Individuals can avail same day loans by following some quick and easy steps. The person applying for the loan must fill up a particular form provided by the lender body and then wait for the approval. The amount sanctioned by the lender after reviewing the documents gets credited to the individual’s account generally the day after filling the application. The next day must be a business day and not a weekend or holiday. It is called the same day loan, but the money gets disbursed on the next working day of the bank or the lending institute.
Loan approval to personal loan disbursal can take several weeks to only a few minutes, and the process depends on the lender. The peer to peer and online lenders have the ability to approve any loan for an individual in a few minutes whereas few credit unions and banks might take a bit longer as to a week or two.
Things That Are Considered By A Lending Institute Before Providing Loan
Every lending company and institutions have their own set of rules and regulations for lending money. However some of the factors like the income of the individual, credit score, history of previous loan repayments, etc. are some of the most common factors that are taken into consideration by most lenders. The chances of approval of the loan increases when a person has a relationship with the lender company or the bank. The verification process helps the lender to decide whether the borrower will get the loan or not. These same day personal loans are unsecured loans and do not require any mortgaged property or any other bonds for lending money. The lender is therefore always at a risk of their borrowers absconding with the loan amount or defaulting on the loan, thus they cross-check several times before confirming any application. They demand a list of documents to analyze and learn about the applicant and then take any final decision.
Below are some of the most common documents that an applicant is required to submit irrespective of who is the lender company or the bank and the place where they are located
- One passport size photograph must be attached with the loan application
- Valid identity proof of the borrower that is a passport, voter ID card, driving license or PAN card.
- A proof of the applicant’s residence, for example, the passport, ration card or any utility bill in his or her name.
- Age proof in the form of a passport, driving license, voter ID card or PAN card.
The Financial Documents Required For Loan Application Verification Are As Follows:
- Individuals who are self-employed- They must submit last one year both current and savings bank statement.
- Individuals who are salaried- The bank statement of 6 months, form 16 and last three-month salary slip.
Documents That Are Checked By A Lender In Case Of A Salaried Person
- Any ID card like passport, voter ID card, driving license or PAN card for verification of the identity of the applicant or borrower.
- Anyone from Passport, Ration card or utility bill for proof of residence.
- A document containing age of the applicant for age proof like Pan Card, voter ID card, passport or driving license. These documents will have the original age of the applicant printed on them for the lender to verify.
- Income proof in the form of salary slip of three months and Form 16.
- The last six months bank statement.
- A passport size photograph.
- An experience letter and the appointment letter from the current employer to prove the continuity of the job.
- Sanction letter and track record of payment for previously taken ongoing loans.
Documents That Are Checked By A Lender In Case Of A Self-Employed Person
- Identity proof of the borrower in the form of any one document like passport, voter ID card, pan card or any other similar ID proof document.
- Residential proof like passport, ration card utility bills, etc.
- Age proof of the applicant in documents that have the date of birth printed on it.
- Address proof of office like a utility bill, property document or maintenance bills.
- Proof of office ownership that can be verified from the maintenance bill, property document or electricity bill.
- The existence of business proof like the establishment of the shop or three-year-old salary statement.
- Income tax return proof for a minimum of two years. This must of the latest two years.
The same day loan lenders cross check all these documents and also match them with the real documents before taking the photocopy of each document. Then the officials verify them thoroughly before approving the loan application of an applicant.