How Long Does It Take to Get a Personal Loan?
A personal loan is one of the quickest ways to borrow money in case of any emergency or to meet any other need that requires cash immediately. Personal loans don’t need collateral or security and usually can be taken with little documentation.
It has no end-use restriction, meaning the amount borrowed can be utilised for any reason, be it large medical expenses, a family vacation, or even to clear existing debt a person may have.Getting a personal loan approved and disbursed usually involves the following steps:
• Checking the borrower’s eligibility
• Checking the credit score
• Document submission and verification
• Approval of the loan
• Disbursal of the loan
Personal loans can take from a day to around a week for approval once all the documents are in order and the lender is convinced that the borrower is eligible for the loan.
Factors Affecting Personal Loan Application Times
The speed with which a personal loan is approved and disbursed depends on several factors such as the borrower’s age, income statement, and CIBIL score, etc.If a person decides to apply for a personal loan in a bank that they already hold an account in, then the loan approval and disbursal might be quicker as the lender might already have the necessary documentation needed to process the loan. Non-account holders would need to go through a longer verification process which would increase the time taken to disburse the loan.
Besides banks, several non-banking financial companies (NBFCs) also offer personal loans. NBFCs follow similar procedures for sanctioning and disbursing the loan, but may be quicker than most traditional banks.Borrowers should ensure that their information submitted in the application is true and verifiable. Applications with inaccuracies can take much longer and could even be rejected.
The borrower’s CIBIL score plays a crucial part in the loan approval process. The CIBIL score is basically a summary of a person’s credit rating, history and report. The score is between 300 and 900.Generally, those with a CIBIL score of higher than 750 are seen in good stead and are offered better rates. Those with lower CIBIL scores can still get personal loans but at a higher interest rate. There are no hard and fast rules as to how low a score can be, but the higher the score is, the better the chances of approval and lower interest rates.
The verification procedure depends on the documents provided by the borrower and, therefore, all of the information given needs to be up to date and in order. Borrowers also need to ensure all of their KYC (Know Your Customer) documents are updated and complete.All of this is done as a personal loan is unsecured and a lender needs to ensure that the person applying for a personal loan will not delay or default on the payments.
Once the borrower’s documentation is in order and the lender has verified the application, loan disbursal shouldn’t take more than a few days.Conclusion
If the borrower has a high credit score and their documents are complete and in place, the application process shouldn’t take more than a few days with a good lender. Some lenders even provide loans within 24 hours.At IIFL Finance, executives make it really easy for you to avail a personal loan and then to repay it. The company processes a personal loan application submitted online within minutes and, and once the documents are verified, transfers the cash into the borrower’s account within a day.
Not only can you apply for an IIFL Finance personal loan online and submit all documents with ease, you can also repay online, and flexibly at that. On top of all this, you can also avail several value-added services. And not to forget, you also get the most competitive interest rates in the market.Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.
