Personal loans are known for their quick disbursal time and minimal documentation, however the disbursal time for every lender is different and disbursal time for every borrower is also different. Personal loans comes very handy when life gives you surprises and you need money for them. The process to apply for a personal is hassle-free and some lenders are also offering instant personal loans in which the disbursal time is a few hours. Let’s discuss in detail the process for apply personal loan online and how long does it take:-
Process for an online personal loan
Personal loans can be applied online using two ways, one is using internet banking and other is by visiting the website. A borrower can apply for a personal loan using internet banking if they already have the account with a lender, that makes them eligible for a pre-approved loan. If a borrower does not have a bank account then they have to perform the following steps:-
- Select a lender and then visit the website of the lender
- Now go to the loan section of the website
- Choose a personal loan under that category
- Here, click ‘Apply Now’
- An application form will appear, fill out all the details carefully and verify before clicking submit button
- Once the application form is submitted the bank will assess the eligibility and ask to submit the required documents.
- After the assessment of eligibility and documents, the bank will disburse the amount in the borrower’s bank account.
Online personal loan
Generally, online personal gets approved in a few hours. Though the disbursal time varies from lender to lender. The only thing which takes time is filling out the application form and verification of documents.
Eligibility criteria for a personal loan
Eligibility criteria to get a personal loan online vary from lender to lender, but here are the general criteria which are followed by many:-
|Age||21 years – 60|
|CIBIL score||750 or above|
|Loan Amount||Up to Rs 50 lakh|
|Work Experience||3-4 years of experience and 6-12 months of experience with the current employer|
Documents required for a personal loan
- Identity proof- Aadhaar card, Driver license, Passport, Voter ID card, etc.
- Address proof- Aadhaar card, Voter ID card, Electricity bill, phone bill (latest)
- Application form which should be self-attested by a borrower
- PAN Card
- Form 16,
- Salary slips
- Bank statements
- Income Tax Certificate
- Passport-size photographs.
How to know if a loan application is approved?
An applicant can check the status of loan application by visiting the website. One can log in to a website using an application number, registered mobile number and date of birth. However, if the loan gets approved the lender will send a message to an applicant.
What effects the turnaround time on an online personal loan
A lender asses the application form of an applicant on the basis of age, credit score, income and a few other factors.
Credit score: If your credit score is more than 750 then there are very few chances that your loan will get rejected and with a good credit score the lender approves the loan quickly and disburses the amount in the account of the applicant. Having a bad credit score can be a turn off for many lenders.
Verification process: As the personal loan is an unsecured loan, where no collateral is required so a lot of verification is done on the part of the lender. The lender verifies each and every document carefully if any of the document is not as per the requirement then loan approval might take time.
Bottom line: Digitalisation has changed almost everything in this world. The way payments are done, shopping is done and most importantly loans can also be availed by just sitting at home. The process is not only hassle free but it also saves time drastically. Personal loans are the ideal solution whenever a person is in financial needs. A personal loan can be availed for wedding expenses, home renovation or medical emergency. To save your time and lenders time one must make sure that all the documents are as per the requirement and you fulfil all the eligibility criteria.