How Much Time Does Personal Loan Approval Take? 

Acquiring personal loan approval can take anywhere from a few hours to several days. Loan approval time depends on various factors. Visit IIFL Finance to know more!

17 Oct,2022 10:46 IST 70 views
How Much Time Does Personal Loan Approval Take? 

When one is short on money, a personal loan can be the quickest way to get some cash to meet an emergency.

A personal loan is basically uncollateralized credit that allows you to borrow money without having to pledge any asset in its lieu. 

The money so borrowed can be used for any purpose, from paying off school or college fees to some heavy medical bills to even home repairs for which one may not have enough cash.

The following steps are involved in getting a personal loan: 

Eligibility Check

• Credit score verification
• Submission and verification of documents
• Loan approval
• Loan disbursal 

Apart from the fact that one does not need any collateral, the best thing about a personal loan is that it can be availed very quickly. 

The length of time a personal loan approval could take can depend on the lender. Most good lenders use the latest available tech tools to complete the process in quick time and without any hassle to the borrower.

If the borrower’s documentation is in place and all the know-your-customer details as well as the credit history and CIBIL score have been verified and examined to the lender’s satisfaction, it should not take more than a day or two for the borrower to have the loan disbursed in their account. 

Typically, most good lenders—banks as well as non-banking finance companies—will take anywhere from one day to seven days to approve the personal loan then then a couple of days to disburse the money.

These days, since most good lenders allow for online applications, the entire process is much quicker and easier than before. 

Factors Impacting Turnaround Time For Personal Loan Applications

The personal loan application process depends on the income proof, age, credit history and CIBIL score and a few other factors. 

The CIBIL score, which gauges a person’s credit history and therefore their creditworthiness, can vary from 300 to 900. Typically, if a borrower has a CIBIL score of higher than 750 they are offered a personal loan at the best rates in the market.

Even someone with a lower CIBIL score can get a personal loan, but at a higher interest rate and after some increased scrutiny along with some riders and strictures. 

Since a personal loan is without collateral, a lender needs to be sure of the profile of the borrower and so a thorough verification process is conducted to make sure the person is not a risky borrower who may end up delaying on repayments or even defaulting on them. 

Documentation is key to the verification process, A borrower needs to make sure their documents are in order and that they have submitted their proofs of income, employment, address and bank account statements, along with PAN and Aadhaar cards and that the information is correct. If any of these documents are missing or not in order, the process of loan application can be delayed. 

Conclusion

As a borrower you need to make sure your documents are in order and you have a high credit score to boot. 

Not only do good lenders like IIFL Finance offer the most competitive interest rates to such people, they also offer several value-added services as well as customer support to make the process of availing and repaying the loan as seamless and hassle-free as possible.

Moreover, the fact that the application process can now be completed online, means that the same can be cleared and disbursed quickly. 

IIFL Finance offers an instant personal loan of up to Rs 5 lakh through a fully online application, which is processed within five minutes and the amount is disbursed within 24 hours.

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