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How much time it will take my personal loan to get approved?

The quickest way to take care of an urgent requirement for extra funds is by applying for a personal loan. You might be wondering how long it would take to get this loan approved. Since this loan is unsecured the approval time might be longer than loan against gold. The time taken for the approval of personal loans varies from lender to lender. 

Depending on the type of lender you’ve chosen the approval time could be anywhere between a few minutes to a few weeks. While online lenders could sanction your loan in a few minutes, banks, NBFCs, and other financial organizations might require a few days or weeks to give their approval. Unlike the online lenders who use algorithms to process your loan application, banks and NBFCs rely on their staff to verify and process the loan application.

Banks And NBFC’s

The credit standards set by banks and NBFCs are quite high. Hence they require more time to review a loan application. Besides, banks and financial agencies rely on their staff to process the loan application since most of them don’t have the technology for quick processing.

Time Taken For Approval: Between a few days to a few weeks.

Time Taken To Get The Funds: 24 hours to a couple of weeks

Online Lenders

 The quickest option for getting a personal loan is through an online lender. Once you’ve filled the application form and successfully uploaded all the required documents you can get your loan approved within a few minutes. Sometimes it could take a few days before your loan gets approved because your online lender wants to review your online application and the documents uploaded.

Time Taken For Approval: Few minutes to a couple of business days.

Time Taken To Get The Funds: Around 1 or 2 business days

Personal Loans: Process For Approval

The process of loan approval is now quite fast. The time taken by most of the NBFCs, banks, and other financial organizations has been cut down from several weeks to a few days or hours. Considering the retail industry is ever growing this is necessary for banks and financial institutions to gain a strong foothold. The process involved for loan approval is as given below.

  • Fill in and submit the loan application form along with the supporting documents
  • Discussions with the bank/NBFC/financial institution
  • Background verification of the loan applicant
  • Signing the loan agreement documents including the terms and conditions involved.
  • Sanctioning of the personal loan
  • Transferring the funds to the applicant’s personal account

Supporting Documents

The loan applicant is required to submit the following documents along with the loan application. 

  • Proof of identity
  • Proof of address
  • A valid bank statement
  • Salary/income statement
  • Tax returns

Merits Of A Personal Loan

Given below are some of the major advantages of taking a personal loan.

  • Compared to other types of loans these loans are easily available
  • No collateral security is required for loan approval
  • Interest rates are quite reasonable just like a gold loan interest rate
  • No involvement of an agent that could bring in additional expenses.
  • A minimum amount of paperwork for Banks and NBFCs.
  • No paperwork involved for online lenders
  • Quick processing and approval
  • Excellent schemes and offers

Compare a few major banks, online lenders and financial institutions that provide personal loans before you approach them. Make sure that you choose one that perfectly fits your requirements.

This blog is maintained by the Finaura team. Finaura is a solution that will help you find the best gold loan solution from gold loan company nearest to you. If you have any queries please feel free to contact us. Call us on +91 484 2388285 or email us at [email protected]

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