What is the Processing Time for A Personal Loan?

People normally opt for personal loans when they need money in a hurry. It could be a family emergency, a health crisis, money for a holiday o any other unforeseen circumstance.

Hence, lenders have to make quick decisions when they decide on approving or declining a personal loan application. Underwriters look at bank statements, payslips, KYC documents to approve a personal loan. After the approval, the bank collects the loan documents and repayment cheques/electronic debit instructions before disbursing the loan. Now, technically, all this could happen in the span of a few hours, However, there is many a slip between the cup and the lip. Seldom are all documents available in one go. There could be clarifications required on the documentation. Also, the credit team could raise objections on various parameters which then have to be mitigated via a manual process.

The processing of a personal loan is between 1 day and 7 days from the time your application is 'logged-in' to when it is disbursed by the lender.

Lender	Expected turnaround times(hours)
Bajaj	24
Tata Capital	72
HDFC Bank	48
IDFC Bank	24
ICICI Bank	72
Axis Bank	72
Yes Bank	72
Fullerton	24
Standard Chartered Bank	24
Kotak Mahindra Bank	96
RBL Bank	96
Indusind Bank	96

In reality, however, the processing time, especially from application date to disbursal date is much longer and could be as long as 7-12 days. This is even more so, if there are some credit related approvals to be obtained (deviations from lender's standard policy). In such cases, the processing time could be much higher. Such deviations are common-place and this is exactly what fintechs such as Saral Credit are trying to challenge.