Formal modeling and verification is techniques have been used to give the reliability and accuracy of more then one systems to be verified. In contrast to normal testing techniques which exhibit the presence of flaws and errors in a system, formal methods prove their absence. Loan approval services have become very popular with the mounting development in the information and communication technology. Due to the presence of difficulties, an loan approval system requires an efficient security model. One important approach to comfort the reliability and security of the loan approval system is through the use of formal methodologies and this task, the work display a checking approach where the utilization of advances is naturally confirmed by the application by associating with the CIBIL reports and bank exchanges by contrasting the exchange substance and the adjoining information. Along these lines, it prompts proficient administration of advance endorsements to stay away from extortion confirmation.