A financial emergency can hit any time—a sudden hospitalisation, a natural calamity or even an unexpected celebration at short notice.
While cash savants state you should have a backup stash equivalent to a half year’s costs set up, not every person adheres to this standard persistently.
A loan application procedure is complete only when the document verification is successful. Be it any type of loan, an applicant has to provide all the necessary documents as per the requirement. It process can be online loan or even offline loan. The importance of documents is different depending on the type of loan. In the case of unsecured loans such as personal loans, income proof, and salary slip are given the highest priority. On the other hand, for secured loans such as home loans and loan against property, property papers are of utmost importance.
These days, the online loan is a boom with many MFIs and SMEs coming into picture. the technology makes it easy to fasten the process of loan disbursement. eKYC and, digital signature or eSign helps to verify the candidate.
E-KYC is a paperless confirmation methodology. It connects the Aadhaar card with Know your Customer worldview and helps in the validation. As the verification takes some odd hours, Loan sanctioning and disbursement turns out to be simple. It has additionally decreased the misrepresentation hazards occurring to a great extent. Not exclusively can eKYC help in advance authorising and payment yet in addition in the kickoff of new financial balances essentially.
Esignature not so well known, yet the digital signature have demonstrated to be a shelter as an aspect of the loan sanctioning processes. The digital signature is nothing but an electronic signature which is safer and furthermore connects your finger impression to the character. digital signature ensure there are no fakes and the fingerprints are saved for all time on the database.
Most lenders ask for the latest six months of bank statement. This is practised to know your customers financial side.
How will a lender get to know that all the assets mentioned in the loan application belong to you, i.e. you have paid for them? This is verified from your bank account statement. They want to know how much money you have in the bank, and how long it has been there.
Lenders use your bank statement to calculate the average monthly balance maintained by you. Higher the average monthly balance, more controlled are your expenses. The EMIs paid on all your existing loans and advances will also be checked in your bank statement.