A loan can help you pay for the things need for other purposes when you don’t have money.
Availing a loan is not an easy process as it was started earlier.
It is a very lengthy and complicated process for many people. The lenders nowadays refer to a person CIBIL score to provide the loan.
Unless you don’t have credit card history, the lenders may reject the loan application or provide you with the loan at a higher interest rate
Loans have made our life very easier they provide us for financial leverage, home loan, personal loan, auto loan etc.
In India getting a loan is a little difficult process you should provide proper credit card history if you want to get your loan amount in the time that you wanted.
Also, remember not to get frauded by the message of do you want loans coming out as SMS and some random people calling out you and asking out for a loan. If you want loan go to the bank you wanted and ask for them details regarding it.
That’s the reason why we are saying that before getting a loan from any kind of bank know the common process of how loans are approved once after approval how its processed everything regarding and this post is all about things related to the Bank loans.
And by the end of the post, you’ll get a clear idea on how loans are approved in 2020.
Understand your credit
You generally need credit to get a bank loan. Credit cards play a major role in the enhancement of loan approval process.
This means built a credit before you get a loan.
Determine the type of bank loan
The type of bank loan depends on,
- Auto loan for buying vehicle
- Home loan for buying home
- Personal loan, which can be used for almost any purpose
- Business loan for starting or expanding your business
- A student loan for educational purposes
- Fast loan for quick cash
What does a bank check broadly
- CIBIL score and report
- Employment status
- Account details
- Payment history
- EMI to income ratio
Apply for loan
You are ready to get your bank loan once you have
- Spruced up your credit
- Settled on a loan amount
- Picked the best type of loan
- Shopped the competition
- Run the numbers
Also, checkout Problems Faced by People During Online Banking
The reason if you can’t get a loan
- Negative items on a credit card report
- Problems with your income or debt to income ratio
- Other personal attributes
Know more about Investment Banking
Loan approval process
When you apply for the loan this is what happens
- You fill in the loan application form
- You hand it over to the bank or lender
- Bank or lender check’s with the CIBIL for credit score and credit report
- Low credit score leads to rejection for the loan
- High credit score leads to eligibility check based on the document you have submitted
- Non-eligibility leads to rejection of the application
- On meeting the lenders or bank eligibility criteria, the lenders or bank will approve the loan
Documents for loan
- Identity proof
- Address proof
- Proof of employment
- Income proof