Why are Documents Required for Online KYC Before Loan Preparation

Know Your Customer (KYC) is a mandatory regulatory process governed by the Reserve Bank of India (RBI) under the Master Direction. It is the cornerstone of the financial system, designed to verify the identity and address of customers to prevent identity theft, financial fraud, and money laundering.

Whether you are applying for a personal loan, opening a savings account, or investing in mutual funds, you must complete the KYC verification process with a regulated entity like Hero FinCorp, a leading NBFC. To enhance customer convenience, the RBI has pioneered digital-first methods such as Video-based Customer Identification Processes and Aadhaar e-KYC, making "branchless" banking a reality in 2026.

List of the Documents are Required for KYC?

The RBI defines a specific set of Officially Valid Documents (OVDs) that serve as proof of identity and address. To understand what documents are required for kyc, one must distinguish between primary identity proofs and address proofs.

Identity Proof & Address Proof (OVDs)

Under the current simplified norms, a single OVD containing both your name and address is sufficient for both identity and address proof. When determining how to get kyc documents, prioritize these six options:

• Aadhaar Card: Can be used via e-KYC (OTP/Biometric), Offline XML, or the secure QR code.
• Passport: A mandatory requirement for NRIs and a premium OVD for residents.
• Voter Identity Card: Issued by the Election Commission of India.
• Driving License: Must be current and valid.
• NREGA Job Card: Duly signed by an authorized state government officer.
• National Population Register (NPR) Letter: Containing details of name and address.

PAN Card and Its Importance

The Permanent Account Number (PAN) card is mandatory for all significant financial transactions, including loan applications and any transaction exceeding ₹50,000.While it serves as a primary identity proof, it is not accepted as proof of address documents. In cases where a PAN is not available, customers must submit Form 60.

Deemed Officially Valid Documents (DOVD) Explained

If your primary OVD (like a Passport or DL) does not reflect your current address, you may submit Deemed OVDs. These are temporary documents required for kyc that must be replaced by an updated OVD within three months:

• Utility Bills: Electricity, telephone, post-paid mobile, piped gas, or water bills (not more than 2 months old).
• Property Tax Receipt: Or municipal tax receipt.
• Pension Payment Orders (PPOs): Issued to retired employees if they contain the address.
• Allotment Letter: Of accommodation from an employer (Government/PSU/Listed Companies).

Types of KYC Verification Processes

In 2026, the types of KYC used by lenders have evolved to be entirely contactless.

Aadhaar-based e-KYC

This is the fastest way to verify your identity. It involves providing your Aadhaar number and authenticating it via an OTP sent to your registered mobile or through biometric scanners. This is the most common method for online KYC registration.

Video-Based Customer Identification Process (V-CIP)

V-CIP is the gold standard for remote onboarding. An authorized official from the regulated NBFC conducts a live video call to verify your original documents and perform a liveness check to prevent deepfake fraud.

In-Person Verification (IPV)

The traditional method where a customer visits a branch or a representative visits the customer’s residence to verify original documents and capture a live photograph.

How to Do KYC Online: Step-by-Step Process

To complete kyc verification online for your next loan application, follow these steps:

1. Step 1: Access KYC Portal: Visit the official website or mobile app of your lender and navigate to the online kyc registration section.
2. Step 2: Upload Documents: Upload high-resolution scans or photos of your PAN and one OVD (e.g., Aadhaar). This is the core of how to create kyc online.
3. Step 3: Video KYC & Liveness Check: Join a live video call. The system will use AI-powered liveness detection and Geo-tagging to confirm your physical presence in India.
4. Step 4: Digital Consent: Provide your final digital signature or Aadhaar OTP to authorize the lender to fetch your records from the Central KYC Registry (CKYCR).

Importance of Maintaining Up-to-Date KYC for Loans

Understanding how to complete kyc verification is vital for maintaining your credit health:

• Faster Loan Disbursement: Instant personal loans are only possible if your digital KYC is current.
• CIBIL Accuracy: Your credit score and report rely on accurate identity data; outdated KYC can lead to mismatched credit files.
• Fraud Prevention: Updated records ensure that only you can access your funds or apply for credit in your name.

Common Challenges and Solutions in Online KYC Verification

• Issue: Low lighting or blurry document photos.
  • Solution: Conduct V-CIP in a well-lit room with a plain background.
• Issue: Aadhaar mobile number not updated.
  • Solution: Ensure your mobile is linked to Aadhaar to receive the mandatory OTP.
• Issue: Document name mismatch.
  • Solution: Use documents where your name exactly matches your bank and loan application.

KYC Document Requirements for Special Cases

• Minors: For children under 10, the KYC of the parent/guardian is required. Upon turning 18, a fresh KYC process is mandatory.
• Non-Resident Indians (NRIs): Must provide a valid Passport and Visa/Work Permit, often attested by the Indian Embassy.
• Small Account Holders: Individuals without an OVD can open a "Small Account" with a photograph and signature, subject to a ₹50,000 balance limit.

Frequently Asked Questions

What documents are required for kyc when applying for a personal loan?

Typically, you need your PAN card and one Officially Valid Document (OVD) like Aadhaar, Passport, or Voter ID.

How to do kyc online safely?

Always use the official portal of a regulated NBFC. Ensure the URL starts with 'https' and follow the online kyc registration steps involving Aadhaar OTP or Video-KYC.

What is the difference between e-KYC and V-CIP?

e-KYC is an automated Aadhaar-based OTP/biometric verification, while V-CIP involves a live video interaction with an official to verify original documents. Both are valid types of kyc.

How to complete kyc verification if my address has changed?

You can use deemed OVDs like a recent electricity bill or water bill for a period of three months until you update your primary OVD with the new address.

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