Loan Application Process
The core process is similar across banks — what varies most is how fast each step moves and how strictly documents are checked.
Step-by-Step, With Typical Timelines
- Check eligibility against the lender's income, age, and credit score criteria before applying — a same-day check.
- Compare offers across 2–3 lenders on interest rate, processing fee, and prepayment terms — a day or two of research.
- Prepare documents (see checklist below) — can take a few days if you need to request bank statements or salary certificates.
- Submit & verification — KYC, employment, and credit checks typically take 3–7 working days for salaried applicants, longer for self-employed.
- Offer letter & disbursal — once you accept terms, disbursal usually follows within 2–5 working days for personal loans, longer for secured loans requiring property valuation/legal checks.
Document Checklist
- KYC: PAN card, Aadhaar, passport-size photos
- Address proof: utility bill, rental agreement, or Aadhaar
- Income proof (salaried): last 3 months' payslips, Form 16, 6 months' bank statements
- Income proof (self-employed): 2–3 years' ITRs, profit & loss statement, business proof
- For secured loans (home/car): property documents or vehicle quotation/invoice
Common Rejection Reasons
- Low CIBIL score (typically below 650) — the single biggest cause.
- High FOIR — your existing EMIs already use up too much of your income for the lender's comfort.
- Income-document mismatch — declared income doesn't match bank statements or ITR.
- Incomplete or inconsistent documents — mismatched addresses or names across documents.
- Job instability — very recent job change or short employment history.