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Personal Loan Documents: What Is Required To Secure A Loan?

Hanna Kielar6-Minute Read
UPDATED: July 18, 2022


Ready to apply for a personal loan? To get approved for a loan, you’ll first have to prove to your lender that you’re reliable and prepared to take on this new fiscal responsibility.

To do so, you’ll need to assemble the various types of personal and financial documentation required by your loan lender. Luckily, most lenders request similar information during the application process. Let’s take a look at the types of personal loan documents you’ll need to apply for this type of loan.

Documents Required For A Personal Loan

When you apply for a personal loan, you’ll most likely be asked to provide a series of official documents to the lender. Use the following list as a guide to preparing your application, but don’t forget to review your lender’s specific loan documents for personal loan requirements.

1. Loan Application

Once you’ve settled on a lender for your personal loan, the next step is to review their loan application. Although every lender has a different application, they typically require you to provide information such as personal details, the desired loan amount and the intended purpose of the loan.

Many loan applications are easily accessible through the lender’s website, but some traditional lending institutions, such as banks or credit unions, may offer in-person applications.

2. Proof Of Income

Since most personal loans are unsecured and don’t require the borrower to put down collateral, they’re riskier for lenders. To check whether you have the financial ability to repay your loan, the lender will most likely request income verification.

Be prepared to certify your income with the following documents:

  • Pay stubs
  • Bank statements
  • Tax returns
  • Employer name and contact information

If you’re self-employed and applying for a personal loan, you’ll need to submit slightly different information. Self-employed applicants can show proof of income using the following documents:

  • Profit and loss statements
  • Social Security benefits statements
  • Court-ordered agreements
  • Income tax returns

3. Proof Of Identity

Most American lenders require you to submit at least two forms of government-issued identification as part of your personal loan application. This requirement ensures that you’re a U.S. permanent resident or citizen.

Plan to submit at least two of the following documents:

  • State-issued ID
  • Driver’s license
  • Birth certificate
  • Military ID
  • Social Security card
  • Certificate of citizenship
  • Passport

4. Proof Of Address

Similar to proof of identity, lenders need to verify the stability of your living situation. To confirm your proof of address, prepare to submit the following documents:

  • Voter registration card
  • Recent utility or water bill
  • Lease or rental agreement
  • Proof of home or vehicle insurance

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What Is A No Documentation Personal Loan?

An alternate type of personal loan is a no documentation personal loan, which is a high-risk loan that is provided without reviewing the applicant’s financial information.

Also known as no income verification loans, these secured or unsecured loan products are only offered by select loan lenders that are willing to take on risky investments. Due to the uncertain nature of this type of loan, lenders typically charge higher fees and higher interest rates to offset the risk.

Other Ways To Prepare To Apply For A Personal Loan

While organizing your personal loan documents is key, there are other actions to check off your pre-application to-do list. Before hitting “send” on your loan application, be sure to consider the following ways to get a personal loan.

Double Check Your Credit Report

It’s important to check your credit report often, but it’s extra critical to verify your score prior to submitting a loan application. When it comes to personal loans, applicants with higher credit scores are more likely to receive lower interest rates and more favorable loan terms.

Double-check your credit report to ensure that it’s accurate and up-to-date. If you spot any inaccuracies in your report, be sure to correct them before applying for a loan.

Lower Your Debt-To-Income Ratio

Your debt-to-income ratio (DTI) is the percentage of your monthly income that’s used to pay down existing debt. Loan lenders examine your DTI to determine your current level of debt and how it could affect your ability to repay a new loan. If your DTI is above 36%, you may have difficulty securing a loan.

With that in mind, loan applicants should ensure that their DTI is as low as possible when applying for a personal loan. If your current DTI is higher than the recommended percentage, it may be advisable to pay off more of your debt before submitting a loan application.

Prequalify For A Personal Loan

If you want to review your payment estimates before committing to a loan lender, consider prequalifying for a personal loan. Prequalification allows you to preview the loan terms and rates that the lender is planning to give you, without affecting your credit score.

During the prequalifying process, the lender will evaluate your personal information and perform a soft credit check to determine your eligibility. This is a helpful step to take prior to submitting a loan application to ensure that your new loan fits your budget and needs.

Final Thoughts: Prepare Your Loan Documents Carefully

Personal loans can be used to fund almost anything from a kitchen renovation to debt consolidation, but no matter how you plan to use the money, you’ll have to prepare a complete personal loan application. To put your best foot forward, be sure to assemble the required loan documents and provide all of the information requested by your loan lender.

Ready to apply for a personal loan? Apply today with Rocket Loans®.

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Hanna Kielar

Hanna Kielar is a Section Editor for Rocket Auto℠, RocketHQ℠, and Rocket Loans® with a focus on personal finance, automotive, and personal loans. She has a B.A. in Professional Writing from Michigan State University.