You always take a personal loan in case of sudden need of money. Be it for home, wedding or lifestyle. In such a situation, when a message comes on your app that the loan is approved, you assume that the money will also come to your account soon. But this does not happen many times. The time between getting approval and the money coming into your account is affected by some common things, which loan companies often pay attention to. Let us understand those things in detail.
When you take a loan from a bank where your salary or regular income already comes, then the chances of getting the loan quickly increase. The loan company doesn’t need to guess how much you earn, where you live or how you manage your money. They already have all this information.
For this reason, pre-approved offers are processed very quickly. Their investigation has already been done several months or years ago. If you are applying with a new lender, even if it is digital, they still have to check the income pattern, address history and repayment behaviour. This alone may take a day or two.
How easy is it to understand your income
In case of getting money quickly, clean documents are more important than high income. It is easy to verify the regular salary coming every month. Irregular income, earning from different sources or frequent cash deposits can slow down the process.
Self-employed people feel its impact more. Even if the income is good, lenders carefully check the bank statement, GST filing or ITR to see whether the cash flow is stable i.e. money is coming regularly or not. If the status of any month is not clear, then the application skips the automatic process and goes to manual review.
Your credit profile as per loan amount
A good credit score is beneficial, but the overall situation matters more. If a person with a good score applies for a small loan amount, he gets approval quickly. But if the loan amount is high due to bad credit score or the EMI burden is increasing, then the case is looked at more carefully.
If there are recent payment defaults in your file i.e. late installments, multiple loan inquiries or EMIs higher than your income, the lender slows down the process. This doesn’t always mean rejection, but it does mean that a few more steps of internal approval have to be completed before the money can be released.
How does the loan company actually send the money?
Not all lenders transfer money immediately after getting approval. Some send money only during banking hours. Some release payments only once or twice a day. Weekends, holidays and daily cutoff times also matter.
Digital lenders generally work faster because form filling, e-sign and verification calls are all online. Traditional banks still take final confirmation or internal approval.