Home » Steps to Verify your Lender Before Taking a Personal Loan

Steps to Verify your Lender Before Taking a Personal Loan

by Nathan Zachary
Personal Loan

With the increase in online transactions, there has been a significant rise in online fraud in the financial segment. There are various instances of misuse of the data and information of the customers. However, new-age lenders have strict rules for such transactions. The data of customers is safe with its secure and reliable network. You can always visit the nearest branch or reach out to them in case of any queries or grievances.  

To avoid any mishaps, before your loan requirement, you should always check factors with personal loan eligibility checker. With secure and reliable networks, borrowers are assured while they are applying for a Personal Loan. As a borrower, you can apply for a Personal Loan to fulfil your personal needs such as funding your higher education, wedding expenses, tackling emergency expenses, renovating your home, travelling to your favourite destination, etc.

Here are a Few Steps to Verify Your Lenders before you Fulfil your Personal Loan Requirement:

  1. Lenders’ Website

You will find all the information on the internet which is the first place you must visit when you are searching for a loan. A lender with a good website will provide you with entire information about the company and the entire loan-related information like approval and disbursement process and most importantly Personal Loan interest rate & other fees transparently. On the lender’s website, you will find information such as company identification number, certificate of registration, information about the management, and products and services the lender is offering. 

  1. Loan Approval Process

Terms such as quick loan approval are used by all lenders offering a loan. Fraudulent lenders target gullible borrowers with seemingly lucrative terms and could misuse the borrower’s personal and financial information. They might also advertise a Personal Loan minimum interest rate and make a lot of exceptions in the fine print so that your interest rate will effectively go up if you sign up for the loan. Hence, it makes sense to read the fine print details carefully before you finalize a lender for your Personal Loan requirement. 

  1. Physical Address 

Every lender must have a physical registered address with contact details such as telephone number, email address, and postal address. In case you don’t find these details about the lender, there is a high chance that the lender could be fraudulent. 

  1. Check the Reviews 

Today, you can find reviews for every possible entity. With easy access to the internet, customers tend to put reviews about their service experience on various websites, buying experiences, and products. While selecting a lender, you can check for online reviews about the lender. The number of positive and negative reviews will act as one of the deciding factors for the selection of the lender. 

Things You Should Know Prior to Applying for a Personal Loan 

Today, there are various lenders that are offering Personal Loans. Hence, comparing all the lenders prior to applying for a Personal Loan is a must. Here are a few things that you should consider before applying for a Personal Loan:

1. Check interest rates provided by different lenders.

2. Check the eligibility criteria and select one that is compatible with you.  

3. Verify all the additional costs such as professional fees and penalties.

4. Calculate your monthly EMIs using an online EMI Calculator provided by the lender.

5. Lastly, compare and evaluate all the terms and conditions to plan your repayment.

While you are applying for Personal Loan, you must verify the above. It helps you in planning your repayment as any delay or late payment impacts your credit score negatively. Before signing the documents, you must check important factors including interest rate, tenure, EMIs, additional fees, and charges. 

What are the Documents Required for a Personal Loan?

Different lenders have different Personal Loan requirements, but the documentation process and list of documents are quite similar. Here are a few of the documents that are tentatively required while you are applying for a Personal Loan. 

  • KYC documents like Aadhaar/PAN Card
  • Current address proof (Passport/Utility bills/Rent Agreement)
  • Latest salary slips and salary credit bank statements from the last 3 months
  • Proof of employment, such as official mail ID confirmation /Emp ID Card

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