What Documentation is Needed for a Personal Loan?

The documentation required to take out personal loans varies from lender to lender. For so-called no credit check or “bad credit” personal loans, you don't have to provide collateral or even a credit report to qualify.

However, if you're looking for a large lump sum personal loan, like a home mortgage loan, you generally need to go through a long and involved process to ensure the bank or other lending institution of your ability to meet your financial obligations.

Let's take a look at both ends of the spectrum. On the “small, no credit check” side of the scale, you generally need to provide just a driver's license, a proof of employment, address information, and a post-dated check in the amount of the loan plus the interest. Some companies may not even require proof of employment, so-called faxless online brokers can get you money within just minutes to hours. Others are slightly more picky, and you can shop both online and local loan vendors for the best terms and conditions.

On the “large, long term” side of the spectrum, you'll need to present all the aforementioned information as well as detailed specs on the home/large purchase you are making, collateral (in the case of certain secured loan ventures), proof of your spouse's income and credit capacities, and other financial records. If you have a history of credit problems, you won't necessarily be denied large-scale personal loans, but you may have to pay extra interest rate charges or endure other less than favorable terms.

If you are searching for hybrid loans, such as combined business and personal loans, you may have to provide additional information about your company to access the necessary funds. This information can include everything from permits and licenses required for a project to proof of bonding and insurance.

Moreover, you may have to demonstrate fiscal responsibility over a period of time before a bank or institution may trust you with your combination business and personal loans. Whatever your requirements, get all of your paperwork in order before going forward with the application process. It's possible to have a streamlined, easy time getting the money you need, provided you do the legwork upfront.