Unsecured loans provided by the banks without taking any collateral security are known as personal loans, albeit some PSU banks may insist on a guarantor. Personal loans are taken for various purposes ranging from marriage to holidaying or to buy a luxury product of your choice or any sort of medical emergencies. Bottom line, the banks don’t consider the reason important as long as it doesn’t involve speculative trading.
For getting the best low interest personal loan, you need to undergo the following process
Make sure to have all the necessary documents in order. The types of documents required are given in the section below. There are other certain document specifications required, depending upon the bank you apply to.
Your loan application along with your documents will be submitted to the bank for approval.
Upon receiving your loan application, the bank initiates a verification process by appointing a third party agency. Customers are expected to cooperate during the entire process; any sign of non-cooperation (i.e. locked house, wrong information submitted, etc.) may result in the rejection of your loan application. Based on the information gathered, a positive or a negative report will be sent to the concerned bank.
Upon receiving a positive report, the bank will review your application after due consideration of the documents you have submitted. In case of any additional documents required, it will be communicated to you prior to approval.
The bank will perform a final checking of approved files, agreements, cheques etc. if everything is proper, a delivery order will be issued. In case of any mismatch in signature or address proof, the delivery may be delayed until further modification. Loan approval is to the sole discretion of the bank, which is why one needs to avoid the following in order to ensure greater chances of loan approval. Although these aren't the only reasons, the major contributing reasons for rejection are: