Loan Document is one of the main forms required of all the documents while applying for the loan as it contains the information about all the other important documents required. This document is basically a checklist where the lender can check if the borrower has submitted all the documents or not. The document is a written proof that the lender has received all the documents from the borrower and cannot deny at the later stage about it.
It is good to have a document where all the important documents that are required for getting a loan approved are mentioned because then the chance of a miss is going to reduce. The document has a checklist that contains the name of the documents like
- Liability Form
- Loan Agreement Form
- Loan Contract Template
- Identity proofs like a copy of PAN card, Passport
- Bank Account details
- Photographs of the borrower
- Details of all the property owned by the borrower that can serve as the guarantee of the loan
Loan is a process of lending huge amount of money to someone unknown and thus the risk factor is a very high. Loan document is thus going to help the lender to have all the documents from the borrower which can help in developing a strong trust level between the two. When the lender is going to have all the information about the borrower like Name, Address, Total income, Total liabilities then it is easy to calculate that the money is going in right hands and possibility to get back the money is more.