Technology has made it very easy for phony applicants to provide fake documents for loan applications, thus the need for Banks to engage external agencies with forensic skills (like Field Investigation Agencies, Risk Containment Units or Background Verification Companies) has arised.
Although banks have access to Credit Information Bureau (India) database (i.e., Cibil database) it is limited to existing borrowers only, whereas field investigative agencies or background verification companies have been in this business for long and have much more to offer. Their professional expertise helps banks differentiate between genuine customers and fraudsters at the stage of data verification itself.
Physical visit to candidates (Current / Previous / Permanent) address is done.
Involves checking the veracity of candidates claim about his / her previous employment records with the HR or reporting manager.
It involves telephonic verification about the candidate’s integrity, behavior and character.
Involves verifying the status of the company (Proprietorship/ Partnership/Private Limited /Limited) through government sources, Income Tax return and Balance Sheet.
Physical visit to Guarantor’s (Current / Previous / Permanent) address is done.
Involves verifying the guarantor’s source of income documents.
Is conducted to undisclosed criminal history (if any) of the candidate in the jurisdiction where he / she currently residing or had resided. The verification can be undertaken either through local police station or the district level Commissioners Offices.
