If you are in an emergency and need money, the first thing that usually pops up in your mind is how fast can you get a personal loan. The situation could be a medical emergency, unplanned travel, or even consolidating your debts, which in most cases are decisions that have to be made very quickly and the time factor is critical. A silver lining is that with digital processing the pace has become lightning fast for the disbursal of personal loans. Furthermore, with digital processing, speeding up the disbursal timelines of personal loans has become a favorite hobby.
Today the online personal loan can be disbursed in a matter of hours; however, the actual time-frame depends on many factors- documentation, credit profile, lender’s policies, and even the time of day or week.
Typical Personal Loan Disbursal Timeline
To a great extent, personal loans take about 24 hours to 7 working days for disbursal. Below is the explanation of each step, along with the time that it should be completed.
- Application Submission: This part generally lasts for 10 to 15 minutes if done online. The employer is to provide the necessary information about themselves, finances, and their employment, alongside required docs.
- Verification and Credit Check: After your application is made, the lender does a credit check and verifies the docs you submit. The complexity of your profile, and how complete your papers are may lead to this step going anywhere from a few hours to 2 working days.
- Loan Approval: If all the data that is there in the application is true, the lender is publishing the approval decision. In the cases, when the verification of the additional part is still necessary, for instance, for the self-employed applicants or those with irregular income, this step may take longer.
- Loan Agreement and Disbursal: Once approved, you have to accept the loan conditions to proceed. Usually, if you sign the agreement electronically, the disbursal will be done within the same day or by the next working day at the latest. The money is directly transferred to your bank account that you have registered with us.
Factors That Can Affect Disbursal Time
The speed of disbursal varies from loan to loan. A few key factors influence how quickly the amount hits your account:
- Applicant Profile Salaried individuals working with reputed companies often experience faster approvals. If your income is steady and your credit score is high, lenders are more likely to approve and disburse quickly.
- Credit Score and History A good credit score reduces the lender’s risk and speeds up approval. On the other hand, if your credit history shows irregular repayments or high utilisation, the lender might take longer to assess your risk profile.
- Document Accuracy Incorrect or missing documents can delay the entire process. Make sure to submit valid identity proof, address proof, income details, and bank statements in the format requested by the lender.
- Loan Amount and Tenure Higher loan amounts may require more scrutiny, especially if they are on the higher end of the lender’s approved range. Smaller ticket-size loans are often disbursed faster.
- Time of Application Applying during weekends or public holidays can delay processing. Submitting your application during regular business hours on weekdays increases the likelihood of same-day processing.
Is An Online Personal Loan Quicker Than Traditional Loans?
Well, generally speaking, an online personal loan is definitely faster. Digital lending platforms make each stage smooth — from application to verification to disbursal — most of the time, they drastically reduce the turnaround time. Since documents are submitted digitally, and agreements are signed electronically, there is minimal paperwork and little manual intervention.
On the other hand, if the documents are not clear, or the system places a manual review flag, or the profile of the borrower is still needed to be validated, then delays may still occur even while applying online.
Tips To Get A Personal Loan Released More Quickly
- Have all necessary documents in digital format ready
- Make sure that your credit score is good (it should not be below 700)
- Check all the information you entered before submitting the form again
- Try to make your application during the working hours for faster processing
- Select a lender that grants immediate approval for your profile type
In conclusion
The personal loan distribution time has been significantly shortened due to technological advancements in the digital era. Though it is within the realm of possibility for an online personal loan to be approved and received on the same day, it is contingent upon how prepared your application is and the internal process of the lender. To get things going faster, make sure you have all documents ready, your credit profile is clean, and the loan amount is reasonable. Being precise and proactive in the application process will make things easier for you to get the money quicker and with less hassle.
