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Know About the Verification Process of Your Personal Loan

  • Highlights

  • Personal Loans provide you with financial leverage

  • Clarify all the terms before applying for a personal loan

  • 5-step process is followed for applying and approval of Personal Loan

Personal Loans are one of the popular and sought-after loans in India. Whether it’s a vacation or a dream wedding, house renovation, higher studies or any emergency financial requirements, personal loans are an all-in-one financing solution. They provides you with financial leverage that extends well beyond your monthly earnings.

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Banks and Non-Banking Financial Corporations (NBFCs) provide Personal Loans to meet your financial obligations. With easy verification process and minimum documentation, you can borrow upto ₹25 lakhs in as few as 24 hours.

Here’s the 5-step approval and disbursement process of personal loans that is generally followed by banks and NBFCs:

Loan Enquiry

Get in touch with a lender and get to know about the Personal Loans offered by them. Approach various lenders and compare the terms and features of the loan. You should also check your eligibility criteria and calculate loan EMIs based on the Principal amount and the interest charged by the lender.

Loan Application

After clarifying about the loan terms, personal loan interest rates and the Principal amount, you need to choose a lender and apply for a Personal Loan for yourself. After receiving your application, the lender will process it to initiate the document collection and approve the loan disbursement. You can apply for a Personal Loan online or you can personally visit the lender with your loan application.

Document Collection

Once the lender receives the loan application, they usually send representative or an agent to collect the required documents to avail a personal loan. Generally, the documents required are,

-   Photo Identity proof
-   Proof of Address
-   Employment Proof
-   Income Proof
-   Photographs

Additional Read : How to Get Low Interest Personal Loan

5 things you can get on EMIs for your wedding

Verification of Documents

After receiving the documents, the lender initiates the process of verification. A representative from the field investigation team visits the borrower’s place of residence to verify the address mentioned in the documents. They can also visit the applicant’s workplace to verify if he/she works there. Verification of other documents like PAN Card, Aadhaar card or Passport is done using online portals.

After verifying the documents, the investigation team forwards its reports to the loan officer in charge of handling personal loan accounts. If the verification process is successful, the lender then processes the loan for disbursement.

Additional Read : Getting an Aadhar Card: A Step-By-Step Guide

Loan Disbursal

Once all the documents are verified, the lender approves the personal loan application and prepares for its disbursal. The applicant needs to sign a loan agreement which contains all the information about the loan. Once the applicant signs the agreement, the loan amount is credited within 24 hours to the applicant’s bank account.

The content of this document is meant merely for information purposes. The personal loan features mentioned in this article are subject to updation, completion, revision, verification and the same may change materially based on policy revisions. For more details, please visit our Personal Loan terms and conditions page here.

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