Personal loans are one of the most sought-after loans in India. People take personal loan for various reasons like wedding, home renovation, festive related expenses, or to clear existing debts. However, personal loans fall under the unsecured loans category. This requires stringent document verification process. Verification process widely differs from bank to bank. The process of personal loan verification from the bank's perspective is as follows:
If you are planning on applying for a personal loan to meet your financial needs, go ahead and have all your documents ready. This will expedite the loan verification process.
Credit score - This is a major factor in deciding whether your loan application will be approved or rejected as it represents your creditworthiness. Applicants with a high credit score usually get personal loans at competitive interest rates. Those with a poor credit score may face loan rejection.
You can submit your Aadhaar card, PAN card, Passport, Voter's ID card, and Driving License as proof of identification. You will have to provide recent passport-size photographs along with the filled-up loan application form.
Salaried applicant - Employment ID card, last 3-6 months' salary slips, IT Returns with Form 16 of last 2 years, bank statements of last 3-6 months, etc. can be provided as proof of income. Self-employed applicant: Balance sheet with profit & loss statement, business ownership certificate, partnership deed, bank statements of last 3-6 months, IT Returns with Form 16 of last 2 years, etc. can be provided as proof of income.
Aadhaar card, utility bills like telephone and electricity bills, PAN card, Passport, Voter's ID card, ration card, etc. can be provided as address proof of residence or place of business.
The rejection criteria of a personal loan application vary with lenders. If an applicant fails to meet the eligibility criteria set by the lender, then the loan application will be rejected, such as:
You can follow up on the status of your personal loan verification process by calling the lender's personal loan customer care department.
Multiple personal loan rejections will have a negative impact on your credit score as lenders make a hard enquiry into your credit history every time you apply for a loan.
Kankana Mukherjee is an engineer and has over 4.5 of experience in content writing. Combining the expertise in financial content writing achieved in her 2 years association with BankBazaar, and a knack for clear and engaging content, Kankana simplifies complex financial concepts and offers practical insights to help readers make informed decisions and achieve financial success.
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