Whether you’re ready to submit your personal loan application or you’re still in the researching stage, it helps to know what you’ll need when you apply for a loan. While much of the process can be handled online, there are still some documents you may need to provide as part of your application.
Applying online
When you apply for a personal loan online most lenders now electronically verify your identity and address through a credit reference agency (CRA) like Experian or Equifax. In this case, you will need to answer some questions that only you would know the answer to, but you won’t have the hassle of having to dig out any ID. This type of identity verification is known as “knowledge-based authentication” and will not affect your credit rating.
Sometimes the CRA will not have enough information about you on file (or in the databases that it has access to) to be able to verify your identity with a satisfactory level of certainty.
When this happens you may be asked to provide a photo of yourself, plus a photo of the identification page of your passport. Again, the lender will use technology provided by a CRA to verify your identity using the photos you’ve provided. If the lender doesn’t offer this facility then you may be asked to take ID to a branch or to post a certified copy (a copy that is certified as authentic by a member of the bank’s staff or by a solicitor, accountant, GP etc.).
You should be wary of sending off originals of particularly important forms of ID, such as your passport or driver’s licence.
Applying in-branch
When you apply for a personal loan in a branch, the old fashioned rules apply – you’ll normally need to bring two forms of identification – one to prove your identity and one to prove your address (you can’t use the same document to prove both). Normally it’ll be your passport or driver’s licence, plus a utility bill or bank statement.
To prove your address
Each lender will list the specific documents it will accept, but you’ll normally be able to use one of the following:
Driver’s licence
Benefits entitlement letter
HMRC Tax Notification
Local authority tax bill for the current year
A recent utility bill
A recent bank, building society or UK credit union statement
A recent tenancy agreement issued by a solicitor, housing association or local council
To prove your identity
Each lender will list the specific documents it will accept, but you’ll normally be able to use one of the following:
Driver’s licence
Passport
Blue disabled drivers pass
UK Armed Forces ID Card
Biometric Residence Permit
How lenders can verify your income
Again, those all-seeing credit reference agencies can amazingly now verify your income, through something called your current account turnover. However in rare cases you may still be asked to supply the following:
Pay slips
Bank statements
If you’re self-employed, tax returns from the last two years or other documents proving income
Many lenders will ask for your employer’s name and contact details in the full application. Your employer won’t necessarily be contacted by the lender though. Your pay slips coupled with your current account turnover are usually enough to satisfy a lender’s employment verification.
If needed, the lender can get in touch with your employer to verify. This is more common with mortgages than personal loans.
What other financial information will be required?
Lenders may occasionally require further information regarding your income and outgoings, such as:
Any documents that can prove additional sources of income
An estimation of your current expenses
If you’re applying to a lender that you don’t currently have an account with, you may also need to jump through a few more hoops than if you were an existing customer. This is primarily due to anti-money laundering requirements and will vary by lender.
Documents you need for a car loan
There are generally no additional documents you’ll need to provide if you’re applying for a car loan. While the lender will normally want to know what the loan is for, if the loan is not secured on the vehicle, the lender will not require any details on it – such as registration, tax, insurance, VIN number etc.
Four quick tips to speed up the application process
Use the soft search facility. Most lenders offer you the chance to give a few details (your name, age and address details for the last three years) in order to find out if you would be likely to be offered a personal loan, and to see what rate you might get (not everybody gets the advertised representative APR). This is a great idea, and it won’t affect your credit rating.
Know what’s needed before you start. To get everything organised, check the full list of required documents before you start your online application. When you click through to the lender’s site it will usually be listed before you begin.
File your documents. It probably sounds obvious, but if you file your utility bills, pay slips, bank statements etc. somewhere sensible, then you’ll know where to find them. It’s sometimes 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 to hand. You will be given login details to come back later.
By knowing exactly what documents you’ll need, completing your loan application can be quick and stress-free. Now you know what to expect, you can confidently compare a range of personal loans and apply today.
Bottom line
If you’re after a loan, you’ll need to share some personal information with the lender so that it can verify your identity and evaluate your credit history.
To save time during the application process, it’s worth finding out exactly which documents you may need to share so you’ll have them to hand when you do apply.
The documents may vary from lender to lender but before settling on a loan that appeals to you, shop around and compare your options.
Frequently asked questions
Some personal loan lenders can distribute the funds within hours while others can take up to a week or two. It’ll be quicker if you’re an existing customer, however with loans, it almost always pays to shop around.
There is no set in stone answer for this question. The best personal loan is the one offered to you with the lowest interest rate and minimal fees under terms that you consider favourable.
Possibly. You have options, however, you’ll more than likely have to show some proof of income such as unemployment benefits.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more. See full bio
Chris's expertise
Chris has written 612 Finder guides across topics including:
In this handy guide we walk you through all the essentials you need to know before getting a loan with 1+1 loans including key features, eligibility and how to apply.
If you have a personal loan and you want to make overpayments or simply pay it off in full ahead of time, you’re protected by the Consumer Credit Act. Here’s what you need to know.
If you’re a retiree and looking for a loan, there are lenders who may approve your application. Learn more about the loan types available to retired people.
Creation Financial Services offers fixed-rate personal loans of £1,000-£25,000 over 1-5 years with no hidden fees. Find out all the key features of these loans and compare live rates in our in-depth review.
Whether you’re planning on some home improvements, replacing your car or simply getting your finances in order, Sainsbury’s offers fixed rate personal loans of up to £25,000 to Nectar card holders. Fast, easy comparison with a range of lenders.
Compare HSBC fixed-rate personal loans against products from a range of UK lenders. Apply online and secure a competitive rate.
Feedback
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
