What is the Personal Loan verification process?
Personal loan can be availed without hassles, making them a popular credit facility. We offer immediate approval on your loan application and disbursal within 24 hours* from approval. Collection of documents our representative will contact you to pick up the documents, which may include the following: Disbursal of loan. You will be confirmed as you receive the loan agreement and a signed sanction letter, the loan will be then disbursed. We advise you to use our personal loan EMI calculator and plan your loan repayment journey before applying for a personal loan.
What are the steps in the personal loan verification process
The personal loan verification process ensures eligibility and credibility before loan approval. It involves document submission, verification, and approval. Understanding the personal loan verification process in India helps streamline applications and avoid delays.
Know the steps in the personal loan verification process
Here is the 4-step personal loan verification process.
1. Application
The first step of verification and consequent approval of your loan begins with your personal loan application. After receiving an application, your request is processed.
2. Collection of documents
Collecting paperwork is the next step. Our representative will contact you to pick up the documents, which may include the following.
- Proof of address and identity: Passport, driving licence, Aadhaar card, or voter ID card
- Proof of employment and income: Employee ID card, salary slips of the last two months and bank account statements for the last three months
3. Verification of documents
The personal loan verification process includes validating all the details about an applicant, including meeting the eligibility criteria, documents provided, repayment capacity, CIBIL score and more. Our representative may visit your residence and your place of work to verify your details.
4. Disbursal of loan
Once this verification process is through, you receive loan approval. This confirmation is intimated to you when you receive the loan agreement and your personal loan sanction letter once it is signed. The loan is then disbursed.
With your application verified and credit sanctioned, you can now use the amount to meet your requirements. Repay the loan in affordable EMIs at our attractive personal loan interest rates.
*Terms and Conditions apply
Impact of loan verification on credit score
The personal loan verification process plays a crucial role in determining loan approval and can influence your credit score. Each stage, from document assessment to approval, affects your creditworthiness. Understanding the personal loan verification process in India helps borrowers manage their credit health effectively.
How loan verification affects your credit score
- Hard inquiries by lenders – During the personal loan verification process in India, lenders conduct credit checks, which may cause a temporary dip in your credit score.
- Loan approval or rejection – A successful approval strengthens creditworthiness, while multiple rejections can negatively impact your score.
- Timely repayments – Once approved, repaying the loan on time improves your credit score over time.
- Credit utilisation ratio – Taking on new credit affects your debt-to-income ratio, influencing your overall credit profile.
- Multiple loan applications – Applying for several loans at once may indicate financial distress and lower your credit score.
Common reasons for personal loan verification failure
The personal loan verification process ensures that applicants meet the required criteria before approval. However, certain factors can lead to verification failure, delaying or rejecting the loan application. Understanding the personal loan verification process in India helps applicants avoid common mistakes and improve approval chances. Here are the common reasons for personal loan verification failure.
- Low credit score – A poor credit history reduces credibility, making lenders hesitant to approve the loan.
- Incomplete documents – Errors in submitted documents or missing paperwork can lead to application rejection.
- Unstable employment history – Frequent job changes or inconsistent income may indicate financial instability, affecting approval.
- High debt-to-income ratio – If existing debts are too high compared to income, lenders may decline the loan.
- Mismatch in address or contact details – Incorrect personal details can lead to verification failure during the lender’s background check.
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FAQ
After verification, the lender approves the loan, generates an agreement, and disburses the amount to the borrower's bank account.
Loan verification usually takes 12 months, depending on the lender and applicant's documentation accuracy.
It involves application submission, document verification, credit evaluation, approval, and disbursal of funds.
The process includes application, document verification, credit assessment, approval, agreement signing, and loan disbursal.
A soft approval is a preliminary approval based on basic eligibility checks before final verification.
Approval can take a few hours to a few days, depending on the lender’s process and applicant’s profile.
Lenders assess the applicant’s financial stability, creditworthiness, and repayment ability before approval.
