When you apply for a loan, you do so hoping that the money will be deposited in your account soonest possible. Maybe the loan was meant to give your business a boost, maybe it was for personal use or you needed to offset medical bills. Whatever the case, loans are generally meant to get us out of a financial hiccup. The first question that goes through your mind is how long it will take for the money to be deposited into your account.
The loan application process determines how long it takes for money to get into your account. To hasten the loan application process, here are some tips. Find out all the necessary documents that your lender requires and keep them at hand during the application process, Gather all the required information and statements needed. If you have any doubts or are unsure of something, don’t hesitate to ask.
One thing that can delay your loan is submitting an incomplete application. Since different lenders have different requirements, be sure to comply with all of them. If the lender requires your statements verifying your source of income, ensure you have them on hand. The loan application process can take anywhere between two days and a week depending on your preparedness and the required documents.
Before the loan is deposited into your account, it has to be approved first. The faster your loan is approved, the faster it gets into your account. One of the most crucial factors that affect loan approval is your credit score. All financial institutions have to check your credit score to determine how eligible you are for the loans you apply for.
Your credit score is determined by factors such as;
Outstanding balance- financial institutions use your outstanding balance to find out how well you manage your credit by determining your credit utilization ratio. Loan history- your loan history helps banks know how well or poor you are at managing loans. Most financial institutions require a minimum loan history of 6 months.
Repayment history- do you always pay your loans on time? Are you a defaulter? Through your repayment history, financial institutions can answer some of this crucial questions. A poor credit score can adversely affect your loan application while a good credit score reflects well on your applications.
The approval process is also dependent on how prepared you were when applying for the loan i.e. if you were able to avail all the required documents. It is also dependent on your lender, with banks taking anywhere between 7 days. Once your loan is approved, you can expect the money to reflect in your account after2 or 3 days.
It is important to note that lenders like banks can take longer as they mostly rely on manpower for verification of documents and assessments. The whole process of having loans approved typically takes one or two weeks. Once you have submitted your application and it is approved, you can wait for the funds to reflect in about a week.