Taking a loan allows you to access funds for both strategic and unexpected needs. However, getting the loan amount disbursed to your bank account requires a series of steps. One among them is getting your personal loan sanction letter from the lender. Read on to know more about this letter and how you can get it.
A loan sanction letter for credit facilities like a personal loan plays an important role. Lenders send it as a sign of initial approval of your loan application. While there are other formalities that lenders will complete after the sanction letter, it offers you important information related to the terms of your personal loan offer.
Do not mistake this letter for the loan agreement. Instead, think of it as the first step to disbursal of your loan amount. You can read the personal loan sanction letter to check the loan offer and other relevant details of the loan such as the interest rate, EMI and tenure.
This letter helps you get a snapshot of the loan amount you can expect and gives you the time to get back to your lender in case you have doubts or want to negotiate on any terms. In general, you get up to six months to review the terms in this letter. After this process, the lender will verify your documents and do other checks to ensure you can repay the loan. Once this is done, you will receive the loan agreement. On signing it, you can expect to receive the loan amount.
Here are the main steps to getting a personal loan sanction letter.
Once this process is complete, the lender authenticates the application and if it is approved, sends you this letter as the next step.
Though every lender has a slightly different loan sanction letter format, here is what most letters contain:
Now that you understand a loan sanction letter better, prepare yourself to boost your eligibility and do your homework before you apply. At Fibe, we make the process simple. You can apply for an instant loan online or on our app and submit minimal documents to get a personal loan of up to ₹5 Lacs. Simply download our Personal Loan App and apply for a personal loan online in minutes!
Once you get the sanction letter for a personal loan, you have time to read and accept the offer. After you do, lenders disburse the loan amount in your bank account.
Usually, a sanction letter for personal loan is valid for up to 6 months.
Yes, there are cases when a loan may get canceled after the sanction letter is issued by the lender. This may happen if there are issues with verifying documents or if you choose to cancel the loan.
This letter is important as it gives you all the important information related to the personal loan such as the interest rate, tenure, EMIs, fees and charges as well as the approved loan amount. This letter signals the first step of approval from the lender and comes before the amount is disbursed.
You can check your loan sanction status on the lender’s app or by logging in to the website and using your application number. You can also contact customer care.