When applying for a loan, completing your KYC (Know Your Customer) is an important step. It assists lenders in verifying your identification and financial information, preventing fraud and ensuring the accuracy of the data you submit. By fulfilling all requirements, a thorough and transparent KYC procedure also facilitates loan disbursement.
Some individuals face delays or rejection in loan KYC by committing common mistakes. You can increase your chances of receiving the loan and prevent issues by being careful when you submit your KYC information.
1. Incomplete or Invalid Documents
Many people make the mistake of submitting invalid or incomplete documents during the KYC process, which often leads to rejection. This happens when important details, such as identification proof or income documentation, are missing or incorrect. Without these documents, the process cannot not proceed further. It leaves the applicant uncertain about what the next step will be in the process. Before submitting anything, the applicant is advised to re-confirm almost everything just to prevent some mistakes.
2. Mismatch in Personal Details
Rejection can result from any discrepancies between your official documents and the information you submit. Also, small inaccuracies, such as misspelt names or inaccurate birth dates, can raise concerns. Ensure every detail you submit matches exactly against your corresponding government-issued identity and all other official documents to avoid this. A little check will save you from the unnecessary delay.
3. Bank Account Not Linked to Aadhaar
In India, a bank account must be linked to your Aadhaar number to complete the KYC process. If the account you provide isn’t linked, your verification could be rejected. Ensure that you've connected your Aadhaar to your bank account prior to uploading your KYC documents. Not only does it streamline the KYC procedure, but it also ensures quicker future access to a range of banking services.
4. Not Updating Contact Information
When applicants do not update their contact information such as phone numbers or email addresses. Lenders may not be able to reach you for important updates due to outdated contact information, which can result in frustration, processing delays or even application rejection. To avoid these problems, ensure your contact information is current and easy for the lender to reach.
5. Mismatch Between Salary Slips and Bank Statements
Individuals can face problems during the KYC process when the salaries on their pay stubs differ from the bank deposits. This disparity may result from different payment methods, errors, or unaccounted deductions. Hence, to avoid any hustle with easy submission of your slips for a simple KYC procedure, be sure to match all salaries with bank deposits.
