The demand for personal loans is evergreen. Whether it may be the inflation, expensive lifestyle or the convenience of personal loans, but the working class of the present generation prefer personal loans more than any other ways of availing emergency fund. Such occasions when we need some extra money to fulfill our need is very common for every human being and a personal loan probably is the best tool to fight the same. Availing a personal loan is welcomed by many young professionals as it is unsecured, reasonable and the loan disbursal process works really fast.

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As mentioned above, personal loans are very popular nowadays but the lesser known about the same is the ‘Personal Loan Process’.  Most of the loan seekers are unaware of the process that takes place when your loan is granted. Here we have bought an insight into the personal loan disbursal process.

The Process Of Loan Disbursal

The Personal Loan disbursal is done once the loan gets approved by the lender. The loan amount can be provided by the lender in many different ways. Most of the times, the loan amount is transferred to the borrower’s nominal account through NEFT (National Electronic Funds Transfer).  The other ways of transferring money are providing cheques or demand drafts which the borrower needs to collect physically. The Demand Draft or the cheque is needed to be taken to bank against which one can either take hard cash or deposit in the bank account.

The Personal Loan Disbursal Amount

The amount which you can get as the disbursal of the loan depends on many factors. Undoubtedly the first one is the amount which you have applied for and got sanctioned. The second one is the other additional charges which were due. The fees which generally the lender deducts from the disbursal amount are the processing fees, service tax or any other fees and upfront installment if stated prior.

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The Welcome Kit Of The Lender

When your loan is sanctioned and disbursed, you will receive a welcome kit which will have all the required information regarding the loan. The welcome kit will consist of the loan agreement papers of  the relevant amount, tenure and interest rates, EMI payment schedules and amortization table. Along with that, you will receive a confirmation mail on your registered e-mail address. You will even be provided with the access to your loan account online through the mobile application of your lender.

The Disbursal Time

This is the most obvious concern of all the personal loan borrowers. If you opt for a conventional loan which goes with physical visits and paperwork, it may take 6-7 days to get the loan disbursed. In another hand, the disbursal time of an online personal loan is less than that. It generally takes a few hours to get the loan disbursed. If you need the loan amount instantly, you can apply for a personal loan online. Online loans are much convenient to the borrowers as well as faster in disbursal. Here is a list of top personal loan lenders and the disbursal time of these lenders.

Lenders Disbursal Time Loan Amount ( in ₹) Interest Rate (in p.a.) Tenure Processing Fee
HDFC 4 Hours Up to 40 lakhs 10.99%-20.99% Up to 5 Years ₹1,999
ICICI Instant upon application Up to 15 lakhs 10.99%-18.49% Up to 5 Years Up to 2.25% of the loan amount+GST
Standard Chartered Bank 72 Hours Up to 30 Lakhs 10.99%-14.49% Up to 5 Years 1% of the loan amount
Bajaj Finserv Within 24 Hours Up to 25 lakhs 10.99%-16% Up to 5 Years Up to 2% of the loan amount
Finance Buddha   Within 72 hours Up to 15 lakhs 15.50%-24% Up to 2 years Up to 2% of the loan amount

Requisites For Repayment

If you go for an instant loan, your repayment process will also become easier. The repayment of a loan generally starts from the next month of disbursal of the loan. When your loan is disbursed before 20th of a month, your repayments will start from the following month. But if the same loan is disbursed after 20th, the EMIs of the loan will be deducted from the month after the next month. Let’s say your loan get disbursed on 15th July, so your EMI payment will start from the month of August. If the same loan gets disbursed in the 22nd of July, the repayment will be started from the month of September.

The repayment of personal loan nowadays is done through the auto debit option for which the borrower needs to give permission. The other way of repaying a loan is by post-dated cheques or ECS. Both the borrower and the lender make an agreement and pre-decide the same.

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Penalty Prospects

As mentioned in the previous point that either the borrower gives an authority to the lender to deduct a specific amount on a particular date or he/she has to provide the post-dated cheques to the lender. In both the scenarios, the borrower has to be assured that, on that particular date there is a sufficient amount in the bank account.  Failing to do the same, the borrower has to face a penalty as well as it will crush the credit score too.

The Concluding Lines

The quick apply and the quick disbursal of personal loans has made it very popular among young professionals. The digital lending makes the loan disbursal happen within a few hours of applying which makes a person fulfill his need without any delay. The digital lending platforms are so well designed that a loan seeker can not only apply for a personal loan online but the other process such as documentation, approval, disbursal, repayment, closure etc can be done with just a few taps on your smartphone screen. The loan disbursal of the present age has become a paperless, hassle-free and fast process which can be successfully completed in just a few hours.