4 Mandatory steps within the personal loan process that applicants should never avoid

In life, people may have some situations where the savings may even not cover enough requirements. To satisfy all your necessities, spending the entire savings in the one go isn’t a rational idea at all. If that situation occurs, this step can increase all possible economic risks for your future, creating financial insecurity. You will left nothing to cover your back!

So, what can be the best possible solution when a person is in an immediate financial need?

Well, in that situation, borrowing money from a bank or financial institution in the form of a personal loan process is an excellent solution left with us. When you are out of sufficient funds and don’t want to break your savings on the same hand, opting for a personal loan is much prudent than just waiting for things to change even when you are in financial trouble.

Selecting a conventional lender definitely makes sense to experience a convenient lending process with simple terms and conditions. In India, personal loans are the type of financial product that helps you get fund support without pledging any security or collateral at an affordable interest rate.

Personal Loans in India:

The Indian finance sector is experiencing a rapid integration of technology. Hence, you can now effortlessly obtain a personal loan much faster than before. You can apply for a personal loan scheme online through the website of loan lenders. However, you will require some information to fill the online or offline application form to continue the personal loan process and get approval easily. On the website, the process is much quicker and involves 4-simple steps:

  • Application form information:

To proceed with the personal loan application, you need to follow the initial stage, filling the application form with correct information. You can easily find the application form on the lender’s online portal. You require to fill the needed information duly with all the accurate pieces of information. The application form demands some basic personal data of the applicant, such as – name, age, address, income information, contact details (email and mobile number), etc.

  • Mandatory Documents:

Once your lender has received the application form, they will demand you some mandatory KYC documents to submit to head in with the next procedure. The lender will verify your authenticity, name, address, age and income with your submitted official documents, which are –

ID Proof-

  1. Voter card
  2. Aadhar card
  3. Pan card
  4. Passport

Residential proof-

  1. Utility bill
  2. Electricity bill
  3. Passport

Income proof-

  1. Bank statement
  2. Salary slips
  3. IT Return
  4. Form 16
  5. Document verification process:

After the lender receives your documents along with the application form, they proceed with an important step – verifying the borrower’s documents. According to your submitted papers, the lender will review your credit score. If your existing credit score matches their eligibility criteria, the lender will steer the process ahead of verifying your documents.

However, the major verification factors are – your address and identification proof you mentioned in the application form. After that, they will check with your employment and income proof details by cross-checking with your employer and bank statements.

In the case of an online application, the lender verifies through a Pan card, voter card, Aadhar card or Passport. It’s the fastest process, however.

  • Disbursement of the Loan:

Disbursement is the last and ultimate stage of your personal loan process. In this step, the lender will hand you over a draft of the loan agreement. This agreement involves some terms and conditions regarding the loan, interest rates, tenure period that you have customized and your lender has approved. If you agree with the terms and conditions mentioned in the agreement, the lender will finally disburse the loan. In the case of online, you require to complete e-signs on the documents to complete the process.

However, it’s always advisable to check out all terms and conditions carefully stated in the agreement papers before you sign it off.

Summing Up:

The personal loan process in India has become quite simple, with minimal documentation and hassles. It maximum takes a few days to get your loan sanctioned and to disburse. We advise you to submit all mandatory documents accurately and follow the rules. Yet, online application for personal loans is much convenient and efficient for applicants with busy schedules.

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