Immediate Funding with Personal Loans
Situations may arrive when your savings are not enough to cover your requirements. And even if they do, spending all your savings in one go is never a wise idea. Spending your entire savings in one go can increase your potential financial risks for the future as you don’t have any financial security to cover you back.
So, what’s the solution to such a situation where the money is needed immediately apart from your monthly expenses?
In this condition, borrowing is the only solution that is left with us. As we don’t have sufficient funds and on the same hand we don’t want to touch our savings. However, it will be prudent to just wait for things to change on their own even when you are in financial trouble.
As borrowing is the only option, what makes sense here is selecting a lender or a type of loan which has a convenient process of lending with simple terms and conditions. Personal loans in India are such financial products where you get funds without pledging any collateral or security at a pocket-friendly interest rate.
With the rapid integration of technology with the finance sector, you can now avail Personal Loan in a much faster way. One can apply for a personal loan by visiting the website of online providers- like HDFC, ICICI Bank, Finance Buddha, etc. To apply for this loan you just need to fill the online application form by providing necessary information. The processing is fast and your loan gets e-approved within an hour.
However, there are 4 stages of personal loan processing in India which we are going to discuss here-
Personal Loan Application
To initiate a personal loan processing, you need to fill an application form. The application form can be found easily on the online portal of lenders. The form should be duly filled, with all the correct pieces of information. The first part of the form includes columns to provide your personal information such as- your name, address, age, the company/organization with whom you are working and your contact details such as your mobile number and email address.
Once the lender receives your application, they will take the process ahead and will ask you to submit your KYC documents.
Basically, a lender needs KYC Documents of its applicants to determine and verify the identity, age, address and income.
The documents needed here are-
Identity proof documents.
- PAN Card
- 2 passport-sized photographs
- Aadhar Card
- Voter ID
Address Proof documents
- Registered Rent Agreement
Income proof documents.
- Latest salary slip
- 3 months bank statement
- ITR returns along with form 16
Documents Verification for Personal Loan:
The personal loan verification process starts once the lender receives all your documents. As per your submitted documents, the lender will first check your credit score. If your credit score meets their criteria, they will move ahead with verifying your documents.
The primary verification points are- your Identity & address that has been mentioned in your application form.
Secondly, the lender will verify your employment & income details by cross-checking with your employer and bank details.
Verification of documents such as PAN Card, Aadhaar card or Passport is done through an online process which makes the entire process fast.
When the lender finds that your documents are genuine and you fulfill the eligibility criteria, they will send you an e- approval msg or mail.
This is the last stage of your personal loan verification process.
In this step, the lender drafts you the loan agreement. This includes the terms and conditions for your loan, the interest and tenure period for which they are approving your loan. If you agree with all these and want the final disbursement, you need to e- sign those documents and send it to your lender. After this process is completed, the loan amount will be disbursed in your account within minutes.
However, it is always advised to carefully go through all the terms and conditions stated in the agreement before signing it. As taking is light can lead to future problems.
The processing of a Personal Loan is quite simple and takes a maximum of one to two days for the final disbursement. However, online processing has made the entire process convenient and simple for the applicants and with DSAs such as Finance Buddha, it takes only a few hours.