Ever found yourself in a financial pinch and wondered how quickly you could secure a personal loan? In such situations, Personal Loan approval time is a matter of critical importance. In this guide, we'll demystify the personal loan approval process, offering clarity and peace of mind.
Personal Loan approval process
The Personal Loan approval process typically involves several steps. The first step is to submit your loan application along with all the necessary documents.
The lender will carry out a loan creditworthiness assessment by examining your credit score, income stability, and employment history. This credit evaluation helps the lender determine your loan eligibility.
Apart from creditworthiness, the lender also checks the background as part of the borrower vetting. Your loan will be approved if your application meets all the requirements.
Many financial institutions, such as banks, online lenders, and peer-to-peer (P2P) platforms, offer personal loans. Banks typically provide competitive interest rates, trustworthy services, and the convenience of having multiple financial products under one roof.
For example, Axis Bank offers Personal Loans at competitive interest rates to eligible borrowers through an easy online process. Axis Bank Personal Loan comes with flexible tenure, and it can be availed without the requirement of collaterals. You can use a Personal Loan Eligibility Calculator and a Personal Loan EMI Calculator to find the best option for you.
How long does it take to get a Personal Loan?
The Personal Loan approval time can vary depending on various factors. When applying online, your personal loan application can be approved instantly, with funds disbursed within 24 hours. While some lenders may have a quicker approval procedure, the Personal Loan approval time can be between 2 to 5 working days on average. However, if there are any discrepancies in the information provided by the borrower, Personal Loan approval time may stretch up to 10 working days or slightly more.
How to improve the chances of your Personal Loan approval?
1) Maintain a good credit score: A higher credit score indicates better creditworthiness and increases your chances of loan approval.
2) Have a stable income source: Lenders prefer borrowers with a stable and regular source of income.
3) Accurate documentation: Ensure that all the required documents are complete and accurate.
4) Fulfill eligibility criteria: Each lender has specific eligibility criteria for Personal Loans.
Opt for a lender with a quick loan approval policy
Choosing a lender with a quick loan approval process can make all the difference. Look for a lender with a reputation for transparency, fair interest rates, and clear terms and conditions alongside their fast loan Personal Loan approval time.
What is the disbursement time after Personal Loan approval?
After your Personal loan gets approved, the lender will send you a Sanction Letter via email. The disbursement time for a personal loan can range from one to two working days. During this time, you can either collect the loan amount cheque by visiting a branch or have it directly credited into your bank account. By applying online, your personal loan application can receive instant approval, and funds can be disbursed within 24 hours.
Also Read: Understand Personal Loan disbursement process in banks
Wrapping up
You have quite a few options when it comes to choosing your lender for a personal loan. While loan decisioning can vary in speed, choosing a lender known for swift loan decisions can help. By presenting a strong profile and being efficient with documentation, your personal loan funding authorisation can be both easy and quick.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
