123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Understand The Process Of The Personal Loan Disbursement

Profile Picture
By Author: Arjit Chalmela
Total Articles: 25
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

You should try to understand as much about the loan disbursement process as possible if you plan to take out a personal loan, primarily to finance a financial emergency. This will help you receive the loan in time to handle the crisis.
So, what is the disbursement process of the Personal Loan? How much time would it take to pay out your loan to the lender? Let us go through the entire process of application and disbursement to better understand personal loans.

The loan application is the first stage of the loan disbursement process. You will then be allowed to apply for a personal loan once you have chosen a lender. You can apply for personal loan online or by visiting the lender/ bank. In addition to a properly completed application form for loans, you will have to submit documents such as:
ID proof
Address proof
Income proof
Bank statements
Income Tax Returns (ITR)
Two passport size photographs 


The lender will then begin the approval procedure once you have submitted ...
... the loan application along with the necessary documentation. Approval will take 2-3 working days, depending on the lender you pick. If your records are not in order, approval will take longer. 

So, before submitting your loan application, make sure that you thoroughly review the documentation needed for the loan. Loan approval usually is easier if you are the lender's current client. For example, you can choose the same bank for your personal loan in which you have your savings or salary account.
 

If your loan is accepted, either by e-mail or by post, the lender will then give you a sanction letter. The sanction letter states that, along with other information such as interest rate, loan number, Equated Monthly Instalment (EMI), etc., your loan application has been accepted. 


After approval, personal loan disbursement time can vary from 1-2 working days. By visiting the lender, you will then obtain the cheque for the loan sum. The check is also mailed to your address by specific lenders. Many lenders have started depositing the loan sum directly into the borrower's bank account in the last couple of years. 


The lender will then give you a confirmation letter for the same one once the loan gets disbursed. This gets sent by e-mail or by post. The confirmation letter usually comes with a welcome package along with it. 

Details about your Personal Loan, EMI, amortisation table, EMI payment options, due date, customer service and more are included in the welcome package.

Total Views: 121Word Count: 404See All articles From Author

Add Comment

Investing / Finance Articles

1. Why Usda Home Loans Kentucky Are Great And Work In Other Rural States
Author: vikram kumar

2. Is A Usda Rural Housing Loan Near Me The Best Type Of Home Loan?
Author: vikram kumar

3. The Best Type Of Home Loans Ohio And For Rural Kansas
Author: vikram kumar

4. Crypto Coin Vs. Crypto Token
Author: bhagya

5. Best And Affordable Bitcoin Mixing Services
Author: Robert James

6. Top Tips To Consider While Applying For Car Finance
Author: surelend

7. Ethical Financial Planning Certification - Your Ticket To Improved Business
Author: Paul

8. What Is The Process Of Applying For Usda Home Loans South Carolina And Idaho?
Author: vikram kumar

9. What Is The Income Eligibility For Usda Home Loans West Virginia
Author: vikram kumar

10. Fantasy Vs Reality Of Saving In The 21st Century
Author: Intellisaving

11. 5 Reasons To Open A Savings Account
Author: Anujit Bhattachaarya

12. Forex Vs Stocks
Author: jessica smith

13. Consultants For Non Pbs United Kingdom Sole Representative Visa
Author: SmartMove2UK

14. Ways To Fix Poor Credit History To Avail An Emergency Personal Loan
Author: Ankit Verma

15. A Beginners Counsel For Investment In The Stock Market:
Author: dealmoney securities

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: