Customer identification is crucial and serves an essential purpose while acquiring any financial instrument. For instance, financial institutions can effectively limit money laundering and reduce financial crime with accurate identity verification. In this regard, the Reserve Bank of India made a mandatory step of completing KYC (know your customer) to verify a borrower’s credibility.
According to the RBI’s report, during FY 2020-21, the country witnessed around 229 financial crimes every day. Moreover, the overall fraud amount accounted for is Rs. 1.38 lakh crore.
Apart from knowing about KYC briefly, individuals must know the different processes of KYC verification, documentation, and more.
Processes of KYC verification
As already stated above, KYC is a provision that allows financial institutions to verify customers’ identities and connect details with the concerned instrument. As per the prevention of money laundering act, 2002, verification of KYC is essential, which means that individuals can’t perform any transaction or avail offerings without furnishing necessary documents.
Moreover, the advantage of EKYC is another effective instrument for customers onboarding that financial institutions depend on. You may be thinking about what is EKYC and how is it processed. To answer this question, read on to know the processes–
Step-wise process of E-KYC verification online
For online verification, individuals have two ways- Aadhaar OTP and Aadhaar-based biometric KYC. The former is simple and the quickest and can be completed within minutes. Here is an overview of how online KYC verification is processed –
Step 1- At first, visit the official website of KRA
Step 2- Create your account with personal credentials
Step 3- Submit your Aadhaar number and registered contact number
Step 4- Input OTP for verification
Step 5- Create a self-attested copy of your E-Aadhaar and upload it
Step 6- Accept the terms and conditions
On the other hand, with the Aadhaar based process, there are certain steps, and they are –
Step 1- Again; visit the official website of KRA
Step 2- Follow the KYC steps mentioned above
Step 3- Choose the option of the online biometric authentication option
Step 4- Wait for a representative to visit the address mentioned above
Step 5- Input biometric verification
Step 6- Furnish authentic documents and wait for the KYC approval
Online KYC verification can take less than 24 hours if the documents are accurate and verified, whereas the offline process consumes considerable time.
Since KYC is necessary to avail financial services, start investments or avail financial products, such as personal loans and more, it is essential to verify EKYC beforehand.
Process of offline KYC verification
This process also entails specific steps, but in this case, customers need to furnish a physical copy of the necessary documents. In addition, they need to submit documents, such as ID proof, residence proof, and more, on the respective website. Failing to produce these documents is one of the mistakes to avoid while applying for a personal loan.
Here are some steps to complete offline KYC verification –
Step 1- Download or collect a KYC form from the concerned financial institution
Step 2- Fill the form carefully with authentic PAN and Aadhaar details. Also, attach the copy of the required documents with the application form
Step 3- Search for your nearest KRA and submit the form
Step 4- Besides submitting the identity proof, individuals need to go through a biometric scan
Step 5- After completing this process, individuals will receive an application number that can be used in the future to track the application status.
Verification of these details can take substantial time. However, one must note that this period differs based on the authenticity of your details filled in the application form. Hence, filling in the details carefully is crucial while applying for a personal loan.
Documentation of KYC
When it comes to KYC verification, the government follows a strict procedure and categorises them into two parts –
- PAN card
- Aadhaar card, driving license, passport
- ID card with photo certified by Central/ State/Statutory/Regulatory body
- ID card verified by public service of financial institutions
- ID card certified by affiliated colleges or universities
- Ration card, Voter ID, passport, insurance, etc.
- Utility bills
- Financial statements
- Residence proof verified by notary public, parliament, gazetted officer, etc.
Apart from noting the list of documents required for KYC verification, individuals must also know about the important documents required while applying for a personal loan.
To ensure a hassle-free KYC verification process, individuals can approach leading financiers like Bajaj Finserv and complete it without any complication. Besides, they also extend pre-approved loan offers on a wide range of financial products, such as personal loans, business loans, credit cards, etc. Such offers significantly expedite the loaning procedure and reduce the hassle of extensive documentation. Customers can check their pre-approved offers by mentioning their essential credentials.
Therefore, make sure to verify your KYC before proceeding with any financial service or transaction to avoid discrepancies in the long run.
CIBIL Score Checking using PAN Number: How to Do it
PAN Card serves as a reliable means of identifying an individual. It is linked to most of an individual’s financial and banking accounts, facilitating easy access to their information by credit bureaus. The PAN number makes it convenient for the credit agencies to locate and gather details about an individual’s financial standing and also individuals can freely check CIBIL score online.
To ensure that your CIBIL score stays in good standing, managing your credit responsibly is important. This includes paying your bills on time, keeping your credit card balances low, and limiting the number of new credit applications. It’s important to regularly check CIBIL score by pan card free online India to ensure that the reported information is accurate and up-to-date. If you notice any errors, you should report to CIBIL as soon as possible.
Steps to Check CIBIL Score by PAN Card
The steps to free check CIBIL score are straightforward. You can utilize the official Bajaj Finserv Credit Pass service online and fill out a form with your details. After filling the complete document, you can view your CIBIL score. It’s recommended to free check CIBIL score at least once a year to stay informed of any changes and make any necessary corrections.
How Does A PAN Change Affect CIBIL Score?
Multiple PAN cards can lead to confusion in your credit history and negatively affect your CIBIL score. This is because your credit score is determined by your credit history, which is linked to your PAN card. Having multiple PAN cards is illegal and it also led to a split in your credit history, resulting in a lower credit score. If your PAN card is lost or stolen, applying for a duplicate card will not affect your CIBIL score as long as your PAN number remains the same. It is recommended to surrender one of your PAN cards if you have multiple and to avoid applying for a new PAN card unless it is necessary, as this can potentially impact your CIBIL score.
Benefits of Checking Credit Report Regularly
Be aware of your actions influence your credit score
Practicing a free check CIBIL score is valuable for managing your finances effectively. You can gain insight into how your financial behaviour affects your credit standing by monitoring your score. This information allows you to identify factors that may lower your credit score and take steps to avoid them. They will then investigate the matter and make any necessary corrections to your report.
Ensure Accuracy of Information
An error or inaccuracy in your credit report can negatively impact your credit score and it is a crucial factor that lenders consider when determining your creditworthiness. If you notice any errors or inaccuracies in your credit report when doing a free CIBIL score online, take immediate action to correct them.
Improve Loan or Credit Card Offers
By free checking CIBIL score online, you can stay informed about your current financial standing. With this knowledge, you can assess if you are considered a low-risk borrower and determine your eligibility for new credit. The interest rate and approval for a loan or credit card are largely based on your credit profile. A high credit score can provide numerous benefits, including access to better credit facilities with competitive interest rates, attractive rewards, and other perks.
Factors Affecting Your CIBIL Score
- Bad Payment History
Failure to make EMI payments or repeated late payments can harm your CIBIL credit score. To keep a good CIBIL score, it’s important to make timely EMI and credit card payments consistently.
- Multiple Hard Enquiries
Lenders evaluate your credit report by making a hard inquiry when considering lending. Excessive hard inquiries within a short time frame can suggest a high-credit-seeking behaviour, increasing your risk factor. This may result in rejection by some lenders or being offered high-interest rates.
- High Credit Utilisation
A high credit utilization ratio or frequently maxing out your credit card can lower your credit score. To maintain a good credit score, it’s advisable to keep your credit utilization at 30% or lower of your total credit limit. Demonstrating responsible credit usage indicates a low likelihood of default.
It is extremely important to regularly monitor your CIBIL score, especially when you are planning to take out a loan or apply for a credit card. Your CIBIL score plays a crucial role in the loan or credit card approval process, as it is one of the major factors considered by lenders and financial institutions. A high CIBIL score indicates a strong credit history, while a low score can negatively impact your chances of getting approved for a loan or credit card. It is crucial to check CIBIL score by pan card free online India, as even small mistakes can negatively impact your score.
7 Tips to Get a Mortgage Loan Successfully
Understanding the concept of mortgage loans before applying for one is a wise step. A mortgage loan is a type of loan given to borrowers when they pledge their assets as collateral. The lender reserves the right to sell off the borrower’s property and reclaim the loan amount with full interest when the borrower fails to repay the loan on time.
Mortgage loans are a way to raise money against the value of a property you already own. Mortgage loan interest rates vary from lender to lender, with some lenders charging a higher rate of interest as compared to others. Before applying for a mortgage loan, keep a few things ready to ensure your mortgage loan application is successful.
7 Tips to Get a Mortgage Loan Successfully
Here are a few tips to help you successfully apply for a mortgage loan with a lender charging the most viable rate of interest.
- Know the exact value of your property
You can only apply for a mortgage loan when you own property, be it a flat, a plot or a house. Consult a real estate developer within your locality to know the exact worth of your property. Mortgage loans are generally 60% of the total worth of your property. You will have a fair idea of the money you are about to receive and the amount you have to repay with interest.
- Have a strong credit score
Before any loan application, lenders check the credit score of the loan applicant. Make sure you have a clean credit report and your credit score is higher than 750. This increases the chances of your loan application being approved. You can find out your credit score on various portals and if it is lower than expected, work on improving it before applying for a mortgage loan.
- Arrange all the documents
The loan applicant needs to submit a few documents along with his mortgage loan application. Check the documents required on the lender’s website and keep them ready when applying for the loan. It will save your time and help you get a positive and early response on your loan application.
- Compare the loan offers of various lenders
The rate of interest is not the only parameter one should consider when applying for a mortgage loan. There are other costs involved along with interest charges. A loan from two lenders, charging the same interest rate, may have different effective costs. It is due to the other costs associated with the loan, such as loan processing fees and foreclosure charges on the loan. Compare the loan offers from various lenders and apply with the lender offering the best deal and a transparent loan process.
- Consider the type of loan you want
Lenders charge two types of interest rates on a mortgage loan. The first one is the fixed interest rate, where the interest rate on the loan remains the same for the loan’s life. The second is the floating interest rate, which is market linked and keeps on changing. A borrower can consider getting a mixed interest rate, which remains constant for some time and then switches over to the floating mode.
- Apply for special offers
Lenders offer special discounts on mortgage loan interest rates during festival seasons, Independence Day, and the new year. You can apply for a loan when the special offer is on. It will help you get a loan at a lower interest rate and better repayment terms. Lenders may also be a little lenient during these special offers, increasing your chances for loan approval at such times.
- Read the loan agreement document carefully
Do not be in haste while loan application. Read the loan agreement document carefully and in detail. It will help you ensure that you meet all the requirements of the lender. It will also save you from surprises later on.
With these tips, a person can plan his mortgage loan application and improve the chances of their loan application. Be prompt with your communication with the lender so that you do not miss out on crucial details.
Need Instant Personal Loan in Kolkata: Know How to Apply
Most financial institutions intended to provide better services have adopted innovative digital technologies to serve consumers. They provide personal loans through simple digital procedures and Insta Loan Apps.
Resultant, you can apply for a Personal Loan in Kolkata or from any city in India with minimal documentation formalities at any point in time. You can avoid documentation-related burdens and get timely funds in your hour of need. Here is the guide explaining how to apply for an instant personal loan.
Eligibility for Personal Loan in Kolkata
It is crucial to analyse your loan eligibility before making a loan application. A personal loan applicant needs to meet varying eligibility conditions with different lenders regarding age, salary or income, work experience, credit score and others. Common eligibility parameters with renowned NBFCs are as follows:
- You should have a credit score of 750+, which is easily maintained if you make every EMI or credit card bill on time.
- The maximum EMI should be limited to 65% of the applicant’s income.
- The age limit is 21 – 60 years.
- The minimum salary for personal loan eligibility is Rs. 20,000 for Kolkata.
- The total work experience required is 12 months and in the current organization is six months.
Documents Required for Personal Loans
In this digital era of FinTech services, individuals can get a personal loan against minimal documents. Individuals prefer a lender offering a personal loan that can be completed through an eKYC process against minimal documents. It will save time and effort. The applicant needs to submit the following documents for an easy online personal loan application:
- ID Proof
- Signature Proof
- Residence Proof
- Bank statements for the previous six months
- Salary slips for the previous three months and ITR or Form 16 (for salaried persons) OR Business proof, ITR, and balance sheet for the previous two years.
Compare Lenders for the Best Personal Loan Interest Rates
The interest rate offered on a personal loan is an important aspect that loan applicants must be concerned about. A personal loan can provide you required funds against an affordable interest rate to overcome any financial trouble. It is easy to compare the lenders for the best personal loan interest rates in this digital age of financial services. You should take a calculative decision for the loan tenure to lower the interest rates. Your loan eligibility will impact your interest rate with a financial institution.
Apply for a Personal Loan with Flexible Repayment Tenure
A financial institution offering a personal loan with flexible repayment tenure is considered best by most individuals. It allows them to repay the loan at their convenience. You may have to fulfil your financial requirements that can’t be timed; therefore, many lenders offer flexible repayment tenure from 12 to 60 months. Find a suitable tenure for your loan repayment.
Steps to Apply for Personal Loans in Kolkata
You can avail an instant personal loan in Kolkata by following these steps:
- Download the InstaLoan app on your Smartphone from Google Play Store.
- Register using your mobile number.
- Start the application process. Input the personal details – name, marital status and residence.
- Enter your employment details or business details.
- Provide your PAN and submit your personal loan application.
- The lender will check your submitted information digitally and approve the instant cash personal loan as per the algorithm used in the app.
- You can proceed with the loan amount and the repayment tenure.
- Verify your KYC documents and then your bank account details.
Your final instant personal loan application will be processed. If you satisfy all the eligibility parameters and document requirements, you will get the approved funds instantly in your bank account. This way, your instant personal loan in Kolkata can be approved within a few minutes.
What Benefits An Instant Personal Loan in Kolkata Offers
- Better Flexibility: With 60 months of repayment tenure, instant personal loans are highly flexible. You can apply for a loan catering to your changing financial requirements at different stages in your life.
- Multi-purpose Loan: From wedding functions and vacations to buying the latest phone, laptop, home theatre, washing machine, and so on, you can use the loan amount for any personal or business purpose. An amount of Rs. 25 lakhs can easily be availed as an instant personal loan.
- Completely Digital: The loan applicant need not submit documents in paper form using the InstaLoan app. The loan processing will be started with your Aadhar and PAN number only in Kolkata.
- No stringent eligibility criteria: There are no stringent eligibility criteria to get a personal loan online. If you have a high credit score, the lender can look at your application with a lower income and process your loan.
- Zero collateral: You can get as high as Rs.25 lakhs against a personal loan application without collateral or a mortgage to get the loan.
To enjoy such privileges with a personal loan, you just need to download the InstaLoan App and complete the loan processing online.
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