’s Identity Card
  • Driver’s License
  • Passport
  • Ration Card
  • Telephone Bill (either landline or postpaid mobile phone bill)
  • Electricity Bill (in your name)
  • Life Insurance Premium Receipt
  • Employer Identity Card (Government issued)
  • Lease Deed/Title Deed (both pertaining to ownership of land)
  • Municipal Tax Receipt (for house)
  • Allotment Letter (if you work for state or Central Government)

Age Proof

To establish the correct age to the bank, you need to provide

  • Birth Certificate issued by a Civic Authority
  • Passport
  • Government Employee Identity Card
  • PAN (Permanent Account Number) Card
  • Election Voter’s Identity Card
  • Secondary School Leaving Certificate (Class 10th)
  • LIC Policy or Premium Receipt that indicates your age
  • Pension Payment Order or Family Pension Order
  • Defense Identity Card (authorized to dependents of soldiers in active duty or retired)

Residence Proof

Any of the following document acts as a residence proof

  • Aadhaar Card
  • Ration Card
  • Bills of Electricity
  • Water bill
  • Gas Connection Book
  • Telephone Bill (either landline or postpaid mobile phone bill)

Income Proof

A key aspect of getting a personal loan approved is the income you earn. For salaried individuals, the documents needed are

  • Latest salary slips from employer
  • Last 3 months bank statement from the salary account
  • Appointment letter or proof of continuity of employment
  • Form 16 for the last 2 years which indicate details about income and deductions
  • Acknowledgement receipt of Income Tax returns of the last 2 years

For individuals who are self-employed, the list consists of

  • Proof of Employment such as Trade License
  • Sales Tax Certificate
  • Financial Audit Report of the self-run enterprise or business, for the last 2 years, which indicates annual profits and losses
  • Bank statement reflecting transactions of the last 6 months

 

Documents required at Loan Singh

The documents needed at Loan Singh are

  • PAN Card
  • Latest 6 months bank statement PDF

Just 2 documents are required compared to the exhaustive list of documents needed at a bank.

 

Application process at Loan Singh

Not only is personal loan the best alternative for quick funds, Loan Singh’s quick and easy application process also helps you get the funds you need for any financial emergency. The process to get an easy and quick loan with Loan Singh is mentioned below:

Get Started Page – Select ‘PERSONAL LOAN’ from the dropdown and enter the loan amount with the desired repayment tenure.

Registration page – Add your contact number, personal email ID and corporate email ID

Social Authorization – Connect your Facebook, Google+ and LinkedIn profiles for discounted rates

Profile Page – Fill in your name, gender, father’s name, number of dependents and PAN Details. We use your PAN Card Number to check your Credit Score and as a KYC document.

Address Page – Choose your type of residence; mention your street address, city, state and pin code.

Job Profile Page – Mention your current designation, total work experience, company name, highest qualification, last institution attended and monthly salary.

Financials page – Upload your latest 6 months bank statement either from your computer, GMail account or net-banking account directly.

Auto Debit Page – Provide permissions to your bank name, account number and IFSC code so that Loan Singh can auto debit the EMI amount from your account every month. This way you don’t need to set reminders or miss out on any loan EMI repayments.

 

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