Personal loan disbursement process

Snneha Lukka july 8, 2019

Personal loans have a much quicker and easier disbursement process today than it used to be many years ago. Today, you can apply for a loan online and get it disbursed straight to your bank account, in 48 hours or less! However, one needs to keep in mind that there are several steps in the entire disbursement process that are involved. Here are the main steps in the personal loan disbursement process.

1. Log in: Log into the Upwards app, either through your Facebook or Gmail account. 2. Form Submission: Fill in the application form with all your details. Remember to fill each section carefully as this can be done only once! Upload your KYC documents Submit your application once finished. 3. Loan Application Processing: It takes about 24 hours for your loan application to be processed, which will depend on the authenticity of the information you provide. Lenders review your application form to verify your financial and KYC details. In certain cases with KYC documents, there may be further verification needed, for which the lender will contact you to furnish additional details. 4. Approval or Rejection: When the lender has gone through your application, they may approve a different amount for sanctioning as opposed to what you may have applied for. This is because based on your current financial situation and CIBIL score, you are eligible for only a certain amount. After your loan application has been approved or rejected, you will get a notification of the same via the app, email and SMS. 5. Document Pickup: After your loan has been approved, you will need to submit your original KYC documents for verification. 6. Loan Disbursal: Loan disbursal will depend on additional formalities that need to be completed after the loan is sanctioned. The loan amount will also factor in processing fees, service tax, and any upfront payments if decided prior. 7. Confirmation from the Lender: When your loan has been disbursed, the lender will send a confirmation letter via email or post. This will include information about your loan amount sanctioned and repayment schedule. 8. Repayment Process: After the loan is disbursed, the borrower will need to repay their EMIs from the subsequent month. For example, if the loan has been credited on 4th August, the borrower must begin repaying the EMIs from September, as per the repayment cycle. In certain cases, if the borrower receives the loan after the 20th of the month, their first EMI payment will start from the next-to-next month. In the earlier example, a borrower who received the loan post 20th August would need to pay their first EMI in October.


1. What happens after my personal loan is disbursed?

After your loan has been disbursed by the lender, you’ll receive an email and SMS confirmation regarding the same. You’ll also receive the information pertaining to your repayment schedule.

2. Is it possible to cancel my loan after the money gets credit to my account?

Unfortunately, you cannot cancel your personal loan after you’ve received the money. However, you can cancel your application before the money has been disbursed, an. even before it has been approved by the lender. No, you cannot cancel your personal loan application after the money is deposited i. your account. That said, you have time to cancel your personal loan application befor. the money is disbursed. You can cancel your personal loan application even after i. has been approved by the financial lender. Usually, unless it is an instant persona. loan, the customer care unit of the bank will call you prior to the disbursal of the loan. You can cancel your personal loan even at this point.

3. How will I receive the personal loan amount?

The most common way of receiving the personal loan amount is direct transfer from the bank to your bank account that you’ve mentioned in the application form. The direct transfer will be carried out by the bank via the NEFT facility. In addition, certain banks even disburse the personal loan amount via cheque or demand draft that has been addressed to the borrower. However, if you wish to receive the personal loan amount via cheque or demand draft, then you will have to collect it at the bank branch and deposit it in your home bank branch. A GST rate of 18% will be applicable on banking services and products from 01 July, 2017. In case there are changes in your employment, it’s imperative that you inform the change in your bank account to the lender.

Snneha Lukka

july 8, 2019

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