• Personal Loan Approval Process

    Today, most of the banks are focusing on online methods to do away with the complex documentation procedures and to accelerate the entire loan approval process. Also, the demand for such loans is higher these days. Typically, a Personal loan approval involves the following steps:

    • Loan application
    • Discussion with the lender
    • Background verification by the bank
    • Signing in of necessary documents
    • Loan sanctioning and disbursement

    Processing of Loan Application

    Ideally, banks should acknowledge the receipt of a loan application within 7 days from the date of request. After the basic examination of the details furnished by the applicant, banks should intimate the person and issue him a registration number. Further documents to be submitted for loan approval should also be mentioned in the intimation letter. In cases where initial application fails to meet the eligibility criteria, the lender organization must return the application and communicate the reason for rejection. Banks also check your CIBIL report for written-off loans, payment history details, and EMI-income ratio to determine your eligibility.

    Approval of a Loan

    The time taken for approval of a personal loan depends on the authenticity of the information provided by you. On approval, borrowers may either be offered a fixed rate of interest on the loans or a floating rate. Floating rates change according to the fluctuations in market. For the bank to approve loan request, you will have to submit the following documents:

    • Bank statement
    • Identity proof and address proof
    • Salary statement
    • Income tax statement

    It is advisable that you maintain a decent credit history to smoothen the entire process of loan approval. Paying dues at the right intervals and reviewing your credit status from time to time will help you in improving your scores. Before applying for loan, you can also check your eligibility through the loans webpage of the respective bank. You just have to fill out some basic information to know whether you are eligible for a particular loan or not.

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