How long does the personal loan approval process take?

The time required for personal loan approval can vary widely depending on the lender, your eligibility, and the completeness of your documentation. Digitalisation has made the process much faster, but timelines still depend on several factors.

For many online lenders, approval can be almost instantaneous if your application and documents are complete and you meet all eligibility criteria. In such cases, you may receive a decision within a few minutes to a few hours. Some lenders even disburse funds on the same day, provided all checks are cleared and agreements are signed promptly.

Banks and NBFCs may take longer usually between two to seven working days. This is because they often have more thorough verification processes, including manual checks of your credit score, employment status, and income details. For higher loan amounts or applicants with complex profiles, the process might extend to one or two weeks, especially if additional clarifications or documents are needed.

Important factors influencing approval time include:

• Completeness as well as accuracy of your application and documents
• Your credit score and repayment history
• Verification of employment and income
• Internal processing timelines of the lender

Any discrepancies, missing information or the need for further verification can cause delays.

Personal loan approval can range from a few minutes (with digital lenders) to several days (with traditional banks), depending on your profile and the lender’s processes. Being well-prepared and organised is the best way to speed up your approval.