Usually, lenders take 48 to 72 hours to disburse the personal loan. Currently, most lenders operate digitally. So, your loan application will be approved within 24 hours.
But some other factors include getting personal loan approval such as borrower’s monthly income, credit score, borrower location, etc. 24hr Loan makes it a digital process that connects with multiple lenders.
Follow the Steps to Get Personal Loan Approval
As a borrower, you need to follow some required steps for loan approval:
1. Complete the Loan Application
The countdown begins as soon as you submit a complete application, not when you start filling it out. A sloppy or half-done form will delay everything.
To move fast, have these ready:
- Government-issued ID
- Proof of income (Latest Salary Slips)
- Bank statements
- Employment details
- Desired loan amount and purpose
Many online lenders have streamlined apps that take 10–15 minutes. Traditional banks may take longer and might even require in-person visits.
2. Lender Review and Credit Check
After submission, the lender evaluates your credit score, income, debt-to-income ratio, and financial history. Depending on the online platform, this could take a few minutes or several hours. For banks or credit unions, it might stretch out to several business days.
3. Loan Approval
If everything checks out, you’ll get an approval decision. Some lenders offer instant decisions. Others may take a couple of days—especially if they flag something for manual review, like a recent job change or inconsistent income.
4. Review and Sign the Loan Agreement
Once approved, the lender will send you a loan agreement outlining:
- The loan amount
- Interest rate
- Repayment schedule
- Fees and penalties
Read this carefully. This is your last chance to back out or ask questions. Signing the agreement is your official green light to proceed. This is usually quick—minutes if you’re decisive, longer if you’re weighing your options.
Also Read: How does a personal loan impact your credit score?
5. Loan Disbursal
After you sign, the money gets disbursed. The speed here varies:
- Funding from online lenders is frequently available within 24-48 hours.
- Banks and credit unions: Typically 2–5 business days
Your bank account usually receives a direct deposit of the money.
Factors That Affect Loan Approval Speed
No matter the lender, these things can speed up or slow down the process:
- Credit score: Higher scores get faster responses.
- Debt-to-income ratio: Too much debt means slower or denied approval.
- Documentation: Missing payslips, bank statements, or IDs will delay the process.
- Loan amount: Bigger loans often require hard inquiry and take time.
Also Read: 650 CIBIL Score Personal Loan
Conclusion
Personal loans can go from application to disbursement within 72 hours. In more traditional settings, it could take up to a week or more. Want speed? Apply for a loan from 24hr Loan which provide loans within 1 day. Reach out for fast approval.