Are you taking a personal loanfor the first time? Then knowing the ins and outs of the disbursement process will go a long way to ensure a good borrowing experience. This becomes even more important when you’re applying for a loan to cover a financial emergency.
If you know all the steps involved in the process, you can complete all the formalities timely and get the loan quickly. Here’s a quick guide to help you get started.
1. Loan application
The personal loan disbursement processbegins with the processing of your loan application. After you’ve submitted the form, the lender will take either a couple of hours, in the case of an online application or a week, to verify your credentials if you apply offline.
In addition to the application form, you’ll also be asked to furnish a set of document proofs for verification. Make sure all your paperwork is duly attested, wherever necessary, and updated to avoid any delays in the process.
Once the lender is satisfied with the information you’ve provided, you’ll proceed to the next stage: loan approval.
2. Loan approval
After the document submission and verification process, your lender will initiate the loan approval process. While the approval time may vary from one lender to another, it typically takes two to three working days. However, if you apply online, you can get approval in only a matter of minutes. Just ensure that your paperwork is in order so you can get through the step without delays.
3. Loan disbursal
Once you’ve received the green flag, you’ll get a sanction letter from the lender via post or email. This will contain your loan agreement and other key details like:
- Personal loan interest rate
- Total loan amount
- Equated Monthly Instalments (EMI)
- Processing fee
- Additional charges/penalties
- Type of loan
The amount is usually disbursed after the sanction letter and takes anywhere between 24 hours to 2 working days. Nevertheless, the personal loan disbursement time can vary from one lender to another.
Generally, you’d have to visit the lender to collect the cheque or demand draft for the loan amount, or they could also mail it to you. However, most lenders today offer instant disbursement, where the amount reaches your bank account directly via NEFT.
Additional Read: Things To Do If Your Personal Loan Gets Declined
As you can see, loan disbursement is pretty straightforward, but every step is crucial. While the process isn’t that time-consuming, you can ensure a faster disbursement by opting for a lender like Tata Capital.
Thanks to our simple, five-step online application process, you can apply in no time and get your loan instantly. All you need to do is enter your personal details and input loan requirements to get started. You can click here to view our disbursement process in detail or even use our handy personal loan EMI calculator to check probable EMIs before applying.
So, why go anywhere else?