It may happen that your savings are not enough to meet your needs. Even if you do, it is not a good idea to spend all your savings at once. Wasting all your savings at once may increase potential financial risks in the future. Saving will not provide you with a financial guarantee. So what if you need money right away in addition to your monthly expenses? In this case, using a personal loan is a wise choice.

Stages of Personal Loan Process

Thanks to the rapid integration of this technology with the financial sector, you can now take advantage of your loan faster online. You can apply for a personal loan by visiting the website of the online provider. To apply for this loan, you only need to fill out a form. The processing speed is fast and your loan will be approved within an hour. However, there are 4 stages of the personal loan process, which we will discuss here.

Personal loan application 

To start processing a personal loan, you must fill out an application form, which can be easily found on the online bank portal. The form must be filled in with all the correct information. Part of the form contains columns that provide your personal information, such as your name, address, age, the company/organization you work with, and your contact information, such as your mobile phone number and email address.

Submitting documents 

After receiving your application, the lender will process your application. Before that it requires you to provide KYC documents. 

Generally speaking, the lender needs the applicant's KYC documents to identify and provide evidence of identity, age, address, and income. 

ID Card/Proof of identity 

• PAN card 
• 2 passport photos 
• Aadhar card 
• Voter ID 

Proof of address 

• Passport 
• Registration of lease agreement 

Proof of income. 

• Monthly salary slips 
• Bank statement for 3 months 
• ITR statement and Form 16

Personal loan document verification process: 

The personal loan verification process starts after the lender receives all your documents. The lender will first check your creditworthiness based on the documents you provide in your file. 

• The most important verification point is your identity and address, which are given in the form. 
• Second, the lender verifies your employment and income information with your employer and bank. 

• Document verification such as PAN card, Aadhar card, or passport is carried out through an online process, which simplifies the entire process. 
• If the lender determines that your documents are authentic and you meet the eligibility criteria, they will send you a confirmation email or letter.

Loan payment: 

This is the last step of personal loan inspection. At this point, the lender will write you a loan agreement, which includes your loan terms, interest rate, and the repayment period after which they approve your loan. Finally, if you are satisfied with all of this, you will eventually need to sign these documents and send them to your lender. After completing this process, the loan amount will be transferred to your account within a few minutes.  

However, it is always recommended that you carefully abide by all the terms and conditions contained in the agreement before signing the agreement, otherwise it may cause problems in the future. The personal loan process is quite simple, but online processing makes the whole process convenient and easy for applicants.