Apart from easy accessibility and application process, a personal loan gives you complete freedom to use the amount you wish. However, whether your needs are planned or unplanned, it’s important to know the amount of time you must wait for approval. Personal loan approval time can take anywhere between a few days to a few weeks and is dependent on the type of lender you choose and their lending policy. Read on to understand the approval process followed by different types of lenders.
Personal loan approval process
The personal loan approval process involves application submission, credit and financial assessment by the lender, documentation verification, and approval or rejection decision. Lenders consider credit history, income, debt-to-income ratio, and other factors. If approved, terms are offered; upon agreement, funds are disbursed, initiating the repayment period.
- Peer-to-peer lenders
Peer-to-peer lending offers the advantage of dealing directly with the person who is willing to fund your need. It cuts out any middlemen and lets you avail yourself of a personal loan online at a competitive rate, even with a low CIBIL score. This is because these lenders don’t have a defined set of application requirements. Similarly, the processing time is a lot quicker in comparison to a bank. Typically, you can get finance within a few business days.
- Online direct lenders
Online direct lenders are common today, and reputed ones are easy to access too. Usually, approval takes only minutes if you have all the documents on hand and fill up the form carefully. A delay only occurs when there is a mismatch, and the lender has to review your application and supporting documents manually.
Additional Read: Personal loan with bad CIBIL Score
Banks, by far, have the most extended personal loan approval times simply because of the strict lending protocols and higher credit standards. Typically, when you apply for a personal loan from a bank, it takes at least a few days to a week to get approved.
What is the maximum personal loan approval time?
The personal loan approval time differs from lender to lender. Based on your profile, submitted documents, and the lender policies, approval can take a long time. But in the case of a Bajaj Finance Personal Loan, we provide instant approval once you finish the application process, given that you meet all the eligibility criteria.
How to improve the chances of your personal loan approval?
To enhance loan approval chances, maintain a good credit score, ensure accurate documentation, manage existing debts, demonstrate steady income, and choose a suitable loan amount. Research and choose lenders based on your credit profile to maximize approval odds. Following are the special measures to improve your chances of getting speedy approval.
Maintain a Healthy CIBIL Score
Even though the required credit score for personal loan approval is 700, try and maintain 685 or higher as this is the ideal credit score for loan approval on favourable terms. This will expedite the process, letting the lender know that you’re responsible for credit and do not pose a risk. In turn, the lender does not need to closely examine every aspect of your finances to determine whether you’re a good candidate or not.
Opt for a lender with a quick loan approval policy
When you’re looking for funding in a hurry, it helps to pick a lender that specialises in speedy disbursals. For example, the Bajaj Finserv Personal Loan offers instant approval, in some cases, within 5 minutes of application. Further, Bajaj Finserv also offers quick disbursals, and you can have the entire sanction in your bank account within 24 hours of approval.
What is the disbursement time after personal loan approval?
In the case of a Bajaj Finance Personal Loan, the funds are disbursed in your account within just 24 hours*.
*Terms and conditions apply
Additional Read: How much personal loan you get on salary?
This loan requires minimal documentation and has basic eligibility requirements too, and to hasten things further; you can apply via a pre-approved offer. Once you check your pre-approved offer, select an option that’s customised for you and apply. This is another way in which you can get instant personal loan approval online.
As you can tell, the personal loan approval process, while simple; requires you to take certain measures. Make sure that you prepare beforehand to avoid any unpleasant surprises!
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*Terms and conditions apply