Personal loans are the most preferred debt instruments because of their rapid approval. Today, with the advent of loan apps and online loan processing facilities, you can avail an instant cash loan within a few hours. This has made personal loans one of the most suitable financing avenues to address emergency financial needs.
Another popular type of personal loan is the salary loan. A salary loan is an unsecured personal loan that you can avail on your salary. It is a short-term loan and is usually 10 times your monthly salary. However, this loan amount depends on several factors including your credit score, monthly obligations, and employment stability.
Read on to understand the role of disbursal speed in personal loans.
The Standard Speed of Personal Loan Disbursals in India
In the Indian financial market, the standard speed of instant cash loan disbursals ranges between 1 and 5 business days. The promptness of loan disbursal depends on the financial institution you have selected to secure the loan from.
If you are applying through a loan app, then your loan amount might get disbursed into your account within 24 to 48 hours. Since the entire process is digitalized, loan processing happens much faster. Also, salary loans are processed quite quickly.
The Role of Disbursal Speed for Personal Loans
The speed of disbursement of a personal loan can remarkably impact how easily or early you are able to meet your financing needs. Typically, this observes critical importance in scenarios where emergency financing is a concern and you need immediate funding to meet the impending expenses.
Scenarios when the speed of loan disbursals is of utmost importance –
1. Meeting medical emergencies
During a medical emergency, the speed of loan disbursal is quite crucial. These situations are unpredictable and have time-sensitive financing requirements. You cannot wait for weeks for the money to be credited when you need urgent cash to pay the bills.
2. Higher education
Another scenario where an instant cash loan disbursal can be of much help is when you need to fund expenses related to higher education. Since the admission window periods are limited, you need to arrange the cash within a short time. In such situations, disbursal time can be very crucial.
3. Meet urgent travel expenses
There is always a risk of meeting an unfortunate event during your trip, like loss of baggage, theft of your wallet, or any other crisis. In all these situations, quick disbursal of a personal loan can come to your aid. You can apply for this loan while on the trip and the loan amount is disbursed within 24 to 48 hours.
Factors That Impact the Personal Loan Disbursal Speed
Apart from lender selection, the following are the aspects that can significantly impact the disbursal speed of an instant cash loan.
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The mode and platform selected for the application
You can apply for a personal loan online through a loan app, wherein the disbursal process is much faster. This is because of the digitalized processing which reduces the time taken to approve and verify your details.
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Type of financing availed
Personal loans are available as both secured and unsecured financing options. However, if you select an unsecured loan that does not require any collateral, the disbursal speed for the advance is likely to be fast. This is because the as steps like security verification are eliminated.
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Eligibility fulfilment
Your eligibility also impacts your disbursal time. If you have met all the eligibility criteria set by the lender and have furnished all the documents as mentioned then your loan amount will be disbursed faster. However, not meeting the eligibility requirements or missing out on the documents can result in unnecessary delays.
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Pre-approved offers
If you apply for the loan through a pre-approved offer, the time taken for loan disbursal will be shortened. This is because your lender has already verified your profile based on your credit report and your past history.
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Salary loans
If you apply for a pre-approved salary loan, then you may get the loan disbursed into your account in a short time. The speed is further increased if you apply with an existing lender who already has your details.
Conclusion
The speed of loan disbursal is very important when you are in urgent need of cash, like in cases of medical emergencies, urgent home repairs, car repairs, or any other emergency. Applying for a loan through a loan app, or with an existing lender can help process your loan faster.
Also, you need to make sure that you meet the eligibility rules cited by the lender and furnish the documents in the correct format as mentioned by the lender. Check out the eligibility rules cited by different lenders and apply with the one with minimal eligibility rules.
