Loans can help us get out of a dreadful financial situation. For acquiring a loan, the first thing is to search for a reliable lender. Then, after checking the eligibility requirements, borrowers must submit the loan application. A loan application can be submitted online or offline, depending upon the lender. Usually, traditional loan providers require people to submit a paper-based loan application. However, with the rise of digital lending platforms, people can submit loan applications digitally within minutes. Clix Capital is among those lenders that allow you to submit the loan application in digital format.There are different loan application statuses with different meanings. Read on to learn the meaning of different loan application statuses
The loan application will contain details like the applicant’s name, address, monthly income, age, and other fields. The loan application is accompanied by documents like the Aadhar card, PAN card, salary slip, bank account statement, and address proof. After submitting the loan application, the lender takes some time to process it. Loan providers analyse the applicants’ credit score, loan history, occupational status, income stability, creditworthiness, and repayment capacity.
After analysis of each applicant, the loan provider takes the appropriate decision. Most people think that the loan application is either approved or rejected. Well, these are only two statuses of the personal loan application. Different loan statuses are displayed depending on the condition of the loan application. For the same reason, borrowers make their loan applications strong and boost the chances of approval. Let us understand the different statuses of the loan application.
Loan Application Statuses: An Overview
Approved status means the loan application is accepted and ready for the funding process. The applicants will be informed shortly via call, email, or message. It means that all the documents submitted by the applicant are authentic and updated. Then, the disbursement process will begin, and the loan amount will be credited to the applicant’s bank account.
Applicants don’t want to see it among the loan application statuses. It means the loan application is rejected, and the loan provider will take no further action. It can happen due to a bad credit score, loan history, or other reasons.
Sometimes, applicants do not fill out the loan application in its entirety. For example, someone can miss the section where the permanent address is asked. Not submitting all the documents will also lead to an incomplete loan application.
It means the original request of the applicant has been rejected. However, a new offer has been passed, and the loan provider will contact the applicant shortly. Sometimes, lenders might decrease the requested loan amount or tenure. In such a condition, a counteroffer is proposed to the loan applicant.
Most people believe that the declined status is the same as rejected. The loan provider will contact you shortly if the loan status is declined. When the loan application does not match the underwriting norms, declined status is displayed. The reason for the declination of the loan application is conveyed to the applicant.
Sometimes, the lender takes more time than usual to process a loan application. If the Personal Loan application form is waiting, check back after a few days. Applicants don’t have to keep checking every hour to approve the loan application. Lenders inform the applicants via call or SMS after the loan application has been approved.
Need More Info
Sometimes, lenders do not discard the loan application due to incomplete details. The lender asks the applicant to submit more info in such a case. The loan application is automatically cancelled if missing details are not provided within 10-15 days.
Some lenders show the loan status as pending instead of waiting. Pending status means the application is under review, and the loan provider will take a further call after completing the verification process.
Apart from the above statuses, some lenders do display customized loan statuses. However, all loan statuses will give you a clear indication of the current condition of the loan application.
An individual submits the loan application online/offline to acquire a loan. Several documents accompany the loan application. However, the lender can accept or reject the application depending upon its completeness. With the help of loan statuses, lenders let the applicants know the condition of their loan application. Check your loan application right away!