There are several types of mandatory information for a loan application. These documents are generally a combination of a personal financial statement, utility bills, rental agreement, or mortgage statement. The lender may also ask for additional information such as cosigner information and purpose of loan. The purpose of these documents is to confirm the identity of the applicant. The lender may also contact a third party to validate your employment and income information. The information you provide may be checked against government records.
Other mandatory information may be required from the borrower, but most lenders will want to see business and personal income tax returns. The purpose of the loan must be clear and supported by appropriate documentation. You will need to submit copies of your personal and business income tax returns, and a signed copy of each. In addition, you may have to submit a business plan if the loan is for a start-up business or a long-term loan.
Lenders may also want to see your employer identification number. The lender may also want to see some of your business’s financial documents to confirm ownership and affiliations. Be sure to keep your business license and corporate seal with you. Many lenders require you to show proof of a business’ checking account. This can help them assess your business’s financial health. Further, the lender may require a minimum credit score to approve your loan.
While the application forms for personal loans vary from lender to lender, most require you to submit an application online. Credit unions and traditional banks may require you to submit an application in person. The initial loan application typically asks for basic personal and business information, including your name and address, your desired loan amount, and your purpose for obtaining the loan. Some lenders may also require additional documents, such as bank statements or official ID. If you are self-employed, you may need to submit your tax returns as well.
The documents you must submit for a personal loan include your income, tax returns, and bank statements. While most lenders do not require collateral for a personal loan, you should read the specific loan documents to make sure you understand what information they need to assess your application. Providing comprehensive financial documentation will help the lender determine whether you are a good risk for lending them money. Additionally, a lender may ask for additional documents including tax returns and rental history.
If you can’t afford the loan, you may want to consider hiring a cosigner. A cosigner is someone you trust with a high credit score. A cosigner may be a friend or family member who can be trusted to make the payments if the borrower cannot. You will also likely need to provide a cosigner’s name, income, and other documents. The cosigner will usually be required to provide the same documents as you during the loan application process.