Every loan application form is unique in terms of requirements. And so it is the online personal loan form wherein an applicant has to share details. 77% of working professionals rely on personal loans for different needs. However, it can often be an overwhelming experience if the personal loan application form doesn’t have neatly defined sections and relevant questions in perfect order. Let’s break down a personal loan form today, one of the most important in the loan application form category.

What’s in a Personal Loan Application Form?

Similar to a job resume, a personal loan form acts as a financial resume. It highlights an applicant’s creditworthiness, borrowing needs, and ability to repay in the future. This bridge between a loan provider and the lender is documented proof of the applicant’s financial health and repayment potential.

Six Sections of a Personal Loan Form

Let's dive into the key sections of a well-designed form personal loan form. These are what make up the criteria for a lender to provide loans:

1. Personal Details

A personal form begins by obtaining the applicant's details. These include details like name, date of birth, contact information, social security number, and residential address. Any mismatch of spellings here and in the respective official documents could lead to the rejection of the personal loan application form. Hence, ask the applicant to double-check by showing them their submissions.

Source

2. Income and Employment

This section is to know about the applicant’s financial stability. Hence, the personal loan form collects details about employment status, employer name, job role, duration of employment, annual or monthly income, and other income sources. The option to upload tax receipts and pay slips would make the personal loan application form proceed quickly through this section.

3. Loan Needs

Here, the applicant specifies their purpose for taking a loan and the exact amount and chooses the preferred terms. The terms can be highlighted so the applicant can read and tick them.

4. Financial Details

Besides income, the applicant may have assets and liabilities such as savings, investments, land, existing loans, or credit scores. A personal loan form is not finished unless these applicant details are also captured. These indicate the lender the borrower’s ability to repay in time and also bring out a realistic picture of how the applicant is doing with their current loans and credit card expenses.

5. Co-Applicant, Guarantor Info (Optional)

In the case of a joint personal loan application form with more than one applicant, other people's financial details are also taken in. Generally, an applicant will choose co-applicants, also called co-borrowers, with equivalent or better financial health to get the loan approved quickly.

Source

If the applicant doesn’t seem capable of repaying the loan, they might get a guarantor to repay the loan. This section also takes the exact details of the guarantor while educating them that if the applicant fails to repay, the guarantor’s credit score would also be affected.

6. Terms and Conditions, Signature

Ultimately, a signature on a personal loan form is a must. A signature could be uploaded as an image or a document, or its image could be clicked live. Hence, relevant input types are needed here to capture information quickly and finish the loan application form.

This is your pledge of honesty. Read it carefully before signing; it's your commitment to the accuracy of the information provided.

Make the Personal Loan Form Quick to Fill

A personal loan application form aims to capture details and see if the applicant meets the criteria. The following 3 quick tips will be of value:

• Use auto-fill: This ensures that already saved information, such as name, address, etc., is not asked again.

• Allow multimodal input: The user can write, add images, send voice notes, and share files in different formats. This feature is for convenience and fast data capture. See below how text got replaced with a clickable image!

Source

• Progress bar: A progress bar is essential for each section and the overall personal loan application form. This lets the applicant know how much more time they have before they can press “submit. “

Get Started With Your Personal Loan Form

A personal loan application form is the first step to knowing an applicant’s qualifications for a loan. Doing it right is the way to capture accurate information and prevent bad-quality borrowers from entering your loan application form funnel. You can see personal loan application templates at various form-building sites like Jotform. To make an AI-powered form, get started with WorkHack for free and capture data the fastest way possible.