Verification of a potential client of a financial institution is a key element of the cash allocation process. What is the borrower verification procedure?
When looking for a loan, we usually reach for the internet offer, quick and easy access to individual products allows you to familiarize yourself with the procedures in force in a particular company.
How do loan companies verify the customer?
Many of us use the ranking of popular loans and wonder what determines a positive decision, how the procedure goes and whether it requires sharing data and documents.
For the loan company, meticulous customer verification is a key security for the funds granted. The basis is our personal ID data . Usually, in the process of applying for a loan in installments, we send a scan of an ID document that allows you to verify the authenticity of the applicant’s data.
Most often, institutions apply the requirement for a verification transfer. It consists in transferring a symbolic amount of 1 groszy or 1 dollars to the indicated internet account of the loan company from the borrower’s personal account. This stage of checking is to confirm the compliance of the sender’s transfer data with the data of the person applying for funds.
Despite the fact that the customer declares no debt in the form, the next step in verifying the borrower is to check the applicant in the available databases of the Credit Information Bureau, Economic Information Bureau and the National Debt Register. However, this does not apply to online loans without verification, loans without BIK, in their case the money is awarded without checking the financial reliability. Sometimes a scan of the employment contract, retirement or disability pensions, bank statement is required.
Additional methods to check the borrower
Some companies decide to authorize the customer’s identity via an sms text message sent to a phone number or message sent to our email address.
Due to the fact that this type of check may raise doubts, personal telephone contact of a company employee with a customer is more often used. During the interview questions about family status and professional situation, current financial situation as well as current and current debts are asked.
What is the most common reason for rejecting an application?
One of the most common reasons for negative consideration of an application is our status in the debtors’ records. The lack of financial stability directly affects the credibility and assessment of debt repayment options.
Why is borrower verification important?
A wide range of possibilities for a loan company to check the client is a collateral for the payment of cash to a person who has the real intention and possibility of paying off the debt.
For the customer it is also a greater guarantee of the security of the transferred data, which will not be used later without our knowledge and consent.