While it is common to face a financial crunch at some point in your life, what matters more is how you tackle it and what steps you take to arrange for necessary funding.
Now, with so many financial institutions operating today, borrowing has become a go-to option to suffice such urgent monetary shortages. Further, personal loans have turned out to be one of the most popular modes of emergency funding in India due to their easy accessibility and reduced disbursal time.
Since the count of applicants has seen a remarkable upsurge lately, it has also led to rising numbers of frauds, corruption, discrepancy, non-performing assets, and so on. Thus, as a matter of course, the verification process of personal loan has also been rigidified. Although the procedure of verifying the personal details of an applicant varies from one lender to another, the RBI sets standard governing guidelines for such verification.
As one cannot afford to face a delay in personal loan approval during emergencies due to verification issues, it is ideal to be aware of the verification procedures of these loans. Staying well-informed of the verification process of personal loan can help receive such an advance in an emergency without any delay.
4 stages of the personal loan verification process
As personal loans are an unsecured mode of financing, lenders make it essential to rigorously check one’s financial capability, employment details, credit history, etc. before sanctioning a loan.
The verification process of personal loan thus includes the following few stages, starting right from application to approval and disbursal.
- Loan application submission
To initiate your request for a personal loan, you will first have to fill up an application form. You can either do so online or visit the lender’s branch to collect, fill up and submit this form. Make sure to provide all the details accurately to reduce any hassles of verification. A lender might as well ask you to attach your passport-sized photograph with this form.
However, as online loan applications require minimum hassle, you can save time by applying for a personal loan online.
- Completion of documentation formalities
The second step in this verification process of personal loan is document submission. The lender will specify the documents you will need to provide. It is likely to include the following –
- KYC documents (such as Voter ID card, Aadhaar card, passport, driving license, PAN card, etc.).
- Employment proof.
- Income proof.
- Address proof.
Invalid or incomplete submission of the required documents is one of the primary factors which can affect your chances of personal loan approval. However, before asking for the above documents, the lender will check your CIBIL score for personal loan eligibility. Only if your CIBIL score is satisfactory, the authorities will consider your application to be valid.
- Verification of submitted documents
This is where a lender initiates the document verification process. The lending institution usually assigns a representative to complete the task of checking whether the details claimed by such applicants are authentic.
You can go through the handy guide to personal loan FAQs for more details regarding such verification. Nevertheless, the underlying requirement is that the applicant should cooperate in providing any concerning details to the representative for a satisfactory verification.
- Loan approval and disbursal
The last and the final step in the verification process of personal loan is when the team has conducted all the inspection formalities and is ready to process your loan request. If everything is error-free, the lender approves your loan application in no time. The concerned loan amount is disbursed to your account soon after. Further, lenders like Bajaj Finserv have been known to facilitate hassle-free verification and processing of the advance to ensure fast disbursal.
Pre-approved loan offers from the lender are another great way to address application and approval requirements in minimum time. Such offers are available on several financial products, including business loans, credit cards, and personal loans. You can check your pre-approved offer instantly only with your name and contact details.
To avail of the best personal loan, you must ensure beforehand that you are eligible for it. Otherwise, hassles involved in verification may delay funding altogether. You can also discuss the specific personal loan verification process with the selected lending institution for a more thought-out approach to convenient and quick borrowing.