How to get a quick personal loan: Your essential guide for instant loan approval
31 January, 2025 | 11:47 IST
A quick personal loan could be helpful during a cash crunch. Availing a personal loan has become hassle-free with the emergence of digital lending platforms. Getting a personal loan approval quickly is easy and some lenders offer almost instant credit of loan amount into your accounts.
For a personal loan approval, you don’t need to provide any collateral or security. These loans are flexible and can be used for any personal financial need, be it for paying off medical bills, or even a foreign vacation. The amount you can borrow usually ranges from as low as ₹5,000 to as high as ₹50 lakhs , depending on the lender and their application process.
With minimal processing fees, no paperwork, and a quick disbursement many digital platforms are offering personal loans quickly. Availing such a personal loan depends on three key factors— credit score, your annual income and credit history.
Let’s take a look at all the key aspects of availing a personal loan quickly:
Many factors affect personal loan approval time, including your credit score, income and the processing time required by the lender. Usually, personal loan approval and disbursal can take anywhere between a few hours to a few days. Here’s how a personal loan disbursal could differ depending on lenders:
Digital platforms: Online loan applications have significantly cut down personal loan approval time. The procedure is quick and easy, requiring no physical documentation and only a little amount of document submission. You just need to have documents such as PAN,Aadhaar card and at times , proof of income or bank account statements ready to ensure speedy personal loan approval. For example, Moneycontrol provides instant loan offers up to ₹15 lakhs in partnership with top lenders. It’s a 100% digital process, with interest rates starting at 12% per annum and has no hidden charges.
Traditional lenders: The personal loan approval and disbursement processes may take longer if you apply through non-banking financial companies or traditional banks. While some banks have digitised their processes, it could still take a few business days for personal loan approval.
Pre-approved Loans: Based on an applicant’s credit history, many banks and other financial organisations provide pre-approved loans to customers. As a significant part of the verification process is already complete, a pre-approved personal loan disbursal process usually happens swiftly.
Pick the right lender: Select a lender that offers quick personal loan approval. Moneycontrol, for instance, provides instant loans with minimal documentation and quick disbursal.
Check eligibility: Usually, you need to be either a salaried employee or self-employed with a stable income. In addition, maintaining a good credit score (700 or above) can also reduce the personal loan approval time.
Submit documents: A complete digital process allows you to upload these documents online, speeding up verification and personal loan approval time. The documents include proof of identity, proof of address and proof of income. Submitting these documents upfront can significantly reduce personal loan approval time.
Complete KYC: Many online platforms offer instant KYC (Know Your Customer) verification. After completing your KYC, you need to set up your EMI repayment schedule.
Get disbursal: Once all the details are verified, the loan amount is disbursed directly to your bank account.
Even though online platforms can reduce the personal loan approval time, a few factors can influence the overall personal loan duration:
Credit score: Your personal loan approval is likely to happen quickly if your credit score is high.Income stability: Lenders consider your income stability while determining your ability to repay the loan. The personal loan approval process will be faster if your income is consistent.
Debt-to-income ratio: This ratio compares your total debt to your income. A lower debt-to-income ratio signals that you are financially responsible, thus improving your chances of getting a faster approval.
Existing loans: Having several ongoing loans can have an impact on your personal loan approval time or how much you can borrow.
Personal loan approval time: How to speed up the process
Keep the following things in mind to ensure that your personal loan approval happens fast:
Opt for a digital lender: Digital lenders provide quick loans without the need for paperwork. This reduces the personal loan approval time considerably.
Keep your documents ready: Before applying, make sure you have the copies of all required paperwork — Aadhaar card, PAN card, and salary slips or bank statements.
Maintain a high credit score: To ensure a fast personal loan approval, keep your credit score high.
Apply for pre-approved loans: If you qualify for a pre-approved loan, your personal loan time can be reduced greatly as you would be able to avoid much of the verification process.
Digital platforms such as Moneycontrol have made it simpler than ever to obtain a personal loan in India. Due to a completely online application process and zero paperwork, you can easily avail the funds you need to fulfill your financial needs.
Summary
Applying for a personal loan has never been easier with digital platforms offering quick approvals and instant disbursal. With minimal paperwork and no collateral, you can secure cash for your personal needs in just a few hours.
Disclaimer
This piece/article was written by an external partner and does not reflect the work of Moneycontrol's editorial team. It may include references to products and services offered by Moneycontrol.
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