Finance

Getting a loan can feel like navigating a maze, but it doesn’t have to be confusing. Let’s break down the entire journey into simple steps so you know exactly what to expect. Step 1: Application Submission This is where it all begins. You fill out a loan application form with basic details like your name, income, employment, and how much money you need. Most banks now let you do this online, which takes about 15-30 minutes. What you’ll need: ID proof, address proof, income documents (salary slips or bank statements), and details about what you’re buying (if it’s a home or car loan). Step 2: Initial Screening The bank does a quick check to see if you meet their basic requirements. They look at your age, income level, employment status, and credit score. This usually happens within 24-48 hours. Pro tip: Your credit score matters a lot here. A score above 750 significantly improves your chances. Step 3: Document Verification If you pass the initial screening, the bank asks for detailed documents. They want to verify everything you’ve claimed – your income, your employment, your address, and your identity. Common documents include: Last 3-6 months’ salary slips 6 months’ bank statements Form 16 or IT returns Property documents (for home loans) Business proof (for self-employed applicants) Note: The list of documents provided is not exhaustive. Depending on your profile and specific case, institutions may request additional documents. This stage can take 3-7 days depending on how quickly you submit complete documents. Step 4: Credit Appraisal Here’s where the bank does the heavy lifting. They analyze your financial health in detail: Income vs. Expenses: Can you afford the Equated Monthly Installment (EMI)? Credit History: Have you repaid past loans on time? Debt-to-Income Ratio: How much of your income already goes to other loans? Stability: How long have you been in your current job? The bank uses all this information to decide how much risk you pose as a borrower. This typically takes 5-10 days. Step 5: Property Valuation (For Secured Loans) If you’re taking a home or car loan, the bank sends someone to check the property or vehicle. They want to make sure it’s worth the amount you’re borrowing. For home loans, a technical expert visits the property to check its legal status, construction quality, and market value. This can take 7-15 days. Step 6: Legal Verification (For Home Loans) The bank’s legal team verifies all property documents to ensure there are no disputes, the seller has clear ownership, and all approvals are in place. This is crucial because the property becomes the bank’s security until you repay the loan. This step usually takes 10-15 days and is often the longest part of the process. Step 7: Loan Approval Once everything checks out, you get the magical “loan approved” message! The bank sends you a sanction letter stating: Approved loan amount Interest rate Tenure (repayment period) EMI amount Terms and conditions Important: Read this document carefully. This is your contract with the bank. Step 8: Signing the Agreement You visit the bank to sign the loan agreement and other legal documents. You’ll also need to: Pay processing fees (if not paid already) Submit post-dated cheques or set up auto-debit for EMIs Arrange for a guarantor (if required) Sign property mortgage documents (for home loans) Step 9: Insurance Most banks require you to take insurance to protect the loan. For home loans, you’ll need property insurance and often life insurance too. For car loans, comprehensive vehicle insurance is mandatory. Step 10: Disbursement Finally, the money is released! But the disbursement method varies: For Home Loans: Under-construction property: Money is released in stages as construction progresses Ready property: Full amount is transferred to the seller after registration For Personal/Car Loans: Amount is transferred directly to your account or the seller For Business Loans: May be released in parts based on your business needs After Disbursement Your loan journey doesn’t end here. Now begins your repayment journey: EMIs start, usually from the next month You receive a loan account statement You can track your loan online Keep all documents safe for future reference How Long Does the Entire Process Take? Personal Loans: 2-7 days (fastest) Car Loans: 7-15 days Home Loans: 3-6 weeks (or longer for under-construction properties) Business Loans: 2-8 weeks depending on complexity Tips for a Smooth Journey Keep documents ready: Having everything organized speeds up the process Maintain a good credit score: This is your financial reputation Be honest: Don’t hide information; it will come out during verification Respond quickly: Answer bank queries promptly to avoid delays Compare options: Check rates and terms from multiple lenders before applying Common Reasons for Rejection Low credit score (below 650) Insufficient income for the requested loan amount Too many existing loans Irregular income or job changes Incomplete or fake documents Legal issues with the property The Bottom Line The loan approval process has multiple steps for good reason – the bank wants to ensure you can repay the loan, and you want to ensure you’re getting a fair deal. While it might seem lengthy, each step protects both you and the lender. Understanding this journey helps you prepare better, avoid surprises, and increase your chances of approval. So gather your documents, check your credit score, and start your loan journey with confidence! Looking for Hassle-Free Loan Solutions? If you’re ready to begin your loan journey with a trusted partner, Ashwini Finance is here to help. As an RBI-registered NBFC, we understand that getting a loan should be straightforward, not stressful. Why Choose Ashwini Finance? ✅ Trusted NBFC – RBI registered and compliant ✅ Quick Approvals – Fast processing with minimal delays ✅ Expert Guidance – Professional support at every step ✅ Customer Focused – Your financial goals are our priority ✅ Minimal Documents – Simple, hassle-free documentation ✅ Secure Process – Your information is safe with us Our Loan Services Include: New Car Loan Two Wheeler Loan Pre-Owned Car Loan Medical Equipment

It’s 1 AM. I’m scrolling Instagram, half-asleep. A cooking reel. A meme. Then suddenly a 60-second video explaining compound interest that actually makes sense. I save it. Two days later, I open my first investment account. This is how we learn about money now. Not in classrooms. But between cat videos and dance challenges. And honestly? It’s working better than anything school taught us. Let’s Talk About the Elephant in the Room Most of us in Gen Z have no clue about money. Like, actually no clue. I’m not talking about advanced strategies. I’m talking basics budgeting, credit scores, how interest works. Stuff our parents assumed we’d just… know? The harsh truth from FINRA Foundation: Two-thirds of us can’t answer basic financial questions. We’re scrolling apps all day but can’t figure out where our salary disappears by the 15th. The consequences are real: College fees doubled (Bureau of Labor Statistics) Buying a house feels impossible Half of us don’t make enough to live the life we want (MoneyFit, 2025) Millennials are drowning in education loans The weird part? We grew up with smartphones. We can debug code, edit videos, build brands on social media. But emergency funds or credit cards? Blank stares. Why We’re So Bad With Money (And It’s Not Our Fault) Money doesn’t feel real anymore. When did you last hold cash? Everything’s UPI, everything’s digital. Money is just numbers moving between apps. Our parents learned by physically handling it , counting notes, saving coins, watching mom bargain. We? Tap a screen. Transaction done. No connection. Plus, school taught us calculus but not taxes. Periodic table but not credit scores. They forgot the one subject we’ll use every single day. The Plot Twist: We Found Our Own Teachers Since school failed us, we went to social media. And it’s actually working. PYMNTS Intelligence says: 4 out of 5 of us get financial advice from Instagram, TikTok, and YouTube. The Federal Reserve Bank found we trust Instagram for money advice more than banks. A 25-year-old with a ring light explaining compound interest through memes makes more sense than a banker using words like “amortization.” #MoneyTok has exploded. Instagram Reels about budgeting get millions of views (DemandSage, 2025). We watch 200 billion Reels daily—many teaching us about money. These “finfluencers” break down scary concepts into bite-sized, entertaining content. They speak our language. They’re in hoodies saying “yo, here’s how I paid off my credit card.” The catch: Not everyone online knows their stuff. PYMNTS found some of us overspend from social media hype, worse -fall for scams. “Double your money in 30 days” stuff. Instagram is teaching us finance. But we gotta be smart about who we trust. How to Actually Get Better With Money Real talk. Here’s what helps: Use Social Media Smart Follow people with actual credentials. Look for clear explanations, sources, real qualifications. Red flags: “Get rich quick” promises, expensive courses, “secret” tricks. Make It Fun Apps that gamify saving work because they don’t feel like work (ScienceDirect says 40% better): Acorns rounds up purchases and invests Greenlight/GoHenry for younger siblings Modak pays you to walk Start With What Matters Forget crypto for now. Master these: ✓ Budget – Know where money goes (Mint app) ✓ Emergency fund – Save for when life hits ✓ Build credit early – Need it for loans, apartments ✓ Avoid stupid debt – High interest credit cards ✓ Start investing – Even ₹500/month grows Talk About Money Out Loud Global Financial Literacy Excellence Center found people who discuss money make better decisions. Normalize it: “I overspent this month” or “Let’s both save ₹10,000 this quarter.” The 50/30/20 Rule 50% needs (rent, food, bills) 30% wants (fun stuff) 20% savings/investments Credit Cards Aren’t Evil GWI research: Only 10% of us carry balances. But many avoid cards completely, hurting credit scores. Smart move: Get card → use for small stuff → pay off monthly → never spend what you don’t have. Good credit = better rates = saving lakhs on loans. Do This Right Now (10 Minutes) Download budgeting app (Mint/YNAB) – 2 min Check credit score (BankBazaar, free) – 2 min Set up auto-save ₹500/month – 3 min Follow 3 legit financial educators – 2 min Unsubscribe from shopping emails – 2 min Total: 11 minutes. Impact: Your entire financial future. The Bottom Line Financial literacy in 2025 looks different. Learning from 60-second videos? Valid. Gamified apps? Smart. Starting with ₹500/month? Better than zero. Traditional advisors are being replaced by 25-year-olds with ring lights explaining money through memes. And we’re learning faster because of it. Yes, there’s bad advice. Yes, there are scams. But there’s also unlimited free knowledge that’s actually entertaining. We’re the first generation learning finance through social media. We’re figuring it out. Making mistakes. Learning publicly. And we’re gonna be fine. Your future self -debt-free, saving consistently, sleeping peacefully-will thank you for starting today. The 60-second journey starts now. Sources FINRA Foundation (2024) | Bureau of Labor Statistics | MoneyFit (2025) | LIMRA (2024) | PYMNTS Intelligence (2024) | Federal Reserve Bank of St. Louis (2025) | CFA Institute | DemandSage (2025) | Mastercard (2025) | ScienceDirect (2024) | GWI (2025) | Global Financial Literacy Excellence Center (2023) Full links: finrafoundation.org | bls.gov | moneyfit.org | pymnts.com | stlouisfed.org | cfainstitute.org | mastercard.com | sciencedirect.com   Start today. Your future self is counting on you.