Earlier, the process of taking personal loans was very long. You had to go to the bank branch and submit the document and loan application. Now it is not so, in the last few years, it has become very easy to take personal loans with the arrival of digital lending platform and instant loan app. Nowadays, you can get personal loans from a few minutes to a few hours.
Personal loan approval is different in banks and non-banking financial companies (NBFCs). For example, if you have a pre-up-up loan offer of the bank, the money will be credited in a few minutes or a few hours. However, traditional personal loans may take longer to approve. Because usually their amount is more.
Through the Moneycontrol app and website, you can take an instant personal loan of up to 50 lakh rupees in a few minutes. Here the interest rates start at 10.5% and you just have to fill your details to take a loan, complete KYC and set a repayment to get your credit approval.
Today we will tell you how much time will it take for your personal loan to be dispersed and which factor of personal loan approval depends on.
What is a personal loan?
Personal loan is an amount borrowed from bank or NBFCs. This money can be used for any work. For example, you can use this money to repay old debt, renovate your home, meet your wedding expenses, cover medical bills or meet your vacation expenses. Banks, credit unions and other financial institutions offer personal loans in India.
How long does your personal loan take to apply?
Personal loan approval is different from every bank and lender. The process of personal loan approval starts only when you submit the loan application with all the necessary documents. Then the bank checks your background and decides whether you are eligible for personal loan in India.
During this time, if you already have a pre-upward loan offer of your bank, then your personal loan approval is very less. You will get a loan in a few seconds because the bank already has your necessary documents. In most banks, instant loans are 100% digital to speed up the process of approval.
However, if you are applying for more loan amount or going to take a loan from any other financial institution, then it may take longer to approve personal loan. Usually, banks do your personal loan between 3-7 days.
Personal loan approval process includes many steps. When you submit your document in the bank, after that the bank will assess your application and check your credit score, employment history, income stability and many other things to decide whether you have to give a loan. The bank does many types of checks to ensure that you do not default in your loan repayment.
Factor for approval time of personal loan
As told you that the bank checks several backgrounds to approve your loan or not. Usually this entire process takes a few days. However, if some of your things are present, then your personal loan approval time will be reduced.
- Submitted documents: If you submit all the necessary documents, then the bank can start the approval process in no time. However, if there is a document missing or you have submitted the wrong document, then the personal loan approval process may take longer.
- Credit History: If your credit history is good, that is, if you have taken many credit and loans and have paid them on time, then your loan approval process will not take much time.
- Credit Score: Banks depend too much on your credit score to decide whether you are eligible for a loan or not, as it reflects your credibility as a borrower. If your credit score is more than 750, then there is a possibility that your personal loan will be approved quickly.
- Income stability: The number of years you have worked in your job or before, it shows whether your income is stable or not. Banks usually give loans to those whose income is stable. Your income shows your loan repayment capacity. People with more income are more likely to get approval for quick approval.
Apart from these factors, your current relationship with the bank also plays an important role. If you have maintained good relations with your bank, then personal loan approval time decreases significantly.
Summary
With the help of digital platforms, it has become much easier and fast to take personal loans. Understand the factors that affect the approval time and know how to speed up your personal loan dishabsal.
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Disclaimer
This fraction/article is written by an external partner and does not reflect the work of the editorial team of Moneycontrol. This may include references to products and services offered by Moneycontrol.