The name itself represents the key feature of this loan. Obviously Personal Loans are taken

to meet unexpected or planned personal needs and expenses. As we all know, it will be a real

solace at times. For example, suppose that you don't have any other option to raise fund at

the moment, then a personal loan will be a solid mean if you have the Personal Loan


In addition to taking a new loan, there are possibilities to transfer your existing personal

loan. But ensure the decision is wise and the new bank you approach has more beneficial

schemes. For instance the rate of interest. Surely there is no point in transferring your

personal loan to another bank unless they have a lower rate of interest compared to the

existing bank.

Another key factor to consider is the Personal Loan disbursement process.

Definitely the process must be transparent and smooth, so that the applicant can experience a

pleasant financial transaction.

 Documents needed

Depending on the policies, every bank has defined personal loan eligibility

criteria. However, to verify whether a particular applicant meets them or not there are no

ways other than scrutinising certain documents.

1. Identification Proof

This is for the bank to confirm the identity of the applicant. You may be asked to submit

one or two of them.

The acceptable documents include PAN Card, Aadhar Card, Election ID, Passport,

Driving License, Photo Identity Card issued by the employer.

2. Residence Proof

In addition to the documents mentioned above Landline Telephone Bill and Electricity

Bill will be accepted as Residence Proof.

For the disbursement of Personal Loan some other documents will also be required. The

papers we already discussed are identification proofs. Meanwhile some other documents are

needed as proof of financial stability. And its type is decided based on one's profession.

  • For the salaried

    Salary slips

    Bank Account Statement

    IT Return copies

    Commitment of employer for the payment of EMI, if feasible.
  • Businessmen/Professional/Non-Salaried

    IT Returns and other supporting documents

    Company License

    Copy of Tax Registration

Serving a customer better is the primary duty of the bank and this eventually leads to a

healthy relationship and a win-win situation.

Now we went through the various documents required prior to sanctioning a Personal

Loan. Once they are submitted the bank will verify each one to decide on the personal loan

eligibility criteria of the applicant. Indeed, the amount to be sanctioned too depends on this


A reputed Bank normally takes a short time to process and sanctions the eligible loan amount

at the earliest.

Generally the application is processed within 24 hours. But sometimes it may go up to one


Once sanctioned, the applicant will be intimated the same. Remember, this is just to inform

that he or she has met the personal loan eligibility criteria, and the said loan will be

disbursed. However the exact amount of Personal Loan will be determined at the time of


A renowned bank will naturally be keen to disburse Personal Loan shortly after receiving the

application and related documents.

So ensure you approach the right bank.