What is a personal loan?
A personal loan is one that funds someone’s personal financial requirements. Personal loans have a higher interest rate than other loans and typically have shorter tenure. A personal loan has fewer eligibility requirements and is thus a lot easier to apply for. In many ways, it’s an instant loan to take care of your short term personal needs.
Personal loan approval
The time it takes for a personal loan to get approved might range from a few days to a few weeks, depending on the sort of lender you choose and their lending policies. It also matters how meticulous you are in adhering to loan application rules. While you can ensure that there are no delays on your end, keep in mind the varying sorts of lenders’ personal loan approval times.
1. Peer to peer lenders
The benefit of peer-to-peer lending is that you may deal directly with the lender. It eliminates all middlemen and allows you to apply for a personal loan online at a fair rate, even if your CIBIL score is a little low. This is due to the fact that these lenders do not have a set of application standards. In comparison to a bank, the processing time is significantly reduced. Funds are typically disbursed within a few business days.
2. Direct lenders available online
Online direct lenders are prevalent, and reputable ones are also easy to find. If you have all of the necessary documentation on hand and thoroughly fill out the application, approval usually takes only a few minutes. When there is a mismatch, the lender must personally assess your application and accompanying documentation, causing a delay.
Because of their tight lending rules and stricter credit standards, banks have by far the longest personal loan approval periods. When you ask for a personal loan from a bank, it usually takes at least a few days to a week for your application to be approved and for the funds to get transferred.
Things to Remember
As a general guideline, if you want a quick loan, make sure you meet all of the eligibility conditions and have all of the supporting paperwork on hand. Also, take these extra precautions to increase your chances of receiving prompt approval.
1. Ensure your CIBIL score is good
Despite the fact that a credit score of 700 is required for personal loan approval, aim for a score of over 750, since this is the best credit score for loan acceptance on favourable terms. This will speed up the procedure by demonstrating to the lender that you are credit-worthy and do not represent a danger. As a result, the lender won’t have to go over every detail of your finances to see if you’re a good candidate or not.
2. Choose a lender that has a fast loan approval policy.
When you need money quickly, choosing a lender that specialises in quick disbursals is a good idea. On Finserv MARKETS , for example, they provide immediate approval in some situations, as soon as 5 minutes after application. They also provide rapid disbursements, with the complete sanction available in your bank account within 24 hours after approval. You can check your eligibility using this personal loan eligibility calculator.
3. Pre approved loans
A personal loan takes minimum documentation and has basic eligibility requirements, and you may apply using a pre-approved offer to speed things up even further. After you’ve double-checked your pre-approved offer, pick an option that’s right for you and apply. It is another way to get quick approval for a personal loan.
Now that you know how long it takes to receive a personal loan, it’s time to evaluate a few different offers to see which lender can provide you the best interest rates and fees. This will assist you in finding a loan that suits your requirements while also being the most cost-effective in the long run.
Keeping the same in mind, if you wish to apply for a personal loan, head to Finserv MARKETS and benefit from flexible repayment tenure, pocket friendly interest rates, minimal fee for loan foreclosure and much more!