What happens if my Personal Loan documents do not match my KYC records?
KYC helps lenders better understand their customers and their financial patterns. KYC also helps prevent fraud, identify money laundering, and help manage risks prudently. For Loan procedures, KYC helps to establish a customer’s identity and legitimacy, which is essential to avail financial services. Once you apply for a Loan or any other financial product, you are required to complete the KYC procedure.
The lender verifies the information provided by you in the Personal Loan documents. The verification process can take anywhere from a few minutes to a few hours to complete. Once it is done, the financial institution will go ahead with providing the product you have requested. Whether you apply for a Personal Loan to buy a house, a car, or use the funds for other purposes, the process needs to be completed to get your Loan approved.
Why is KYC necessary?
KYC is another step in the Loan process, but do not underestimate its power. A successful KYC submission is your green light to getting funded faster, with fewer hiccups along the way. Today, lenders are investing in smoother, more innovative KYC processes. And as a borrower, all you need to do is come prepared, stay honest, and hit that “submit” button with confidence. Consider KYC to be your financial identity verification process.
Lenders must authenticate you before granting you access to credit, just like airport security do before allowing you to board a plane. It serves as both a safety precaution and a legal mandate, acting as a tool to prevent fraud. All lenders in India are required to implement KYC by the RBI.
Completing the KYC procedure is a must, whether you are applying through a digital lending platform. It guarantees that the borrower is authentic, traceable, and accountable.
What happens when there is a mismatch of information?
In case the information provided in the Personal Loan documents required does not match that of the Loan application form, your lender may ask you for more proof or reject your application. Some standard documents they require include:
- Identity proofs
In this aspect, the documents provided are to confirm the legitimacy of the customer. Documents required for this purpose include: Aadhaar, voter ID card, driver’s licence, passport, PAN card, any document issued by the State or Central government in your name, ID card of affiliation with any college or professional institute, and your Debit or Credit Card with your name as proof.
- Address proofs
A person’s address is vital for verifying the customer’s identity as well as the place of residence. It helps assess the risk situation accurately. Documents required are a voter’s ID, a driving licence, or a passport. You can also submit your registered sale agreement. Please provide your electricity, maintenance, or telephone bill that includes your current address. The bills shall not be older than 3 months for accurate current data.
- Income proofs and bank statements
Salaried individuals need to submit salary slips of the past 2-3 months. Self-employed individuals must provide proof of income, such as audited financial statements, ITR, etc. The past six months’ bank statements need to be provided.
Conclusion
These are basic documents for a Personal Loan. Remember that, depending on the product and the lender’s policy, additional documents may also be requested.