Personal Loan Underwriting Explained By Loan Singh

Personal loan underwriting is very important

We started this week with an ‘Introduction to Loan Singh’. We did this to answer the numerous queries we receive regarding Loan Singh. Frequently asked questions are, “What is the process at Loan Singh to avail a personal loan?” and “Which KYC documents are needed at Loan Singh?”. Some queries that get answered via the Loan Singh Finance Blog are:

We than started explaining credit lending terminology, starting with – “What is the meaning of Pre-approved Personal Loan?”. Today, however, we proceed to the next phase in the Loan Singh personal loan approval process – Credit Underwriting, which is a critical aspect of any credit lending process.


Preapproved Online Personal Loan

Loan Singh digital lending platform is set-up in such a way that the borrower’s personal information, financial information and social authorization, are evaluated digitally; basis which his/her creditworthiness is calculated. Loan Singh then decides if the loan is to be approved, or not.

No bank statement photocopies, no attested documents, no reference forms and no heaps of application forms are needed. With no time wasted in the documentation, this mode of personal loan disbursement is faster and quicker than that of traditional credit solutions.

No human intervention in the loan application process allows for better streamlining. With the number of documents down to just PAN Card, Aadhaar and Bank Statement PDF (that too fetched from your netbanking account), you save your precious time instead of going around accumulating multiple documents and attestations needed by traditional lending institutions, such as banks.

Using technology, Loan Singh is able to serve the underserved salaried individuals. Loan Singh’s mission is to improve on traditional banking process pain-points such as delay in loan approval; a lengthy time taken in credit assessment (if there is no credit history) and disbursement. With ‘Digital India’ encouraging Indians to make use of various digital payment modes, the idea to avail an online personal loan has become a reality, as well.

Loan Singh does not meet the borrower face-to-face like banks do. Everything from loan application to amount disbursement is done online. To mitigate the prospect of risk, Loan Singh assesses your creditworthiness using your credit report. If you have a good credit history, you have a better chance of avoiding a loan rejection.

The borrower’s credit score/credit rating indicates how prompt you have been with your past credit obligations. Availing a personal loan, via Loan Singh, is advantageous because there is minimal paperwork involved. So, no time is wasted in cross verifying any paperwork.


Personal loan underwriting is very important


Personal Loan Underwriting

To perform an underwriting promptly and successfully, we need certain details to get the underwriting algorithm to provide us an accurate score. We will only be able to serve you better if you tell us who you are, where you live, how much you earn and similar other simple questions. We have prepared a neat and simple form for you to fill.

The process that sits in-between ‘pre-approval’ and ‘final decision’ is that of ‘personal loan underwriting’. Being a premier digital lending solution/platform for underserved salaried individuals, Loan Singh prides on its thorough and impartial personal loan underwriting process to chaff out the truly deserving applicants, and provide them with quick and easy online personal loans.

Now, coming to your personal loan underwriting, it is a process wherein Loan Singh analyzes the information provided by each applicant. The data & financial information are verified, analyzed and summarized to paint an image of your credit worthiness. You can call underwriting as a credit analysis that precedes the loan approval.

Underwriting is not only done for credit purposes of individuals, but can also be done for commercial or business entities. The evaluation here consists of financial information provided by small businesses – including analysis of their balance sheet, tangible net worth, ratio of debt to worth and possible liquidity. The output here is preparation of an income statement highlighting revenue trends, gross margin, profitability, debt service coverage, and more. Underwriting also features in other domains such as corporate bonds, commercial paper, government securities, resale to investors, etc.

Coming back to Loan Singh, the credit underwriting team is tasked with reviewing each and every piece of financial information pertaining to the thousands of applications we receive daily. As our platform is digital in nature, the bank statement has to be provided in PDF format only. The underwriters look at how prompt each prospective borrower has been with his/her credit responsibilities. Approval is only possible if the applicant can demonstrate successful loan repayments on time.


The personal loan criteria to be eligible on Loan Singh are:

Have the right age

– Be at least 21 years of age, and of Indian nationality.

You have to be salaried

– Be a working professional with a minimum monthly salary of Rs.15,000

Good credit history

– You should have a good credit history, a good credit utilization ratio and a balanced credit mix. In case of no credit history, you must at least be salaried for the last 3 months.

Provide your financials

– Provide your latest 6 months bank statement in PDF along with PAN and Aadhaar. Remember to provide the bank statement in the PDF format only. If not, then like a spanner thrown in the works, the algorithm won’t be able to give us the desired output.


Loan Singh Application Process

Get started page – Select ‘PERSONAL LOAN’ from the drop-down and enter the loan amount with the desired repayment tenure.

Registration page – Add your contact number, personal email ID, and corporate email ID

Social authorization – Connect to your Facebook, Google+ and LinkedIn profiles, to avail a discounted interest rate.

Profile page – Fill in your name, gender, Father’s name, number of dependents, and PAN details. We use your PAN Card Number to check your Credit Score.

Address page – Choose your type of residence, and mention your street address, city, state and pin code.

Job profile page – Mention your current designation, total work experience, company name, highest qualification, last institution attended, and monthly salary.

Financials page – Upload your latest 6 months bank statement (in PDF format) either from your computer, GMail account or directly link your net-banking account. Our net-banking partner is ISO 27001 (2013 standard) certified & provides services to established banks, as well.

Auto debit page – Provide permissions to your bank name, account number, and IFSC code so that Loan Singh can auto debit the EMI amount from your account every month. This way you don’t need to set reminders or miss out on any loan EMI payments.


Loan Underwriting Process

The above details go into a credit evaluation algorithm (Loan Singh’s Proprietary) that uses electronic identification procedures to verify your identity. The program helps identify any fraudulent tampering with the bank statement.

Your credit bureau report, tells us about any hard inquiries pulled-up against your name along with your repayment history with other credit institutions. This is why the bank statement you upload has to be in PDF format only. Everything is done digitally – with no human interaction. This removes the possibility of impartial tampering at our end.

The algorithm then calculates your credit worthiness based on all the information that goes into it. As a responsible lending solution, Loan Singh tries to find the best loan amount for you keeping in mind your regular spending habits.

Underwriting Output

Based on a proper underwriting process, one of 3 outcomes are possible.

Personal Loan Approved

Your personal loan is approved if your repayment history, income and credit score are all favorable to the underwriting program.

Personal Loan Rejected

At the other end of the spectrum, poor credit score, inconsistent or abysmal repayment history, too many debt consolidations, etc. give us no choice but to reject your personal loan application. With no collateral for availing a personal loan, your credit history is the most important factor that can get your loan approved.

Incomplete or Fraud

In case any fraud or misleading information is detected, the application will be outright rejected. In case there is incomplete information provided by the borrower due to latency or ignorance, our operations team makes efforts to contact the borrower to find out why the application is incomplete.


Loan Singh is a digital lending platform that prides in providing online unsecured personal loans to salaried individuals. You can apply for quick funds as an easy emergency loan which is not a bank loan, but are provide with best personal loan interest rates. The instant funds, or instant loans, are small loans taken for purposes such as home improvement, house repair, marriage/wedding, medical, second-hand car, second-hand bike, vacation and travel. You can calculate your easy EMIs using our personal loan EMI calculator. We accept bank statement, PAN and Aadhaar for quick loan approval. A bad credit score or credit report errors can lead to personal loan rejection. The ‘Loan Singh Blog’ is one of the best finance blogs in India.

Loan Singh’s Online Presence

Loan Singh is not an anonymous digital platform. We are present on almost all leading social media platforms. All you need to do is look for us. Some destinations you can find us on are:

Loan Singh in Latest News

The year 2017 had been a breakthrough year for Loan Singh. Mention of partnership with Airtel helped Loan Singh to work harder in the space of digital economy. Some snippets of Loan Singh can be found on…


Leave a Reply

Your email address will not be published. Required fields are marked *