There might arise a situation where you need a hefty sum of money, and your savings are not adequate to cover your financial requirements. In such a scenario, the best thing to do is to apply for personal loan to meet your monetary needs.
A personal loan is one of the most sought-after loans in India. The reason being that you can use a personal loan for any purpose such as marriage, education, payment of bills, medical needs, and so on. With a personal loan, you can get funds without pledging any collateral. However, as a personal loan is an unsecured loan, it involves a strict verification process which might differ from lender to lender.
Given below are the stages of personal loan processing in India.
Stage 1. Personal Loan Application
Like every other loan, the process of a personal loan also begins with the application. You can go for a personal loan online or apply offline by going to your lender’s nearest branch. Applying for a personal loan online saves you time and is far more convenient. You can easily find the application form on the lenders’ web portal.
Stage 2. Document Submission
After the lender receives your personal loan application, you will be contacted to submit your KYC documents. The KYC documents help verify a borrower’s identity, age, address, and income. Given below are the documents required.
Identity-proof and proof of residence
- Aadhaar Card
- Voter ID
- Passport
Income documents
For a salaried employee-
- A copy of your bank statements for the last six months reflecting your salary credits and other income
- An Employment Certificate stating one year of continuous employment
- Salary slips for the last three months.
- IT Returns along with Form 16
For self-employed-
- IT Returns for the previous two years
- Balance Sheet and Profit and Loss Statement
- Proof of business income, such as Bank Account Statements for the last six months.
Stage 3. Document Verification
Once the lender receives your documents, the personal loan verification process is initiated. The primary verification points are your identity and address. Your lender might verify these by sending a representative over to your home.
To check your employment details, the lender might send a representative to your office. With the help of your salary slips, the lender will determine your loan eligibility. Most importantly, your lending institution will also check your credit score. Verification of your other documents such as Aadhaar Card, Passport, etc. is done through authorised portals.
Stage 4. Disbursal
Once the verification team sends a favourable report, the lender starts drafting your personal loan agreement that includes the terms and conditions, interest rate and loan tenure. If you are satisfied with the contents of the agreement, you will have to sign them and send them to your lender. After you have signed the agreement, the loan amount will be credited to your bank account.
The personal loan process has become quite simple and convenient with online processing. When looking for an instant personal loan, always pick Tata Capital. They offer personal loan for self-employed and salaried-individuals at competitive interest rates.
Tata Capital also provides a personal loan EMI calculator on their website to help you plan your EMIs accurately. To get an instant personal loan, check your personal loan eligibility, compile the documentation correctly and fill the application form.
So, what are you waiting for? Apply for personal loan with Tata Capital today!