How Personal Loan Verification Process Works?

Feb 18, 2020

A Personal Loan is amongst the most popular financing options in India. It is unsecured by nature which means that you can avail the loan without putting up collateral for security. The personal loan verification process at Fullerton India is designed in such a way that it makes the entire journey completely hassle free for eligible applicants. Regardless of whether you apply online or through a physical application at our branch, the below personal loan process steps would ensure that your loan amount is disbursed quickly.

Personal Loan Verification Process Steps

Look at the 5 steps personal loan verification process that is usually followed by all major banks and NBFCs in the country.

Loan Application:

Your lender will need to receive your application - either online, or through a physical form filled up at the branch. After you submit your application, you will be given an application ID number which you can then use to track the status of your application.

Online Decisioning:

After receiving your application, many lenders give you an instant decisioning based on factors like your age, location, CIBIL score, etc on whether they can consider your application. At Fullerton India, we provide this decisioning within minutes of submitting the application online. Do note that for physical applications, this step may take a couple of days.

Must Read: How to Calculate Personal Loan EMI?

Document Collection:

Once your application has been received, a representative generally send will be sent to collect your documents that will be required in the personal loan verification process.

Generally, the documents required are,

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

Verification of Documents:

The personal loan verification process is initiated once the lender has received all your documents. This may also involve completing the Know Your Customer or KYC process.

The lender may request you to visit the branch with the originals of the documents that you had submitted previously with your application form. The primary verification point is your address that has been mentioned in your application form. The lender will also verify your employment details by cross-checking with your employer. At Fullerton India, you can request for doorstep verification - our representative will meet you at a suitable time and verify your originals.

Verification of other documents like PAN Card, Aadhaar card or Passport is done using online portals. The report by the investigation team is shared with the loan officer post the personal loan verification process has been completed.

If all the paperwork is in order and has successfully cleared the verification process, the lender will then move on to approving the loan.

Loan Disbursal:

You can call this the last stage of the personal loan verification process.

To take this towards completion, the loan agreement is drafted. This is done after you have agreed to the tenure of the loan and the personal loan rate of interest offered to you by the lender. The period of repayment typically ranges between12 to 60 months.

This agreement contains all the necessary details such as the loan amount, loan repayment period, interest rate, fees and charges, and all the terms and conditions of the personal loan offer. It is advisable to carefully go through all the terms and conditions stated in the agreement before signing on the dotted line.

Must Read: How to Check CIBIL Score for Personal Loan?

Once the agreement has been signed by both you and the lender, the personal loan is disbursed to the applicant usually within 1-2 working days. At Fullerton India, we disburse the amount directly to your account within 30 minutes* of loan approval.

Your creditworthiness is a key element of determining if you are eligible to get a personal loan or not. This can be done by checking your salary slips or IT returns and your CIBIL rating. A credit score of 750 or higher will help your loan to get approved quickly.

Eligibility Criteria

The general criteria for a personal loan that is accepted across financial institutions in the age, occupation, income, capacity to repay the loan and place of residence of the applicant. Whether you are a self-employed individual, business owner, a professional or on a salary, a regular source of income is an absolute must for anyone to get a personal loan. Other factors that also determine your personal loan eligibility are the company where you are currently employed, your CIBIL score, etc.

How to Apply for A Personal Loan?

Does this mean you have to physically visit the financial institution to make the application? Not at all. You can get all of this done right from the comfort of your home or work, anytime, anywhere.

There are several third party websites where you can submit your requirements of a personal loan. You will receive some offers that match your needs. You can shortlist from these options and then proceed towards checking your personal loan eligibility and the loan application phase.

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