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

Mint

4 days ago

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.
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.
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.
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).
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. 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
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.
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