Instant personal loan up to ₹5 lakh: Documents you must have for quick approval | Mint

If you are a borrower seeking an instant personal loan of up to ₹5 lakh then due to the technological advancements you can now enjoy faster and seamless approvals.

Still, these approvals are subject to you providing the essential documents and meeting the basic eligibility criteria as laid down by the lending institution. Several banks and NBFCs are now streamlining this process with minimal paperwork and quick digital disbursal.

What are personal loans?

Personal loans are unsecured credit provided by banks and other financial institutions to meet urgent needs such as medical bills, education, travel, or debt consolidation.

No collateral is required for personal loans and the disbursal of funds is quick if the required documents are provided. Furthermore, the decision of meeting eligibility is based on factors such as income, credit score, past payment history and documentation.

Why are documents important?

Lending institutions utilise documents to verify identity, income stability, authenticity of the loan applicant and the submitted application along with the repayment capacity of the borrower. Organised paperwork ensures compliance and helps in quicker approvals with improved loan terms.

Must have documents for quick approval

1. Salary slips & bank statements: Lenders typically ask for the last 3–6 months of salary slips and bank statements. Axis Bank requires 3 months’ salary slips, statements, and Form 16. Kotak Mahindra and Bajaj Finserv follow similar norms.

2. KYC proof: Most banks accept PAN and Aadhaar as standard ID and address proof. Alternatives like passport, voter ID, or driving licence are also valid, as per lenders like Bajaj Finserv.

3. Employment & address proof: Salaried applicants must submit employee ID or appointment letter. Address proof includes utility bills (last 3 months), lease agreement, or passport, as per Axis Bank.

4. Digital KYC:A filled loan form, passport-size photo, and digital/video KYC are mandatory. Axis Bank and IndusInd Bank enable paperless onboarding with instant verification.

5. Submit ITRs: Self-employed borrowers must provide 1–2 years’ ITRs or audited financials, plus bank statements to prove business stability (Bajaj Finserv, Kotak).

Fast track approval

Once all documents are ready, lending institutions such as Bajaj Finserv provide approval of a loan in less than five minutes along with disbursal of the loan amount on the same day. On similar lines banks such as HDFC Bank, Axis Bank, ICICI Bank among others also disburse funds within hours of the online application.

Document checklist

• Last 3 to 6 months’ bank statements.
• Salary slips (3 months) + Form 16.
• PAN + Aadhaar/passport/voter ID.
• Employment proof.
• Address proof (utility bill/lease/passport).
• Application form, photo & digital KYC

Why does it matter?

Accurate documentation speeds up the processing of loan applications. Those with high credit scores i.e., scores of over 730+ along with steady income benefit from lower interest rates and faster processing of personal loans.

That is why it is important to keep your credit profile clean, credit score high and all your documents properly arranged so that loans can be availed within a short period of time when needed.

Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.