In India, Personal Loan is one of the most popular ways to get money. It is an unsecured loan, which means you don’t have to put up anything as security to get it. Piramal Finance’s verification process for personal loans is set up in a way that makes the whole process easy for eligible applicants. Whether you apply for a personal loan online or in person at one of our branches, the steps below will ensure you get your money quickly.
Step By Step Process of Getting Personal Loan Verified
Take a look at the five steps that are usually followed to verify a personal loan:
Step 1: Loan Application
The person who wants money must ask the lender for a personal loan. You can apply online for loans from many lenders today. You will be given an application ID after you send in the loan application form. You can check on the status of the application using this application ID.
Step 2: Online Decisions
Many lenders will tell you right away if they can consider your application based on your location, age, CIBIL score, etc. Piramal Finance makes this kind of decision within a few minutes of receiving an online application. Note that this step could take a few days if you want to apply for a loan in person.
Step 3: Documents Collection
When the person sends in the loan application, the bank starts asking the person for documents. The lender could send someone to get the papers or ask the person to bring them in person to the office. For a personal loan, you will usually need the following documents:
- Passport size photograph
- A passport, driving license, voter ID card, government id card
- PAN cards, or Aadhar cards, are all kinds of identification.
- Statements of accounts: most recent payslip with salary data.
- Tax returns from the last 2 years
- Account bank data, most recent power bill, latest mobile bill.
- Monetary statements or bank passbooks with data from the last six months.
Step 4: Verification of Documents
Once the lender has all the necessary documents, they send them to the verification department to start the process. Most lenders have a dedicated team that handles their verifications.
- Online verification
Most government documents, like PAN cards, Aadhaar cards, and passports, are checked online through their online portals.
- Offline Verification
The verification team goes to the person’s house to ensure that the address is correct. The team could go to the person’s workplace to see if the person does work there. The verification team may also ask about your salary or how long you’ve worked for that company.
The verification department puts together all the information from the verification system. It sends it to the personal loan agent in charge of that account. The loan will be processed if the lender is happy with the verification process results.
If the lender isn’t happy with the verification process results, the loan request will be turned down. But the lender will tell the person why it was turned down so he can fix any mistakes he made.
Step 5: Loan Disbursal
This is the last step in the process of verifying a personal loan.
To get this closer to being finished, the loan agreement is written. This is done after you agree to the loan’s duration and the interest rate on the personal loan the lender gives you. The time it takes to pay back a loan is usually between 12 and 60 months.
This agreement has all the important information, like the amount of the loan, how long it takes to pay it back, the interest rate, any fees or charges, and the terms & conditions of the personal loan. Before signing the agreement, it is a good idea to carefully read the terms and conditions.
After you and the lender both sign the agreement, the personal loan is usually given to the person within 2-3 days of service. When you get a loan from Piramal Finance, the money goes straight into your bank account within 30 minutes.
Whether or not you will receive a personal loan depends on your credit. You can check this by looking at your pay stubs, your tax returns, and your CIBIL score. If your credit score is at least 750, it will be easier to get a loan quickly.
Things To Keep in Mind When You Apply for a Personal Loan
There are many things you should consider while applying for a personal loan. These are given below:
Check Costs & Fees
Personal loans are subject to several fees. This includes management fees, foreclosure expenses, etc. You can be prepared to pay such charges later if you search for them in the loan agreement or on the lender’s webpage.
Review The Foreclosure Guidelines
Lenders usually charge foreclosure costs. They do this by returning a property purchased with borrowed funds since the funds were not repaid as agreed. You should carefully check the foreclosure guidelines to decide how long you have to settle the loan and the costs involved before you apply for a personal loan.
Think About Your Current Debts
Consider your current debt when you apply for a personal loan. Consider your debt-to-income ratio to decide if you will truly have enough money to repay the loan you want. You can apply for a personal loan if your debt-to-income ratio is under 30%. If it is greater, you should consider other borrowing choices.
When you apply for a personal loan, you get a lot of freedom to handle your finances well and pay for any unexpected costs easily. If you intend to apply for a personal loan, have all your documents ready. This will speed up the verification process of personal loans.
For similar blogs like this, you can visit the Piramal Finance website and explore their products and services.