Customer Identity Verification Policy

1. Purpose of KYC

The KYC Policy at LoanSetu aims to prevent fraud, identity theft, money laundering, and misuse of financial services. Every customer is verified before availing any loan product.

2. Customer Identification

Essential identity and address documents are collected from all applicants. Verification is done through online e-KYC, in-person checks, or government-approved digital platforms.

3. Mandatory Documents

• Government-issued ID (Aadhaar, PAN, Passport, Voter ID)
• Proof of address (Utility bill, Aadhaar, Rental agreement, Passport)
• Recent photograph
• Additional documents based on loan type and risk assessment

4. Verification Methods

KYC verification may include digital e-KYC, document uploads, third-party checks, and physical verification when required to ensure authenticity.

5. Ongoing Monitoring

LoanSetu monitors customer transactions and loan activities periodically to detect unusual behavior or discrepancies in declared information.

6. Risk Assessment

Customers are categorized as Low, Medium, or High risk based on income profile, repayment history, occupation, and transaction patterns to comply with RBI standards.

7. Data Privacy & Security

All KYC documents are stored securely. Customer information is protected from unauthorized access and handled in compliance with data privacy regulations.

8. Record Retention

KYC records are maintained as per legal requirements. Periodic updates ensure accuracy and compliance with regulatory standards.

9. Compliance

This policy aligns with RBI guidelines and other regulatory authorities to promote transparent, lawful, and ethical lending practices. Employees such as Riya Sharma and Arjun Mehta are trained regularly on KYC compliance and best practices.