As banks fall over each other to attract customers, more and more Indians are lapping up personal loans like never before. Personal loan consumption has really taken off in India in the last decade as people use it to finance everything, including holidays, renovation, marriages, medical emergencies, gadgets, home appliances, furniture, and an unending list of products and services.
Massive Increase in Personal Loan Consumption – 2010-18
|Personal Loan||Consumer Durable Loans||Credit Card Loans|
May 2010 – Rs. 5.89 lakh crore
June 2018 – Rs. 19.33 lakh crore
May 2010 – Rs. 8,138 crore
June 2018 – Rs. 20,300 crore
May 2010 – Rs. 19,579 crore
June 2018 – Rs. 74,400 crore
And, why not? It’s easy, fast and comes without collateral. But the most important thing that attracts people to personal loans is quick processing. It is really a lifesaver in times of need or if you are planning something special.
But how long it does it take to get a personal loan and what are the factors that determine speedy approval? From a few hours to more than a week, time frames to get a personal loan approval varies according to the lender, borrower and various circumstances. We’ll discuss a few important ones here.
Mode of application
With banks using online or digital technology to expand their reach and reduce processing time, online loan applications are getting a lot faster than offline mode. If you apply for a personal loan through offline mode, though you don’t have to go to the bank, you still have to wait for the documents picked up by the bank representative from your home to be first verified and then submitted for application. If there’s anything missing, that’s another day or two of delay.
With online loan application, you can just scan and submit your documents and any missing documents are identified right away and the application is submitted within a few minutes. Therefore, if your bank or NBFC allows online application, the best way to get a faster personal loan is to use the online application method.
An online Bajaj Finserv personal loan from Finserv MARKETS is approved in three minutes flat and the loan amount credited to your bank account within 24 hours. If you go the offline mode in any financial institution, it can easily take between 3-4 days.
Your relationship with the lender
There is a high probability that you will get an instant personal loan if you are an existing customer with the bank or financial institution. Even better if you maintain a salary account with the bank. If your salary is credited with the bank, it wouldn’t be an exaggeration to say that your loan may get approved before you finish your coffee.
It’s possible because salary account holders are assigned pre-approved offers by the bank and their Know Your Customer (KYC) details are readily available. So, if you apply for an offer which is already pre-approved for you, your personal loan is almost instantaneous.
If you have an existing relationship with Bajaj Finserv, at Finserv MARKETS you can opt for the Hybrid Flexi Personal Loan for the best interest rates that you can get. This gives you the flexibility to make part payments and you can just pay only the interest amount as EMIs during the initial period.
Your employer plays a role
Do you know that banks and NBFCs have a grading system for employers? If you work for the top tier ones, your personal loan approval is a lot faster than those not found on the favoured list. It’s not that employees from smaller organisations don’t get loans; it’s all about the processing speed. Also, some banks have customized loans and special personal loan interest rates for employees of select multinational companies.
Good credit score and credit history
This should probably be top on the list and is really a no-brainer if you have ever applied for a loan before. Your credit history and credit score plays a significant role in the approval speed of your personal loan. If your credit score is high, you get faster loans and favourable personal loan interest rates.
The best way to ensure faster personal loan approval is to make sure that you fulfil at least a few of the above mentioned criteria. Maintaining financial discipline and a healthy debt to income ratio (your loans divided by your income) goes a long way in improving your credit health and helps you meet your financial goals.
If there is a need for some quick cash, instant personal loans are a real life saviour. An instant personal loan with us can help you take care of all your needs and requirements. What’s more? You can take advantage of a plethora of features such as hybrid flexi loans, customized offers etc. right from the comfort of your home! Head over to Finserv MARKETS, and apply for a Bajaj Finserv Personal loan with us, today!
Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!