Although you have had an overview about Personal Loans, the lingering questions in your mind must be:
How to go about the process of actually availing a Personal Loan?
How to choose what’s right for you?
How to get the maximum benefits out of your Personal Loan?
The following are the general steps to be followed, in order to be able to successfully avail a personal loan. However there may be specific requirements depending on a particular bank’s policies.
Step 1: Documentation
Ensure that you have all the necessary documents in order. The types of documents required are:
1) Age Proof
2) Address Proof
3) 2 passport size (colour) photographs
4) Updated bank account statements for the past 3 months
5) Signature verification (Incase of any sign mismatch)
There are certain other document specifications required depending on the bank you apply to.
Step 2: File Login
Your loan application along with your documents will be submitted to the bank for approval.
Step 3: File Verification
Upon receiving your loan application, the bank initiates a verification process by appointing a third party agency. Customers are expected to cooperate during the entire process; any sign of non-cooperation (i.e. locked house, wrong information submitted, etc) may result in the rejection of your loan application. Based on the information gathered, a positive or a negative report is sent to the concerned bank.
Step 4: Approval
Upon receiving a positive report, the bank will review your application after due consideration of the documents you have submitted. In case of any additional documents required, it will be communicated to you prior to approval.
Step 5: Disbursement
The bank will perform a final checking of approved files, agreements, cheques etc. if everything is proper, Delivery Order will be issued. In case any mismatch in signature or address proof, the delivery may be delayed until further rectification.
Loan approval is the sole discretion of the bank, which is why one needs to avoid the following to ensure greater chances at loan approval. Although these aren’t the only reasons, these are the major contributing reasons for rejection.
- Incomplete documents
- Negative profile
- Verification of outstation address
- Unhealthy previous loan/ credit records
- Request for approval in change of tenure after signing agreement
- Request for approval for higher loan amount after signing agreement
- Mismatch of signatures in documents and bank cheques
- Verification of co-applicant’s address and status of staying out of station
- In case there is a difference of information presented in the application and documents.