Need to apply for a bank loan and wondering what documentation is necessary? Personal Loans Now guides you through what docluments you need, where you can find them and raises problems that may occur in the process of applying for a bank loan.

What Documents Do I Need To Apply For A bank loan? - personal loans now

Learning Highlights
  • Applying for a bank loan
  • Identification documents required for the application
  • Checking a credit file
  • Proof of income
  • Self-certified loans

Documents Required to Apply for a Bank Loan

Applying for a loan with a bank requires a few documents such as proof of identity and proof of address. Getting a loan with a bank is only possible if you have an excellent credit record and meet all the requirements for identification and proof of income. In this article we wil explain what kind of documents you can use.

To get an unsecured loan using an online lender you will have to meet certain criteria. Therefore, just knowing which documents you require will improve your success.


One of the options if you are looking for a personal loan is to apply to your current bank. If your salary and household bills are all conducted through the same bank, the loans department will be able to see at a glance whether you can afford to borrow money. There are other bank loan alternatives which we will explore later.

There is another advantage for the lender if you use your own bank. The lender, can easily assess whether you are financially responsible and a good risk. In reality, many people take this route. However, in using your own bank, you may not get the offer of a low-interest rate.


Provide original documentation only - Personal Loans Now

Am I Eligible to Apply For a Bank Loan?

Some banks will only allow current customers to take out long term loans. On the other hand, others will lend to people who hold their main bank account elsewhere.

However, lenders other than banks will demand a comprehensive history of any previous borrowing. Mainstream lenders will insist on identification documents such as a driving license or passport, proof of current address and how much you earn.

All lenders apply age restrictions. This ranges from the lowest at 18, but it could be 21, until 80. (Different lenders have different rules.) So, the first hurdle to get over is that you must be a minimum of 18 years of age. Secondly, to get a loan, you must be a UK resident. You must also be able to prove where you live and show proof of your income.

What Identification Documents are Required?

Taking out a loan is akin to opening a bank account. Original documentation is required, and this has to be produced as a means of verifying the identification of the applicant.


Lenders only accept current identity and address documents - Personal Loans Now

Lenders only accept current identity and address documents - Personal Loans Now

All registered lenders must strictly adhere to money laundering regulations. If the company do adhere to these regulations, the company concerned can be fined, receive a penalty or even get suspended.

Proof Of Identity to Apply for a Bank Loan

Firstly, the list of documents for proof of identity is quite long and may include the following:

  • Current EU/EEA passport, photo driving licence or identity card.
  • All other current signed passports, with a valid UK Visa where applicable.
  • Current UK non-photo drivers licence.
  • HMRC Tax Notification.
  • Young Scots Card.
  • Biometric Residence Permit.
  • Blue disabled drivers pass.
  • Finally, benefits or pensions notification letter confirming the right to benefit.


Proof Of Address to Apply for a Bank Loan

Acceptable documents proving where you live are shown below:

  • Bank or building society statement.
  • Utility bill (such as gas or landline phone bill) dated within the last six months.
  • Local authority tax bill for the current year.
  • Tenancy agreement issued by a solicitor, housing association, local council or reputable letting agency.
  • Benefits or pensions notification letter confirming the right to benefit

Documents for both identity and address must be current, consequently, any expired paperwork will be insufficient. Proof of address must also include the full name of the applicant. Some lenders ask for one document to prove identity and two for the address. Others might request two of each proof.


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Bank Loan Alternatives

Did you know? Its not necessary to go into your bank anymore to apply for a personal loan. Bank loan alternatives such as personal loans and long term loans are now availble from online lenders. These loans are often much simpler to get and applying online for them can take just over a few minutes. Personal Loans Now offers loans up to £25,000 repayable over 5 years.

Applying for a Loan: Changing Address and Your Credit Record

Even if you have all the requisite documents to offer a lender, it is still possible that you will be turned down for best rate personal loans.

In the past, if you had recently moved house and the previous owner was a bad credit risk this could go against your own application. However, things have moved on. Credit reference agencies now follow the trail of an individual instead of using just an address to confirm the risk of an applicant.

Moving house can cause a temporary problem if you immediately apply for a bank loan. This could be down to your name not appearing on the electoral roll. But even if you have registered, it could take a while for this information to reach the credit reference agencies. Similarly, any current loans, such as logbook loans, with other lenders may not yet be registered at the new address.


Applying for a loan after moving house could be a problem - Personal Loans Now

Check Your Credit File Before You Apply

If you have moved home and are having problems getting a guarantor loan in the UK, it is worthwhile asking for a copy of your credit record. This will ensure that the details are up to date.

The UK has three credit reference agencies; Experian, Equifax and CallCredit. All of these agencies are required to provide a simple snapshot of your up to date credit record for a fee of £2.

Proof Of Income When Applying For A Bank Loan

If you are self-employed, providing proof of income when applying for a loan is different to the documents needed for an employed applicant.

Your employer may pay you under the PAYE system, lenders ask for the last three months pay slips or a copy of the previous years P60. If the lender you are applying to is not your usual bank, then they will also need to see bank statements. The statements show lenders details of the account into which your monthly salary is paid.

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Your loan will be granted subject to full approval.


Furthermore, self-employed applicants need to provide the last HMRC SA302 which confirms the salary for the last tax year. Lenders give self-employed loans provided all the other details are accepted. Also, if the lender is not your usual bank, you will need to provide copies of bank statements showing the relevant funds as per the form provided.

Moreover, you may also include any other sources of income too, such as private pensions or regular benefits as proof of income.

Applying for Personal Loans Without Proof Of Income

Some lenders approve loans for the self-employed who do not have annual accounts. Additionally, they may also approve employed people who are unable to prove how much they earn. These products are known as self-certified loans. Although they were popular before the financial crisis, they are now considered to be very controversial. Therefore avoid them at all costs.

The Financial Conduct Authority in 2014 banned companies in the UK from offering this kind of loan. Any business offering this kind of loan will have an address that is registered abroad. Consequently, any agreement taken out will not be subject to the scrutiny or regulations of the FCA.

FCA: Affordability checks is a must on every loan application - Personal Loans Now

Furthermore, interest rates for self-certified loans are very high. If you take on this kind of personal loan, you will receive no protection from the Financial Conduct Authority.

The first company to offer self-certification loans set up their firm in the Czech Republic but soon reached its lending capacity and had to stop taking applications – source website


Summary: How to Apply for a Bank Loan

In this Chapter of The Ultimate Personal Loans Guide, Personal Loans Now provides you with the basic information required to apply for a bank loan. This includes items such as what documentation you need for proof of identity and address. Furthermore, we guided you on accessing your credit record and what happens in the instance of a changed address Finally, be warned about the personal loans that are offered using self-certification. These loans have been banned by the Financial Conduct Authority in the UK.

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