Lenders usually take 2-7 working days to disburse a personal loan. However, for online applications it does not take more than two days.
Lenders also offer pre-approved personal loans to their select existing customers with instant or same day disbursal. Since the customers have already been through the credit assessment process initially, they are not required to go through the entire application process again and can get personal loan instantly.
Lenders having end-to-end digital onboarding process claim to disburse personal loans on the same day. Therefore, individuals who are in urgent need of funds should also compare personal loan offers from lenders having digital loan processing.
Steps to Get a Personal Loan
You can get a personal loan in three easy steps:
Loan Application
The applicant has to submit the loan application either through the official website of the bank/NBFC or by visiting the bank branch, alongwith the necessary documents. The lender assesses the loan application and evaluates the creditworthiness of the applicant after factoring in their age, monthly income, credit score, job profile, employer’s profile, etc. If the applicant meets the eligibility criteria set by the lender, the loan application gets approved.
Loan Agreement
Once the loan application is approved, the lender offers a loan agreement to the applicant which includes loan details, such as the loan amount, interest rate and repayment tenure. Applicants are advised to read the terms and conditions carefully before signing the loan agreement.
Loan Disbursal
Once the applicant signs the loan agreement, the lender disburses the loan amount. The lender either directly disburses the loan amount in the bank account of the applicant or issues a cheque for the approved loan amount. The applicant can collect the cheque from the bank/NBFC and deposit it in his/her bank account. Loan disbursal time might vary from a few minutes to a few days depending on the lender.
Conclusion
The turnaround time of personal loan varies for different lenders. In order to speed up the loan process the applicants should check all the documents before submission. Also, it is advisable to improve your personal loan eligibility if you are planning to apply for a personal loan to avoid any delay or rejection.
