Personal loan documents

Whether you’re ready to submit your personal loan application or you’re still in the researching stage, it helps to know what you need to apply. This guide will bring you one step closer to being approved for your personal loan by preparing you for the application process. Please note that document requirements vary between lenders, so you may not need to provide all of these.

What documents do I need to get a personal loan?

The list of requirements to apply for a personal loan usually include: government-issued ID, some form of income verification, and proof of your debts and assets. We break these down for you below.

What counts as a government-issued ID?

Lenders usually require at least two forms of valid government-issued identification. These may vary between provinces and territories, but usually include:

• Driver’s licence
• Passport
• Health card

It may also include supplementary documentation in the form of:

• Your birth certificate
• Social Insurance Number (SIN)
• Certificate of Citizenship
• Utility bills

How do lenders verify my income?

Almost every lender requires you to meet a minimum income requirement. When you fill out the application form, lenders will need the some basic information and details to verify your income.

• Bank statements
• Pay stubs
• Tax returns (if you’re self-employed, tax returns from the last two years may be requested)

What other financial information do lenders require?

Lenders may also require information regarding your assets, debts and liabilities. Here are some other documents you may want to have on hand:

• Current credit card and loan statements
• Additional/alternate sources of income
• An estimation of your current expenses
• A current rent or mortgage statement

Must read: Best personal loans in Canada

How do lenders verify my employment?

Many lenders will ask for your employer name and phone number in the full application. But your pay stubs and direct deposits are usually enough to satisfy a lender’s employment verification. If needed, the lender can get in touch with your employer to verify your employment and income details. However, this is more common with mortgages than personal loans.

Do I need to provide extra documents if I’m buying a car?

Yes. A secured loan requires extra documentation so the lender can verify certain details about the asset. These details will need to be confirmed with the lender before you apply and especially before you purchase the asset. Expect to provide any of the following documents when applying for a car loan:

• Car insurance policy
• Tax invoice (if purchasing from a dealership)
• Car registration plates
• Vehicle ID (VIN) number
• How much you paid for the car
• The contact information of the seller (dealership or private seller)

Finder survey: What is the main reason why Canadians from different provinces have had a car or personal loan denied?

3 quick tips to speed up the application process

• Know what’s needed before you start. To get everything organized, check the full list of required documents before you start your online application. When you navigate to the lender’s site, a list will usually be given to you before you begin the application.
• Scan all your documents. It’s a good idea to have an electronic copy of your important documents for other purposes as well. It provides easy access whenever you need to complete an online application and could serve as a backup in case you lose the original.
• Start now, finish later. Take advantage of the “save and complete later” function offered on most online application forms if you don’t have everything on hand. You will be given login details to come back later. This means you won’t need to re-enter any information that you’ve already provided.

Bottom line

By knowing what exactly what documents you’ll need, filling out your loan application can be quick and stress-free. Once you know what to expect, you can confidently compare a range of personal loans and apply without worrying about the application taking forever to complete.

Frequently asked questions

• How long does it take to get a loan?

  Some lenders can distribute the funds as soon as the next business day, while others can take up to a week or two.

• Who has the best personal loans?

  There is no answer for this question since every individuals financial situation is different. The best personal loan is the one offered to you with the lowest interest rate, minimal fees and terms that you consider favourable.

• Can I be approved for a loan if I'm unemployed?

  Possibly. You have options in unemployment loans, however, you’ll more than likely have to show some proof of income such as unemployment insurance (EI), pension or investment income.