In the current era, loan is sought out by a large number of people. Financial shortage is frequently happening and hence, loans have been offered by various banking institutions for different purposes. Be it vehicle loan or home loan or personal loan or credit card loan or mortgage loan, the approval process begins only if the demanded documents are readily available and submitted to the lenders. This article exclusively focuses on salaried employees who seek loans at varied times for multiple purposes. This article might direct such people to get their loan instantly approved and educate on the process involved.
Why do you need documents?
Most of you would ask, “Why do we need to present so many documents?”. The reason is rather simple. For the lender to borrow a particular amount, the credentials of the borrower and the current financial status of the borrower explains to the lender and influences his decision . If someone is financially weak and there are no sources to repay as per the documents, would you lend money? No! None would lend. This process is solely to ensure safety for the lender as well as the borrower.
All the private and public banks, by default, demand the following documents from every borrower. In case of salaried employees, the loan approval happens to be quicker if the documents are ready and the lender also gains confidence on the borrower.
The varied sources of income obtained by the borrower need to be submitted. It might include salary slip, rental income and tax returns, if any. Documents for the recent 2 years need to be prepared.
Movable and immovable asset documents
This is mandatory! Bank statement (6 months), stocks (if any), insurance policies (if any) and profit and loss statement are very much required for the lender to evaluate your current financial status and capacity of repayment in the future, if the loan is approved.
Other petty documents
The lending parties would often require some or all of the following:
* Driving license / ration card / voter ID
* Trust deed
* Lease agreement
* Purchase contract
* Witness documents
These are to evaluate your reliability. In case the lender demands additional documentation, always try to respond quickly.
The loan application is indeed simple. Majority of the salaried employees might be aware of pay slip and tax slips.
What happens after you submit the documents? Will the loan be approved for sure? Yes! In this specific case, it is encouraged to go via authorized banking partner like Octopus Loan as they might list alternatives as well and ease the entire process. The overall advice in handling this situation would turn to be easier with the guidance of experienced professionals of Octopus Loan. These professionals can study your credit score and estimate the probability of loan approval well before you submit.
Getting a home loan approval is not difficult if these documents are ready! In addition to it, if you follow the assistance of people from Octopus Loan, it becomes much effective as they guide you in pre-, during and post- approval process so it can turn to be beneficial in multiple ways.