Multipurpose in nature, it comes extremely handy when you have legitimate financial expenses like funding education, medical expenses, wedding expenses, fund a holiday, consolidate debt etc. The process to apply for a personal loan is fairly simple as compared to a home loan or any other type of loan as it does not require any collateral and can be completed with minimum documentation.
What are the steps involved?Here are the steps involved in a personal loan application process –
1. Check for eligibility
2. Credit score check
How long does it take to get a personal loan?Approval for a personal loan can depend on the lender. With the changing times and digitization, it has become extremely easy to apply for a loan. Within a few minutes, you can find out if you are eligible and the entire application process can get over in less than an hour.
Once your application is submitted along with your documents, it can take anywhere between 1-7 days for your personal loan to get approved and a couple of days after that for the disbursement. Depending on the type of lender you go with, this timeline may vary. Online direct lenders can process your loan faster, whereas banks can take anywhere between a few days to a few weeks to process it.
What are the factors that affect the turnaround time on a personal loan?Based on your income proof, age, credit score and other factors, your application is processed and if you have a credit score of 700+, you stand to get your loan processed sooner. In some cases, where additional information is required by the lenders, the loan approval gets delayed.
A lot of time goes into verification as well. Since there is no collateral involved, a thorough verification process helps to ascertain whether the applicant is credit-worthy or not. You need to submit your income details, bank statements, employment proof, address proof as a part of the documentation and if any of these documents don’t live up to the approval criteria there are chances for your loan to get delayed as well.
Make sure your documents are in order and your credit score is high when you apply for a personal loan. With paperless applications these days, the whole process has been simplified to a huge extent which has helped fast-track the approval process as well.
Learn more about your Personal Loan Eligibility here.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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