Personal Loan Disbursement Process – How it Works?


What is Personal Loan Disbursement?

The impact of digitalization has also left a mark on the way people borrow money. If you’re in a situation where you need immediate access to cash, an instant personal loan is the answer.

All you need to do is complete an online application process based on which you will get a loan offer. After you have accepted the offer along with the loan terms, you will receive the money in your account.

When the lender transfers the money to your account, it is known as a personal loan disbursement process.

Personal Loan Disbursement Process

These are some common steps involved in the personal loan disbursement process, irrespective of the lender you choose.

1) Applying for a Loan

Before the disbursement process begins, you need to complete your personal loan application. Depending on the lender, you will need to submit your basic information and documents like PAN, Aadhaar card, bank statement, salary slip, etc.

Want to apply for a personal loan with no document uploads or paperwork?

With Zype you can complete an easy application that takes less than 8 minutes and requires zero documentation!

Must Read: How to Get Instant Paperless Personal Loan Online?

2) Approval of the Loan

Based on all the information and documents you have provided, the lender will check your personal loan eligibility and approve you for an offer. The time taken for approval depends on the bank or NBFC you choose, which can even take up to 2-3 business days.

But with Zype, you can get approved for a personal loan up to ₹5 lakhs in less than 60 seconds.

3) Disbursement of the Loan

After you’re approved, you need to accept the offer along with the terms for your personal loan disbursement process to begin. The personal loan disbursement time after approval depends on the lender.

But usually, it can take 1-2 business days to receive the money. With Zype, you can get approved for a loan in 60 seconds after you have completed your application and get the money in your account within 24 hours.

What Happens After the Personal Loan Disbursement Process?

This is what happens after the personal loan disbursement process is completed:

1) You Will Get a Confirmation From Your Lender

After the loan is disbursed to you, you will receive confirmation from your lender that the loan amount has been transferred to your registered bank account. You will get the confirmation in the form of an email or a letter. This also contains information like your repayment plan, due date and monthly EMIs.

2) You will have to Repay Your Personal Loan

After you receive the money, you will have to pay it back with interest according to your repayment plan. It’s important to repay the loan on time to avoid consequences like penalty charges and a decrease in the credit score.

Also Read: Personal Loan Balance Transfer

Practising Responsible Borrowing

Before taking a personal loan, you should assess your financial situation. Practicing responsible borrowing will not only ensure you make on-time payments but also avoid any kind of financial burden.

The best practice is to calculate your EMIs before applying for a loan.

Understanding your repayments will help you plan your budget better, compare offers across various lenders and also choose a personal loan repayment tenure that fits your budget.

Want to calculate your EMIs within seconds? Just use Zype’s EMI calculator.

Key Takeaways from the Personal Loan Online Disbursal Process

Check your applicable personal loan interest rate and charges. The interest rate you’re offered on your loan depends on many factors like your credit score, repayment history and the capacity of the lender.

Understand your repayment plan and monthly EMIs to make sure you pay your EMIs on time.

Carefully read the loan agreement to understand all the terms of borrowing. Contact a lawyer or your lender if you have any doubts.


A quick personal loan disbursement process can help you get instant access to funds in times of need. That is why it’s very important to choose the right lender to borrow money.

With Zype, you can get super-fast personal loans up to ₹5 lakhs starting at just 1.5%* interest.

The application process takes less than 8 minutes and you can get approval for a loan in just 60 seconds. Zype’s personal loan disbursement process is quick, and you receive the money directly into your account within 24 hours.

Frequently Asked Question

Can I Prepay my Personal Loan Soon After it’s Disbursed?

It depends on your lender. On Zype, you can prepay your personal loan at any time without paying any additional prepayment charges.

What should I do if There's a Delay in My Loan Disbursement?

If there’s a delay in your loan disbursement, you should contact your lender and enquire about the same.

What Factors can Affect the Disbursement Timeline?

The time taken to disburse the loan depends on many factors including the type of loan, application process and disbursement process. There are other factors like public holidays, processing delays and technical errors that can affect the timeline of the loan disbursement.

Are there any Fees Associated with Loan Disbursement?

Most banks and NBFCs charge a processing fee to disburse the loan. The processing fee amount can vary from lender to lender.

Also Read: Why Opting For an NBFC Personal Loan is a Better Option?

What is the Typical Timeframe for a Lender to Disburse a Personal Loan Once it has Been Approved?

Typically, the personal loan disbursement time after approval for a lender is 1-2 business days. But the time can vary.

With Zype, you can receive the money in your account within 24 hours.

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