Income and employment verification is a check that confirms a borrower really works where they say and earns what they say. The check takes the data directly from the source, such as the employer's payroll system, instead of from a salary slip that the borrower uploads.
A salary slip is easy to fake. Anyone can edit a PDF and change ₹35,000 to ₹65,000. So lenders want the information from a source that the borrower cannot change.
The software connects to that source through an API, a defined way for one program to request data from another program. There are three common sources. The first is the employer's HRIS and payroll system, which records each employee's salary and joining date. The second is the employee's provident fund record, which shows which employer paid into the account each month. The third, for creators and gig workers, is the platform that pays them, such as a video site or a delivery app. In each case, the borrower first gives consent, usually by logging in to the source and approving the request.
Here is a typical case. A software tester in Bhubaneswar applies for a ₹3 lakh loan and states a salary of ₹62,000 a month. The lender's app asks her to connect her employer's payroll account. She logs in and approves. Within a minute, the software returns her employer's name, her joining date four years ago, and her net salary for the last six months: ₹61,800 each month. Her stated income is confirmed. The result goes to the lender's credit decision engine.
The same check is used outside lending. Background verification companies use it when a candidate joins a new employer, to confirm past jobs. Earned wage access (EWA) providers use the payroll connection to know how much salary a worker has already earned this month. And under an income share agreement, a student pays the course fee only after getting a job, so the provider must confirm the job.
This check is different from bank statement analysis. A bank statement shows the money that arrives in the account. Verification confirms who paid it, and that the borrower really works there.