Today, you can see how fast the world around you is changing. Everything that once seemed affordable has become quite expensive to purchase. You may find the lack of funds to furnish your needs for a luxurious lifestyle, trying to tackle this inflation. This is exactly where the aid of a Personal Loan can be of best use to you. If you are looking forward to buying a car, a house or even planning a vacation abroad, the most important factor that comes to mind is money. By taking a loan, you can do anything you desire and make a way to repay the same. If you have something big planned in mind and you are lacking the kind of fund needed to fulfill your wish, then applying for a Personal Loan can prove to be the best decision.
The biggest advantage you have if you take personal finance is that there is absolute freedom on making use of the loaned amount. In addition, you do not need to mortgage your assets. You should keep in mind that having a good credit score will help you in getting the loan quickly and at a better interest rate.
Disbursement process of a loan
The word disbursement essentially means paying out the desirable money you asked for. This disbursement can be in the form of money given for starting a new company, lawyer expenditures, payments, etc. Even though there is a lot of information about personal finances online, the processes involved are less known. Most of you who are looking for a loan may be unaware of the actual steps involved. Here we have discussed in brief about the Personal Loan Disbursal Process, which will ensure that you acquire complete information before proceeding for an application.
- The procedure of loan disbursal: Once your loan has been approved by the lender, the process of loan disbursal will be initiated. The money can be given by various methods viz. by receiving the money directly into your account via National Electronic Funds Transfer. In addition, the money can be acquired in the form of demand drafts or even cheques. You are required to collect the DDs or cheques in this case form the lender and can get them encashed from your bank.
- Disbursal amount: As we know that on application for a loan, the creditor will look into the details of your credit history. However, the amount that you will receive from the lender upon sanctioning of the loan amount might be different from what you asked for. This difference in the amount can be due to the deductions in service tax fees, processing or any other fees. However, you must ensure that you have insights about the total deductions that will incur after the disbursement.
- Welcome kit: Soon after your loan gets disbursed, you will get a kit which includes all the required documents pertaining to the loan process at one place. These documents include your papers of signed up amount of loan, the time frame for repayment of the loan, interest rates, etc. You might also get a detailed chart of your month wise EMI payment that you are required to make. The lender might also send a confirmation mail on the e-mail id you provide at the time of application. In addition, you can also avail the facility to preview all these details over your phone on the mobile app provided by the lender.
- Disbursal time: In case you need money urgently, certainly the factor of disbursal time will play a vital role in case of applying for a Personal Loan. There are two ways by which you can get your loan disbursed. The first method is by manually going and completing the paperwork with the lender, which usually takes from a day to an over a week for disbursal. Other method includes uploading your documents and filling forms online. An online Personal Loan will be very convenient to obtain as you don’t have to physically go anywhere and it may be procured much faster as opposed to other types of loans. The disbursal process may take less than a few hours in case of an online application. So, if you are in need of money urgently, applying online will certainly speed up the process.
- Repayment of loan: The process of reimbursement of the loan in case of an instant loan, will start in the subsequent month, from the month of disbursement. In case the date of disbursement of the loan is before the 20th of the month, the repayment process begins immediately at the next month. However, if the disbursement is after the 20th of a month, then the repayment will begin at the month subsequent to the next month. This payment process can be in the form of regular EMI payments or by post-dated cheques.
- Penalty: Since the repayment of loans must be made within a stipulated time, you must keep in mind that you have enough amount of money in your bank at the time of your monthly reimbursement date. Since you have this time frame made in advance, you are advised to budget your expenses accordingly. However, in case you are unable to produce enough amount at the time of repayment then you will be subjected to a penalty. Not only will the penalty cause you losses in the loan, but will adversely affect your credit score. This type of penalty will make a huge negative impact on credit history and you may be unable to get a good loan thereafter.
The Personal Loan disbursal processes must be first clearly understood by you and only then, should you look forward to applying for the loan process. Due to the boon of technology at our fingertips, it has become much easier to apply for a Personal Loan and get the disbursed amount quickly. The sooner you get the disbursed money, the faster you can work on fulfilling your dreams. In order to complete your dreams, taking a financial credit will surely help you provided you use the fund wisely.