Before extending a loan to the customer, the loan application passes through various stages, which are:
a. Collection of all required documents from the customer. In the first place, the lender verifies the authenticity of documents.
b. Check past repayment behaviour in his/her credit report.
c. Visit office or residence or both. It is known as CPV, PD or PV in the lending industry.
d. Confirm customer phone number through calling random times in a day.
e. Use other credit policy parameters (age, residential area, geographical limit) & loan eligibility calculator to arrive on the final loan amount.
f. Final decision (approval or rejection).
g. Approval is followed by disbursement.