The personal loan disbursement process is an important aspect you must know when applying for a loan. This is because the disbursement process directly impacts the timeline of when you will get the funds. Additionally, this process varies for every financial institution and the time taken to complete the process also differs.
To understand the personal loan disbursal meaning and process, read on.
Simply put, personal loan disbursal is the time when the lender transfers the funds to your account. Generally, there are 3 stages in the disbursal process of a quick personal loan online, these are:
To begin the personal loan disbursement process, you need to apply for a personal loan. Apart from filling in the application form, you will need to submit documents that the lender needs to verify your identity and creditworthiness.
Once you submit your loan application, the lender authenticates the information. Most financial companies check your credit score, repayment history, as well as income and debt, to ensure you can repay on time. If you meet all essential parameters, the lenders approve your application. You will receive the sanction or confirmation letter at this stage, which you need to sign and send back to the lender.
Also Read: How Does a Personal Loan Works
Once all these formalities are complete, personal loan disbursement comes next. This is the time when you will receive the loan amount directly in your bank account. While some lenders take 3-4 days to review your application, others offer instant approval.
The same applies to the gap between the sanction and disbursement. In some cases, you may have to wait for 2-3 days after you sign the agreement to receive money in your account. In other cases, you may receive the funds on the same day.
Remember, the loan process doesn’t end with personal loan disbursal. The next stage is critical to your financial health. This is when you repay the loan amount in EMIs that contain both the principal and interest components. By ensuring timely repayments, you can maintain your creditworthiness for future requirements.
Now that you have understood the stages of personal loan approval, knowing how to speed up the process is essential. There are many ways in which you can ensure the loan amount is disbursed quickly, such as:
Armed with this information about personal loan disbursement, you can now get ready to take a loan whenever you need funds.
At Fibe, you can benefit from easy-to-meet eligibility terms and online approval in just a few minutes. The Personal Loan disbursement process is instant and hassle-free on Fibe. Apply for a loan of up to ₹5 lakhs on our Personal Loan App or our website to enjoy seamless borrowing.
Upon approval, the lender will directly transfer the sanctioned (approved) loan amount to your preferred bank account. You will receive a communication about the same.
Access to funds depends on the lender you choose. Generally, you will get the loan amount just a few hours after disbursal as the lenders transfer the amount online. Some lenders may take up to 2 days or more to disburse the amount after completing all the formalities. You can check the disbursement period of a lender on the official website.
This depends on the lender. After you sign the sanction letter, you may receive the funds in a few hours or up to 3 days. By choosing Fibe, you can enjoy a fast disbursement loan and receive the loan amount within a few minutes of approval.
No, disbursement means that the lender has credited the amount to your account, and you can cancel your loan only before disbursement. Once you receive all the funds in your account, it is not possible to withdraw your application if you change your mind.
Loan sanction refers to the lender’s official approval for the amount you are slated to receive. Disbursement is when the lender transfers the loan amount to your bank account.
Once the lender initiates the personal loan disbursement process, you can’t cancel it. This is because personal loan disbursement refers to the crediting of the loan amount in your bank account.
There can be specific reasons for a delay in the disbursement of your sanctioned loan amount. For instance, there can be a mismatch between your bank account number and the one provided to the lender. In addition, some traditional lenders take as long as 10 days to credit your loan amount after initiating the disbursement. To know the exact reason for the delay, contact your lender.