Getting a Personal Loan can be a complicated process with different steps and checks involved. To make sure you have a successful loan application, you need to understand the verification process. This guide aims to explain the process in simple terms and prepare you well for your application.
Verification process for Personal Loan
Loan enquiry
- Understanding loan varieties: The loan enquiry phase is about more than just gathering information. Take this opportunity to understand the different types of loans on offer. Each loan type has its own set of terms, benefits and structure.
- Assessing repayment terms: Scrutinising repayment schedules is crucial. Knowing the flexibility and structure of repayments can help you plan your finances accordingly.
- Uncovering hidden fees: Ask about any additional charges that may not be immediately apparent. Understanding all charges, is crucial to assess overall cost of the personal loan.
Loan application
- Accuracy is key: Providing detailed and accurate personal and financial information is paramount. Inaccuracies can hinder your application's progress or lead to outright rejection.
- Completeness: Ensure that no section of the application is left incomplete. Every piece of information can be vital to the approval process.
Documents/Financial information verification
Your financial information and documents, if any, are a testament to your credibility and financial history.
- Identity verification: Keeping official identification documents like your passport or Aadhaar card updated is essential for a smooth verification process.
- Income proof: Recent salary slips or tax returns are necessary to confirm your financial stability and income bracket. With Axis Bank, you may get an opportunity to verify your income online.
- Residence verification: Utility bills or lease agreements serve as proof of residence and are often a requisite part of the lending process.
Verification process
The personal loan verification process is where your financial portrait is scrutinised for authenticity.
- Scrutiny for accuracy: The personal loan verification process involves a meticulous review of your submitted documents to ensure all provided information is correct and truthful.
- Collaboration with agencies: Lenders often collaborate with loan verification agencies to ensure thorough and unbiased verification.
- Determining eligibility: This process is not just about checking documents but also about confirming that you meet all of the lender's criteria for the loan.
- Impact on processing time: The completeness and accuracy of your documentation directly affect the speed of the verification process.
Personal Loan sanction
Achieving a Personal Loan sanction is a moment of validation in your financial journey.
- Close to completion: Passing the verification stage brings you one step closer to receiving the loan approval notification, which signifies a successful end to the verification process.
- Finalising terms: This is the point at which you and the lender agree on the loan amount, interest rate, and repayment schedule.
- Sign of trust: Approval is a sign of the lender's confidence in your financial reliability and their willingness to enter into a financial relationship with you.
- Milestone achievement: Receiving the loan sanction is a significant milestone, as it indicates the culmination of a successful application and verification process.
Also Read: Choosing the right Personal Loan for your needs
Conclusion
Choosing the right bank for your Personal Loan is not just about finding the best rates; it's about ensuring a seamless and supportive borrowing experience. A bank that offers a straightforward Personal Loan verification process, coupled with competitive features, can make all the difference.
When considering your options, it's worth exploring a Personal Loan by Axis Bank that offers a high maximum loan amount, like ₹40 lakhs, to give you ample financial headroom for your needs.
Additionally, flexible loan tenure options, ranging from 12 to 84 months, allow you to customise your repayment schedule to fit your financial situation comfortably. An attractive interest rate is also a key factor, and starting from as low as 10.65% p.a., it can significantly lower the cost of borrowing. Processing fees up to 2% plus GST is the standard rate, offered by most financial institutions.
In selecting a Personal Loan, these features collectively contribute to a beneficial financial decision, supporting your aspirations without overburdening your budget.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
