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A BRIEF ON LOAN PROCEDURE

Posted on Wednesday August 7th, 2019

If you look back to a decade ago, there was no quick and straightforward procedure of loan. Everything had to be done in person. The applicant had to pay several visits to banks and waste innumerable hours. But things have now changed you can now Apply For Loan Online. It is more hassle-free and less time-consuming. You can apply for a loan in just an hour. You need to provide the necessary documents accurately.

An essential part of applying for the loan is to specify the requirement for a loan and the exact amount needed. This helps you lend the correct amount. It is better if you research and study all the conditions of the bank on loans and the benefits before you apply.

Steps to apply for loan are:-
• Step 1 – Fill the spaces for your personal, employment, and financial details.
• Step 2 – Submit the processing fee.
• Step 3 – Select the exact amount of loan required. With this, you have to specify the tenor that you will need to repay.
• Step 4 – Discuss with your bank.
• Step 5 – Attach the required documents to the representative.
• Step 6 – Wait for the approval of the loan.
• Step 7 – The final Disbursal and Agreement.

Documents required for the procedure:-
Once you have filled up the application, you have submitted some papers with the application. A bank needs the below documents for –
• 1 – To verify your authenticity.
• 2 – To know your financial condition.
• 3 – Lastly, to check if you are eligible for the loan and whether you will be able to pay back or not.

The documents you will need are –
• Income proof. –
ITR of current three years.
Annual accounts
Bank Statements
Salary Slips
Form 16 or 16A

• Address proof. –
Driving license
Voter Id
Passport
Aadhaar card
Ration card

• Age proof. –
Pan Card
School or college transfer certificate
Passport
Voter Id
Driving license
Ration card

• Identity proof. –
Passport
Voter Id
Driving license
Ration card
Aadhaar card

• Employment details and papers. –
Address of the company
The business sector
Number of employees
Nature of the company
The turnover and profit of the company
Number of branches
Company’s customers
Company’s competitor

• Educational proof. –
School certificate
College certificate
Diploma certificate

• Bank Statements.
The bank statement is asked to produce by the bank to check activities, average balance, bounced checks, the periodic payments, and its consistency, your investments.

If you are applying for a home loan, you will be asked to produce the details of your property.
Once, you have finished all the processes you will have to wait for 1 or 2 days to get your documents checked and your loan sanctioned by the respective bank. The bank will verify the following facts about you –

Current residential address
The company where you are employed
Credentials of your employer
The contact number of your workplace
The contact number of your residence

A representative from the bank will pay a visit at your house to authenticate information provided by you. The bank even checks other references to verify the facts.