What Documents Are Required for a Loan?

Before applying for any loan, one common question comes up: what documents are required for a loan in India? Whether you are applying for a personal loan, home loan, business loan, or loan against property, lenders require certain documents to verify your identity, income, and repayment capacity.

In 2026, thanks to digital lending and RBI guidelines, documentation has become simpler and largely paperless. At Saarathi.ai, we have observed that over 70 percent of salaried borrowers can complete their application using just Aadhaar, PAN, and bank statements through secure digital verification.

This guide explains the complete list of loan documents, categorized by loan type and employment profile, so you can prepare in advance and avoid delays.

Why Do Lenders Ask for Documents?

Banks and NBFCs follow compliance and KYC norms prescribed by the Reserve Bank of India. Documents help lenders:

• Verify your identity and address

• Assess your income stability

• Evaluate repayment capacity

• Prevent fraud and money laundering

• Comply with regulatory standards

Incomplete documentation is one of the biggest reasons for loan processing delays.

At Saarathi.ai, our AI checks your profile upfront and shows exactly which documents are needed before submission.

Basic Documents Required for Any Loan

These documents are common across most loan types.

1. Identity Proof

Any one of the following:

• Aadhaar Card

• PAN Card

• Passport

• Driving License

• Voter ID

PAN is mandatory for most loans above Rs 50,000.

2. Address Proof

• Aadhaar Card

• Utility bill not older than 3 months

• Passport

• Rent agreement

3. Income Proof

For salaried individuals:

• Last 3 months salary slips

• Last 6 months bank statements

• Form 16 or latest ITR

For self employed individuals:

• Last 2 years ITR

• Profit and loss statement

• Balance sheet

• GST returns if applicable

4. Photographs

Recent passport size photos if physical processing is required.

With Saarathi.ai’s paperless journey, most of these documents can be uploaded digitally or verified through secure APIs.

For Salaried Applicants

• PAN Card

• Aadhaar Card

• Salary slips last 3 months

• Bank statements last 6 months

• Employment proof or company ID

For Self Employed Applicants

• PAN Card

• Aadhaar Card

• 2 years ITR

• Business registration proof

• Bank statements 6-12 months

At Saarathi.ai, we have seen faster approvals for applicants who maintain:

• Credit score above 750

• Clear salary credits in bank statements

• No cheque bounces

You can compare personal loan offers on Saarathi.ai and see lender specific document requirements instantly.

Documents Required for Home Loan

Home loans involve higher amounts, so documentation is more detailed.

Income Documents

• Salary slips or ITR

• Bank statements

• Employment continuity proof

Property Documents

• Sale agreement

• Title deed

• Approved building plan

• Property tax receipts

• NOC from builder if applicable

For under construction properties, additional builder documents are required.

According to industry data reported by CRISIL, housing finance approvals are faster when property documentation is pre verified and legally clear.

If you apply through Saarathi.ai, our team coordinates with lenders and builders to simplify documentation checks.

Documents Required for Business Loan

Business loans focus on cash flow and business stability.

Common Documents

• Business registration certificate

• GST registration

• 2-3 years ITR

• Bank statements 12 months

• Financial statements

• KYC documents

For MSMEs, lenders may also request:

• Udyam registration

• Project report

• Existing loan details

Digital verification through bank statement analysis tools speeds up processing significantly.

Documents Required for Loan Against Property

Since this is a secured loan, property evaluation is critical.

Required Documents

• Property ownership documents

• Encumbrance certificate

• Property valuation report

• KYC documents

• Income proof

Loan amount usually depends on 50-65 percent of property value.

As covered by The Economic Times, secured loans often offer lower interest rates due to collateral backing.

Additional Documents Sometimes Required

Depending on your profile, lenders may ask for:

• Existing loan statements

• Credit card statements

• Co applicant documents

• Marriage certificate for co applicants

• Guarantor documents

If you are switching jobs, lenders may request an offer letter or relieving letter.

How Digital Lending Has Reduced Documentation

In 2026, digital lending platforms like Saarathi.ai use:

• Aadhaar based eKYC

• Account aggregator framework

• AI bank statement analysis

• Digital income verification

This reduces manual paperwork and speeds approvals.

With Saarathi.ai, you can:

• Upload documents once

• Share securely with multiple lenders

• Track your application in Saarathi Bazaar dashboard

• Ask document related questions via Saarathi AI expert

This ensures transparency and faster decision making.

Common Mistakes to Avoid

Many applicants face delays due to small errors. Avoid these:

• Uploading blurry documents

• Mismatch between PAN and Aadhaar name

• Submitting outdated address proof

• Missing bank statement pages

• Concealing existing EMIs

Always ensure all details are consistent across documents.

Step by Step Document Submission on Saarathi.ai

1. Select loan type

2. Enter income details

3. Upload KYC documents

4. Upload income documents

5. Review AI checklist

6. Submit application

7. Track approval status in Saarathi Bazaar

Our AI verifies documents instantly and flags issues before they cause rejection.

Quick Reference Table

Preparing documents in advance can reduce processing time by 2-5 days.

FAQs

1. Can I get a loan without income proof?

It is difficult for unsecured loans. Some secured loans may allow flexibility.

2. Is Aadhaar mandatory for loan applications?

Most lenders require Aadhaar for KYC, especially in digital journeys.

3. How many months of bank statements are required?

Typically 6 months for personal loans and 12 months for business loans.

4. Do I need original documents?

For digital applications, scanned copies are sufficient. Originals may be verified later.

5. Can I apply for a loan with only a PAN card?

No. You also need address and income proof.

6. Does Saarathi.ai store my documents securely?

Yes. Documents are encrypted and shared only with selected lenders after your consent.

Conclusion

Understanding the documents required for a loan helps you avoid delays and improve approval chances.

Key takeaways:

• KYC documents are mandatory for all loans

• Income proof determines eligibility and loan amount

• Property papers are required for secured loans

• Digital platforms reduce paperwork significantly

• Accurate and complete documents speed up approval

Instead of visiting multiple branches, upload your documents once and discover personalized loan options on Saarathi.ai today. Enjoy a paperless process, AI driven recommendations, and full transparency from application to approval.