Loan loan loan urgent
This query is : Resolved
29 July 2012
pls anyone let me know the formalities to b complied with for taking loan from a bank...
for how many years' itr is asked by the banks whethr 2 or 3...nd whethr der is any requirement to show tax in returns ..if yes den how mch for early sanction of personal loan..???
for how many years' itr is asked by the banks whethr 2 or 3...nd whethr der is any requirement to show tax in returns ..if yes den how mch for early sanction of personal loan..???
29 July 2012
The banking of our economy revolves are 2 BASIC functions. 1. Repayment Capacity and 2. Security offerred. All the material that is asked is in support of above. So at time even no papers are asked, sometimes even more tha 3 years ITR may be sought. Loan takers have no CHOICE.
29 July 2012
thnks for ur response nd shud i show some amt of tax in the return ao dt they get satisfied about my creditworthiness..
03 August 2024
When applying for a bank loan, several key factors and formalities need to be considered to ensure a smooth approval process. Here’s a comprehensive guide to help you:
### **1. **Documents and Formalities for Bank Loan:**
#### **A. **Personal Loan:**
1. **Application Form:**
- Complete the loan application form provided by the bank.
2. **Identity Proof:**
- Provide documents such as Aadhaar Card, Passport, Voter ID, or Driving License.
3. **Address Proof:**
- Submit documents like utility bills, rental agreements, or property documents.
4. **Income Proof:**
- For salaried individuals: Latest salary slips (usually for the last 3-6 months), Form 16, or Salary Certificate.
- For self-employed individuals: Income Tax Returns (ITR) for the last 2-3 years, Profit and Loss Statement, Balance Sheet, and Bank Statements.
5. **Bank Statements:**
- Submit bank statements for the last 6-12 months.
6. **Employment Details:**
- For salaried employees: Employment verification letter or recent pay stubs.
- For self-employed individuals: Business proof or registration documents.
7. **Credit Report:**
- Banks will typically check your credit score through a credit report. Ensure your credit history is clear.
8. **Photographs:**
- Recent passport-sized photographs may be required.
#### **B. **Specific to Personal Loan Applications:**
1. **Tax Returns:**
- Banks usually ask for ITRs for the last 2-3 years. This helps the bank assess your income stability and repayment capacity.
2. **Tax Payment:**
- While it is not mandatory to show a specific amount of tax paid, having filed and paid taxes regularly can positively impact your application. It indicates financial responsibility and stability.
### **2. **Tax Documentation:**
#### **A. **ITR Requirement:**
- **Standard Requirement:** Most banks ask for ITRs for the last 2-3 years. This varies depending on the loan amount and the bank's internal policies.
#### **B. **Tax Amount and Returns:**
- **Showing Tax Paid:** While there is no fixed requirement for showing a particular amount of tax paid, consistently filing returns and showing a reasonable income can strengthen your application.
- **Filing Accurate Returns:** Ensure that your ITR reflects your actual income and financial situation accurately. This builds trust with the bank.
### **3. **Creditworthiness:**
- **Credit Score:** A good credit score (generally above 750) is crucial for loan approval. It reflects your creditworthiness and repayment behavior.
- **Income Stability:** A stable income and a positive track record of loan repayments are important factors considered by banks.
- **Debt-to-Income Ratio:** Banks will assess your existing debt compared to your income. Maintaining a lower ratio is favorable.
### **4. **Additional Tips:**
1. **Maintain a Good Credit Score:**
- Pay your bills and existing loans on time. A higher credit score improves your chances of loan approval.
2. **Clear Existing Debts:**
- If you have outstanding loans or debts, consider clearing them before applying for a new loan.
3. **Provide Complete and Accurate Information:**
- Ensure all the information and documents provided are accurate and complete to avoid delays in loan processing.
4. **Consult with a Loan Officer:**
- Speak to a loan officer or bank representative to understand specific requirements for your loan type and improve your chances of approval.
### **Summary:**
When applying for a bank loan, you typically need to provide ITRs for the last 2-3 years, along with other documents like identity proof, address proof, and income proof. While showing tax paid in your returns is not a specific requirement, consistently filing accurate tax returns and maintaining a good credit score can significantly enhance your loan application. Ensure you meet all the documentation requirements and consult with your bank for any specific criteria they may have.
### **1. **Documents and Formalities for Bank Loan:**
#### **A. **Personal Loan:**
1. **Application Form:**
- Complete the loan application form provided by the bank.
2. **Identity Proof:**
- Provide documents such as Aadhaar Card, Passport, Voter ID, or Driving License.
3. **Address Proof:**
- Submit documents like utility bills, rental agreements, or property documents.
4. **Income Proof:**
- For salaried individuals: Latest salary slips (usually for the last 3-6 months), Form 16, or Salary Certificate.
- For self-employed individuals: Income Tax Returns (ITR) for the last 2-3 years, Profit and Loss Statement, Balance Sheet, and Bank Statements.
5. **Bank Statements:**
- Submit bank statements for the last 6-12 months.
6. **Employment Details:**
- For salaried employees: Employment verification letter or recent pay stubs.
- For self-employed individuals: Business proof or registration documents.
7. **Credit Report:**
- Banks will typically check your credit score through a credit report. Ensure your credit history is clear.
8. **Photographs:**
- Recent passport-sized photographs may be required.
#### **B. **Specific to Personal Loan Applications:**
1. **Tax Returns:**
- Banks usually ask for ITRs for the last 2-3 years. This helps the bank assess your income stability and repayment capacity.
2. **Tax Payment:**
- While it is not mandatory to show a specific amount of tax paid, having filed and paid taxes regularly can positively impact your application. It indicates financial responsibility and stability.
### **2. **Tax Documentation:**
#### **A. **ITR Requirement:**
- **Standard Requirement:** Most banks ask for ITRs for the last 2-3 years. This varies depending on the loan amount and the bank's internal policies.
#### **B. **Tax Amount and Returns:**
- **Showing Tax Paid:** While there is no fixed requirement for showing a particular amount of tax paid, consistently filing returns and showing a reasonable income can strengthen your application.
- **Filing Accurate Returns:** Ensure that your ITR reflects your actual income and financial situation accurately. This builds trust with the bank.
### **3. **Creditworthiness:**
- **Credit Score:** A good credit score (generally above 750) is crucial for loan approval. It reflects your creditworthiness and repayment behavior.
- **Income Stability:** A stable income and a positive track record of loan repayments are important factors considered by banks.
- **Debt-to-Income Ratio:** Banks will assess your existing debt compared to your income. Maintaining a lower ratio is favorable.
### **4. **Additional Tips:**
1. **Maintain a Good Credit Score:**
- Pay your bills and existing loans on time. A higher credit score improves your chances of loan approval.
2. **Clear Existing Debts:**
- If you have outstanding loans or debts, consider clearing them before applying for a new loan.
3. **Provide Complete and Accurate Information:**
- Ensure all the information and documents provided are accurate and complete to avoid delays in loan processing.
4. **Consult with a Loan Officer:**
- Speak to a loan officer or bank representative to understand specific requirements for your loan type and improve your chances of approval.
### **Summary:**
When applying for a bank loan, you typically need to provide ITRs for the last 2-3 years, along with other documents like identity proof, address proof, and income proof. While showing tax paid in your returns is not a specific requirement, consistently filing accurate tax returns and maintaining a good credit score can significantly enhance your loan application. Ensure you meet all the documentation requirements and consult with your bank for any specific criteria they may have.
04 August 2024
3 years ITR are to be submitted. The conditions may change from bank to bank
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