How Long Does It Take to Get Personal Loan Approved?

Financial emergencies might stem from different reasons but they have one thing in common – they always come unannounced and at a scale that debilitates your capacity to manage only with your savings. In such a situation, you need to rely on a Personal Loan to sail through. Read on to have a clear idea about how long it takes to get the loan.

Steps Involved in the Personal Loan Verification Process

The Personal Loan verification process is how a bank confirms your details before approving your loan. It's an essential step that ensures both you and the bank are protected.

1. The process begins with your online application through the bank's website or iMobile app. You will be asked to fill in your personal and financial details.

2. The bank verifies the documents submitted during the application process. For a Personal Loan, documents required include proof of identity (like your Aadhaar card or PAN card), address proof, and proof of income (such as recent salary slips or bank statements). The bank carefully reviews these documents to ensure all the information is accurate and consistent.

3. The bank may also conduct a verification of your identity and address through a quick and secure video call.

4. Finally, the bank conducts a credit evaluation. They check your credit score and repayment history to assess your creditworthiness. A good score speeds up this process.

After successful verification, the loan is approved and the funds are disbursed directly into your bank account. The entire Personal Loan verification process is digital and designed to be quick and secure for you.

Documents Required for Personal Loan Verification

The common documents needed for a Personal Loan verification process are as follows:

• KYC documents like Aadhar Card, PAN card, Driving License, Passport
• Income proof like salary slip, ITR statements and latest bank statements that show your income and job stability
• Address proof like utility bills or Aadhar card

To know the document list in detail, visit the Home Loan documentation section.

Common Issues During the Personal Loan Verification Process

Although the process of a Personal Loan verification is quite simple, there can still be certain issues that can come up. These are:

1. Low Credit Score

The credit score is a key factor. If your score is low, it signals to the bank that you might be a risky borrower. This can lead to a rejected application or a higher interest rate. It is important that you check your score before applying.

2. Incomplete or Incorrect Documents

Missing or inaccurate information on your application is a common cause of delay. Make sure all your documents, like your PAN card, address proof, and salary slips, are up-to-date and complete. Any mismatch in details can trigger a lengthy re-verification process.

3. Debt-to-Income Ratio

Banks check your existing debt to see if you can handle a new loan. If a large portion of your monthly income is already going towards other loan payments, there will be concerns regarding your ability to make new EMI payments. It is recommended to clear existing debts first.

4. Job Instability

Banks often prefer applicants with a stable employment history. Frequent job changes or being in your current job for only a short period can raise concerns. Banks want to see a steady source of income to make sure that you can consistently repay the loan amount over the tenure.

Tips to Speed Up the Personal Loan Verification Process

Here are some easy tips that can help you speed up the Personal Loan verification process:

1. Get Your Documents Ready

An important step is keeping your documents handy and organised. Try to keep all the required things like proof of identity, address, and income by your side while applying. Having these in order and easily accessible for submission will prevent any delays caused by missing or incorrect information. Accurate document details speed up the Personal Loan verification process.

2. Maintain a Good Credit Score

Your credit score is an important measure of your credit profile. It shows a bank how reliable you are at paying back loans. A good score of 750 or higher tells them that you are a low-risk borrower, making them more likely to speed up the Personal Loan approval process. You can improve your score by paying bills on time.

3. Check Your Eligibility

Before applying, you should always check the bank’s eligibility criteria, like minimum income or age. If you don't meet these requirements, your application will likely be rejected, which wastes your time and can even negatively affect your credit score.

Applying for an online Personal Loan:

The first step is to apply for a loan. The good news is that you no longer need to wait patiently in a queue to apply for a loan anymore but can do it from the comfort of your home. Keep your Aadhaar Card and PAN Card ready and click on ‘Apply online for a Personal Loan’. The next step is to get the bank’s approval.

Getting the Personal Loan approved:

The approval procedure is initiated by the lender once you submit the loan application with the necessary documents. Based on the lender you choose, it can take two to three working days to get the approval and may take longer if you fail to submit the right documents. Thus, make sure you check the necessary documents thoroughly before you submit the application.

It is worth mentioning that a Personal Loan online applicationand approval is faster when you are an existing customer of the lender. For instance, you can choose the same bank for the Personal Loan where you have your Salary or Savings Account. If you have a Savings Account with ICICI Bank, you will find it much easier to get the loan from them.

Disbursal of the loan by the lender:

After the loan gets approved, your lender will send you the Sanction Letter to your e-mail ID. This Sanction Letter will clearly state that the loan application has been approved, along with a couple of other details such as Personal Loan amount, Interest Rate, Equated Monthly Instalments (EMI) and so on.

The disbursement time for the approval of a Personal Loan can range from <one> to <two> working days. Post which, you can collect the loan amount cheque by either visiting a branch or have it credited into your Bank Account.

The Remaining Procedure After Loan Disbursal

Loan disbursal is not where the process halts for the borrower or the lender. There are two more steps after disbursal:

1) Loan confirmation:

After the lender disburses the loan, you will receive a letter of confirmation in your mail. The letter contains a proper Welcome Kit with detailed information about the Personal Loan, EMI Payments, Amortisation Table, Customer Support and so on.

2) Loan repayments:

Repay the loan according to the loan agreement and pay the EMIs through ECS (Electronic Clearing Service).

In case you are taking the loan from your existing bank, simply give Standing Instructions to get the EMI automatically debited on a particular date each month. However, make sure that the required amount is present in your Account on that particular date every month.

With ICICI Bank’s Online Loan Application facility, you can get the money credited into your Account within two to three days and this way you won’t have to face a cash crunch for too long.

FAQ’s

What factors affect Personal Loan approval time?

The approval time is an important part of the Personal Loan approval process. The important factors that decide it are your credit score, income, and a complete application with all required documents.

What should I do if my Personal Loan approval is delayed?

The best step is to directly contact the bank. Ask for a status update and check if the bank needs any additional documents or information from you to continue with the Personal Loan verification process.

How do I know if my Personal Loan has been approved?

With ICICI Bank, you can easily track your loan application on Net Banking or the iMobile App. You can also talk to the customer care to get updates. Usually, the bank also sends updates by email or SMS, keeping you informed at each stage of the Personal Loan approval process.