We can get caught up in situations that require immediate financial assistance. Personal loans are perfect for individuals requiring urgent funding. Since a personal loan is unsecured, borrowers do not have to go through additional checks. There is a dedicated process in India to secure a personal loan. No lender will provide a personal loan without verification and credit investigation. Borrowers must be aware of the process to secure a personal loan. Some lenders might make the loan approval process complex for borrowers. However, one can get a hassle-free personal loan with Fullerton India in 2023. Read on to understand the different stages of personal loan application processing.
Different stages of personal loan application processing:
Submitting the personal loan application
The first step is to submit the personal loan application to the lender. However, one must do a few more things before submitting the loan application. One must first find the right lender to secure a personal loan. Unregistered lenders will not be transparent and apply extra charges on loans. EMIs might increase suddenly due to hidden charges added by the lender. Luckily, Fullerton India is available to offer personal loans at affordable rates and no hidden charges. Many people around the country enjoy personal loan instant approval with Fullerton India.
Once you have chosen a lender, it is time to complete the application. The personal loan application process can be started on the online portal of Fullerton. It is crucial to note that the loan application must be duly filled out before submission. There’s no point in putting inaccurate details in the application. If the details are incorrect, the lender will reject the personal loan application after investigation. The application will include personal information like name, age, occupation, employer name, and address, among other things.
Submission of the required documents
After an applicant submits the personal loan application, the lender starts processing it. As the applicant’s application moves forward, the lender needs some original documents to ensure accurate details have been provided. Similar to the loan application, applicants can submit the required documents online. You will have to upload the original documents of the required documents in digital format on the lender’s online portal.
It is crucial to note that no one will ask for a processing fee for a personal loan at this stage. Also, the type of documents required for personal loan approval might change from one lender to another. Here are some standard documents required for personal loan approval:
- ID proof documents like PAN Card, Aadhar Card, and voter ID
- The lender for a personal loan might demand two/three passport-size photographs
- Documents like a passport or rent agreement might be required for address proof
- Salary slips, bank account statements, and ITR documents might be asked as income proof
Once the lender has received all the documents, it is time to verify them. The lender goes through each document and determines their authenticity. If the required documents are authentic, the applicant is eligible for personal loan instant approval. At first, the lender will go through the ID proof documents. As the process progresses, the lender might contact the applicant’s employer to double-check the income details. Lenders also count on software solutions to check the authenticity of PAN cards, Aadhar cards, and other documents.
The verification process does not only include cross-checking the documents. It also involves a credit investigation for the applicant. The credit score, credit history, repayment capacity, creditworthiness, Debt-to-Income (DTI) ratio, and other factors are analyzed. For example, an applicant with low credit ratings will not likely pay back the personal loan on time. Lenders count on credit investigation to determine whether the applicant should be approved.
Disbursal of the loan amount
Once everything is cross-checked and the lender is satisfied, it is time to disburse the loan amount. The lender will notify the applicant that their loan application has been accepted, and the amount will be disbursed. Some lenders also allow loan applicants to track the status of their applications anytime.
The lender will ask for the bank account details of the loan applicant. The approved personal loan amount is directly disbursed into the applicant’s bank account. Some lenders deduct the processing fee for personal loans from the approved loan amount. Fullerton India is apt for people searching for affordable personal loans. Start your personal loan process now!