Usually, when a person thinks of getting a loan, a petrifying thought of protracted loan procedure also accompanies. This is not the case with personal loans. Granted within a few days, personal loans are pretty straightforward without any cumbersome paperwork or complicated documentation. Personal loans are provided by various banks and NBFCs (Non-Banking Financial Companies) at an accomplishable personal loan interest rate to provide financial support to an individual with their particular needs.
HDFC Bank provides various personal loan options catering to the specific requirements of the borrower. HDFC Bank personal loan policy avails the facility of personal loans at the interest rate starting from 10.75% and with minimum Equated Monthly Installments (EMI).
All of the banks and NBFCs (Non-Banking Financial Companies) have more or less the same procedure, but personal loans have a more simplified process. The stages involved in getting a personal loan are as follows:
1. PRE-QUALIFICATION -
The potential borrower is required to submit all the necessary documents such as
identity proof, income proof, and residential proof, along with the credit report. The credit report plays a vital role in convincing the lenders that the borrower can handle the loan repayments. The lender will evaluate the documents and initiate the process.
2. APPLICATION PROCESSING -
After the documents have been submitted to the lender, the borrower needs to fill out an
application form. This personal loan application form is available in paper format as well as online on the banks or NBFCs (Non-Banking Financial Companies) website. The application, along with the documents, is assessed for its accuracy and completeness. The borrower is expected to provide correct information without any misrepresentations. In case the application is considered to be incomplete, or the information mentioned in it doesn’t check out, the form is either sent back or rejected. The potential borrower will be intimated about the same.
3. UNDERWRITING AND QUALITY CHECK-
In this step of the process, the lender verifies your income, assets, debts, and other related details of the borrower to issue the final approval of a personal loan. Granting a loan is a highly regulated process that demands the loan application and final decision of granting the loan to be cautiously thought through and all the critical variables to be considered again before giving the loan.
4. PERSONAL LOAN SANCTION AND DISBURSEMENT-
The final step is where the lender sanctions the personal loan amount and informs the borrower about the same through a sanction letter with the details of the personal loan. Within a few days of the loan being sanctioned, the amount gets disbursed to the borrower’s account after the loan agreement has been signed. The loan agreement has all the details, including Principal amount of loan, guarantees, personal loan interest rate, duration/tenure of the loan, default terms, and foreclosure terms.
It may take up to a few days for the banks and NBFCs (Non-Banking Financial Companies) to complete this process and provide the borrower with the facility of the personal loan. Meanwhile, all a borrower needs to do is provide the required information as and when needed and be patient.
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